Construction Accounting Is Not General Accounting Applied to a Job Site
A construction business does not run like a retail operation or a professional services firm. Revenue is recognized differently. Costs are tracked by project, not just by category. A job that looks profitable in month two can look very different by month six if the estimating was off or the change orders were not documented correctly.
General accounting handles transactions. Construction accounting handles transactions inside a project structure, and that distinction matters every time you pull a report, file a return, or try to understand whether a job actually made money.
Maris works with construction businesses across Seattle, Everett, and Snohomish County that need an accounting firm with specific experience in the industry, not one that is learning on their file.
The Margin Is Built Into the Estimate. The Accounting Protects It.
A construction project is won or lost at the estimate. But the margin that was built in at the start gets eroded in ways that are invisible without the right accounting structure behind them. Labor costs that drift. Materials that get charged to the wrong job. Subcontractor invoices that arrive late and hit a period that is already closed. Overhead that is not allocated correctly across projects.
Job costing is the accounting discipline that keeps this visible in real time. When every cost is tracked against the job it belongs to, project profitability is not a guess at completion. It is a number you can see while there is still time to act on it.
Maris sets up and maintains job costing systems that give construction business owners a current picture of where each project stands, what it is costing against what was estimated, and where the variances are coming from.
Tax Planning in Construction Requires Industry Knowledge
The tax rules that apply to construction businesses are not the same rules that apply to most other industries. The percentage of completion method and the completed contract method produce very different tax outcomes depending on the size and duration of the project. Choosing the wrong method, or applying it inconsistently, creates compliance problems and missed opportunities.
Home construction tax rules carry their own set of requirements. The treatment of long-term contracts, the timing of income recognition, and the rules governing small contractors all require specific knowledge to apply correctly.
Maris stays current on construction tax law so that the decisions affecting your tax liability are made with a full understanding of what the rules allow and what they require.
What We Do for Construction Clients
The work covers the full scope of what a construction business needs from an accounting firm.
On the tax side, that means tax planning and compliance, contractor-specific tax strategy, depreciation planning for equipment and assets, and payroll tax management for field and office staff. On the business side, it means job costing setup and maintenance, cash flow and budgeting analysis, work in progress reporting, outsourced CFO services, and financial statement preparation. For transactions and growth, it means bonding and bank financing support, business valuations, succession planning, and internal control reviews.
Who We Work With
Maris serves general contractors, specialty subcontractors, residential builders, commercial construction firms, and construction business owners at every stage from startup through succession. The accounting challenges are different across those categories. A residential remodeler tracking five jobs at a time has different needs than a commercial general contractor managing a $20 million project with twenty subcontractors.
The engagement is built around how your business operates, not around a standard package.
Cash Flow Is the Operating Problem Construction Owners Talk About Most
Projects are billed in draws. Subcontractors and suppliers need to be paid on schedules that do not always align with when the draw comes in. A slow owner payment on one job can create a cash crisis across the whole operation.
Construction businesses with accurate, current books and a CPA who understands the industry cash flow dynamics are positioned to manage that gap rather than be surprised by it. The right financial reporting makes the problem visible early. The right planning keeps it from becoming a crisis.
Maris & Associates CPAs provides construction accounting services to contractors, builders, and construction business owners across Seattle, Everett, and Snohomish County. Contact us to talk through what the engagement looks like for your specific business.