Many contractors hire a CPA, talk to them once a year in April, and assume their financial house is in order. But when they try to figure out if their last remodeling job was profitable, their CPA cannot help them.
Why? Because a CPA relies on the daily operational data entered by a bookkeeper. If the data going into the system is garbage, the tax return coming out will be based on garbage.
What a Construction Bookkeeper Does
A bookkeeper is your financial boots-on-the-ground. They handle the operational accounting:
- Tracking materials, labor, and subcontractor invoices to specific jobs.
- Reconciling bank accounts so your balance sheet actually matches reality.
- Managing accounts payable (making sure suppliers are paid) and accounts receivable (making sure clients pay you).
- Ensuring you have W-9s and insurance certificates from your 1099 subs.
What a CPA Does
An accountant or CPA is your high-level strategist. They handle compliance and planning:
- Filing your federal and state tax returns.
- Advising on whether to buy or lease a new fleet of trucks for tax depreciation purposes.
- Defending you in the event of an IRS audit.
The Perfect Partnership
At Atlas Accountants, we handle the rigorous, day-to-day construction bookkeeping and job costing. When tax season arrives, we hand your CPA a perfectly tied-out, bulletproof set of financials. Your CPA files your return quickly without charging you an extra $5,000 for "cleanup work."