Construction & Contracting

Construction accounting involves long-term contract revenue recognition (percentage-of-completion or completed contract methods), job cost tracking across multiple active projects, WIP scheduling, retainage management, and bonding requirements. These are specialized methodologies that general accountants are not trained to handle, and errors can directly impact your bonding capacity and project profitability.

A Work-in-Progress (WIP) schedule compares the actual costs incurred and revenue recognized on each project against the estimated total. It reveals over-billed and under-billed positions, identifies projects that are losing money, and is a critical component of financial statements for surety companies and lenders.

Yes. SMAART prepares financial statements specifically formatted to meet surety requirements, demonstrating working capital strength, backlog management, and accurate WIP positions. We work directly with your bonding agent to present the strongest possible financial picture.

Absolutely. We process certified payroll for projects subject to Davis-Bacon Act or state prevailing wage requirements, ensure proper wage rate classifications, and prepare all required compliance documentation.

The look-back method is an IRS requirement for contractors using percentage-of-completion accounting on long-term contracts. When a contract is completed, you must compare the actual profit to the estimated profit used during the contract and calculate interest owed to or from the IRS on any differences in tax timing. SMAART handles these complex calculations as part of our construction tax compliance services.