Building a company from the ground up makes you want to do anything possible to protect it. Safeguarding profits during downtimes, ensuring there’s enough work to pay the bills, and figuring out ways to stay competitive help keep it viable.
Choosing the right outside assistance, especially your CPA firm, is crucial, too.
In-depth knowledge of the industry helps CPA firms guide and advise contractors with more insight than firms lacking an industry focus. Specific business aspects contractors must deal with (like equipment purchases, professional dues, and vehicle deductions) are different from other types of companies.
Specialized CPA firms know the optimum time to make purchases, how to write them off, and what to plan for in the next one, two, or five years to drive growth.
You are an expert in your field. You’re a plumber, electrician, roofer, or other professional. The same can be said of specialized CPA firms. A CPA probably doesn’t know which roofing nails to use or how to replace a cable conductor.
Working with a specialized CPA firm can help contractors uncover many deductions they wouldn’t know about otherwise.
As with the deductions, CPAs that work with companies like yours every day understand the tools that keep financials organized and complete. They have the inside scoop on the software, mobile applications, and solutions other contractors are using to save time and money. They can make recommendations that fit your business. General CPAs won’t possess this intel.
Missing a few deductions isn’t the only bad thing that can result from less-than-stellar bookkeeping practices. Missing deadlines, failing to report certain income, and other missteps can subject your business to fines and other penalties. CPA firms unfamiliar with your industry may overlook these, while a specialized CPA will know exactly how to proceed to keep you out of trouble.
Related: What Happens If You File Your Business Taxes Late?
Tedious, repetitive, manual processes drain a company’s efficiency and sap its time and money. Accounting companies that work in your industry will know the latest and greatest ways to automate and streamline bookkeeping and tax processes to make them as efficient as possible.
Most contractors aren’t happy sitting back and being satisfied with their current business. They want their company to grow! Specialized CPA firms help achieve this goal in a couple of ways.
First, they find every dime of deductions at tax time to help contractors keep as much of their hard-earned cash as possible.
Second, they handle the bookkeeping, giving contractors time to source new business, offer attentive customer support, and take on bigger jobs.
They keep employee documentation and expense receipts. They stay abreast of just-passed tax laws. CPA firms specializing in the contractor space are essential for maintaining compliant operating standards.
Lots of things can keep a business owner up at night. Contractors who work with CPA firms that lack knowledge of the industry may worry and wonder. Are the CPAs counting every valid deduction? Are they doing what they can to minimize risk and streamline processes? Do they stay updated on new laws that affect my business?
Business owners who partner with a specialized CPA firm don’t have to worry about these things.
Related: 25 Tax Deductions for Tradesmen and Contractors that Can Save You Money All Year Long
Perhaps the longest-reaching reason to choose a CPA firm that specializes in the contractor industry is the time it will free up. Instead of working with a CPA that needs you to explain your business, the firm will already understand the industry and what you need. This partnership will reduce the time you spend on accounting. Then, you can focus the savings on building your business and growing your reach.
We work with tradesmen and contractor businesses just like yours every day and know the tasks we can take off your plate. Let us reduce the time you spend on accounting responsibilities and increase the time you have for expanding your business. Click here to schedule a consultation today!