Are you prepared to expand your current construction or building enterprise? There are a few things to think about before you do that. A CPA in South Abington Township, PA, can not only give you advice but can also help you with managing your expenses.
To get a good night’s rest, proper bookkeeping is essential.
Do you currently have someone performing the bookkeeping for your construction business? Is it something they understand well? If that is the case, that is terrific. But how can you be so sure? In experience, business owners frequently conflate bookkeeping and tax preparation. Remember that preparing your taxes and keeping your books are two separate activities. Good bookkeeping ensures you always know how much money has come into the business.
A standard error in the construction business is that temporary and permanent positions are recorded incorrectly. This leads to erroneous profit estimates, which can confuse you when submitting bids for projects. You also know that the consequences of improper bidding on a building project can be severe.
Make sure the person or people keeping your books are doing it accurately. In the alternative, it can cause a great deal of worry and restlessness.
Many contractors are unaware of the proper way to pay themselves.
Many independent contractors, in my experience, need help understanding how to pay themselves properly. Do you have the funds to manage payroll if your company is organized as a S corp? Having a CPA in your camp is helpful since they can see what you do not while helping you stay compliant with the newest IRS standards regarding payroll.
Always pay on time.
There are a few factors to consider when figuring out your tax liability. Paying your taxes on time is an excellent first step. You should avoid incurring late fees and penalties if possible. If you have employees, you must also ensure that all necessary withholdings are paid. From a tax and bookkeeping viewpoint, these are the minimum requirements for running a successful construction business.
Get your accounting in order right away.
The following advice is more focused on bookkeeping than tax planning. The first stage in maintaining a successful business is to organize your financial records, followed by tax preparation.
A certified public accountant can assist you in determining if your books are being kept properly.
Invest in your future through tax planning.
Once the books are in order, it is time to start thinking about taxes. Tax planning is consulting with a certified public accountant (CPA) to discuss your business’s potential tax liabilities and planning strategies.
