Accountants and CPAs Serving Construction Companies and Developers in California

However, any experienced developer or construction company owner will state that having a shovel-ready project is only part of the process of getting a job off the ground. In addition, developers will need to ensure that sufficient funding and financial aspects of the deal are also in place. Working with experienced CPAs and accountants can help construction firms and property development companies leverage assets and better position itself for development opportunities. Our accountants can also assist with routine day to day accounting, payroll, 401(k) audits, and additional tax needs.

Accountants Can Provide Payroll Tax and Additional Accounting Services to Construction Companies

One of the most fundamental obligations that come with running a business of any type is handling employee payroll and benefits. Handling payroll taxes, sometimes referred to as employment taxes or trust fund taxes, properly is extraordinarily important because of the array of consequences that can potentially impact employees, the business itself, and “responsible parties” with a duty to administer these obligations and benefits.

When a payroll tax obligation is not properly handled, business owners are often shocked at how aggressive enforcement actions are handled. Business owners may face frozen accounts and other consequences that restrict cashflow or make it impossible to carry out business plans. “Responsible parties,” including business owners and bookkeepers, can face personal liability for a willful improper handling of this obligation. Employees are impacted because non-payment of Social Security and Medicare taxes can impact future eligibility for these programs and unemployment benefits.

We Can Work as a Part-Time CFO for Your Business

Aside from payroll tax obligations, our accounting firm can also provide day-to-day tax and financial guidance. Hiring a full-time CFO can cost a business $75,000 to $125,000 or greater not including bonuses of benefits. While many companies would benefit from meticulous and strategic financial guidance, many businesses simply do not have the budget to hire a full-time CFO. However, this type of advice and guidance can provide an array of benefits including:

• Assisting the business manage its cash and assets.
• Engage in trend analysis to better position the company for future opportunities.
• Liaison with and oversee bankers, insurance agents, investors, and other parties impacting your business capital and cashflow.
• Review and negotiate insurance policies and other similar obligations.
• Assess, discuss, and recommend tax-saving strategies.
• Peace of mind knowing that your business finances are being oversee by a professional with decades of experience.

Working with our accounting firm to provide part-time CFO services can allow your business to focus on opportunities and ensure that it is well positioned.

Accountants Can Assist Developers with Like-Kind Section 1031 Transfers

There are numerous provisions in the U.S. Tax Code that are beneficial to property developers and parties engaged in similar industries. Perhaps the most beneficial of these tax-saving provisions is the Section 1031 like-kind transfer.

Under this section of the U.S. Tax Code, developers can generally defer the tax impact of certain transactions that would otherwise trigger capital gain taxes. When businesses are required to pay capital gains taxes, that generally means that less capital is available for projects and development projects. However, under Section 1031 of the U.S. Tax Code, a business may defer paying capital gains tax provided that the proceeds are reinvested into the like-kind property. Like-kind property is generally considered a property that is of the same nature, class, or character. The quality of the various properties is not a consideration in determining whether property qualifies as like-kind. Typically, real estate developers and construction companies have broad discretion to utilize this provision. However, it is important to work with an experienced tax professional because mistakes can result in penalties, fines, and other negative consequences.

Work with Accountants Serving Construction Firms in Roseville, Folsom, Sacramento, and Beyond

The accountants, CPAs, and financial professionals of the Cook CPA Group are dedicated to providing on-point, professional tax and financial guidance to Placer County and other local construction firms. If your firm has concerns regarding taxes, its finances, or ways to better manage its money and assets the financial professionals of the Cook CPA Group can help.