Construction

Produce maximum results

Construction industry experts who can get you there

We’ll help you build financial success.

The construction specialists at Boyum Barenscheer have extensive experience helping contractors and trade professionals manage their business to produce maximum results. Our involvement in numerous trade organizations ensures we’re on top of emerging issues and industry trends. Our industry recognition includes being selected as one of only 75 accounting firms across the nation to be a member of the Construction Industry CPAs and Consultants (CICPAC), and the only member in Minnesota.

We work with a variety of construction professionals including

  • Commercial contractors and developers
  • Residential contractors
  • Specialty contractors

Our services

Performance and Profitability

  • Project bidding and estimating
  • Information systems integration
  • Job costing and overhead rate analysis
  • Cash flow analysis
  • Constraints management

Strategy and Management

Tax Planning and Preparation

Compliance and Assurance

Accounting and Outsourced Services

Trade associations

Our industry involvement includes being selected as one of only 75 accounting firms across the nation to be a member of the Construction Industry CPAs and Consultants (CICPAC), and the only member in Minnesota.  Boyum Barenscheer is proud to be members of the following construction organizations:

FAQs

 
What method of accounting should I use for my construction company?

There are many different accounting methods that maybe available for your construction business. It all depends on what you qualify for and what is best for your tax situation. Some of the methods are cash method, accrual method, completed contract method, percentage of completion method, accrual method excluding retainage for accounts receivable and accounts payable, exempt percentage of completion, 10 percent method.

 
What deductions and credits are available for my construction company?

1) Qualified Production Activities Deduction: Don’t miss out on the Qualified Production Activities Deduction available to construction companies equal to 9% of qualified income. The deduction is taken on page 1 of your individual return for partnership and S corporation owners and on the front page of the 1120 for corporations.  Qualifying activities include construction and substantial renovation of real property, including residential and commercial buildings and infrastructure such as roads, power lines, water systems, and communications facilities by a taxpayer engaged in the active conduct of a construction trade or business. Be careful with this allocation because not all receipts qualify. Domestic production gross receipts do not include gross receipts derived from the lease, rental, license, sale, exchange or other disposition of land. 2) Research and Development: Research and development is not just for scientists. You may be surprised to hear that some of your activities can qualify for a research and development credit. Engineers, designers, and machinist often spend time improving the constructions process. Exploring new methods or constructions techniques, improving construction equipment, designing LLED/green initiatives and performing request for information process (RFI’s) are all activities that would make you eligible for this credit. If you haven’t considered this incentive, we can help figure out which part of your business activities qualifies. 3) Work Opportunity Credit: Reconsider who you are going to hire. The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment. This credit takes some planning so it should be built into your hiring process. The employer must obtain certification that an individual is a member of a targeted group before the employer may claim a credit. Qualified veterans, qualified long-term unemployment recipients, or SNAP (Food Stamp) recipients and are some of the groups that qualify for a credit that ranges from $1,200 to $9,600 depending on the employee hired. Give us a call when you are ready to hire new employees so we can help you take advantage of this credit opportunity.

Contact Tom for more info

Tom Hofstad, CPA

Tom Hofstad has been with Boyum Barenscheer for over 25 years. His entire professional career has been spent serving clients in the tax arena, now working with many of the firm’s larger clients. He enjoys the one-on-one relationships he has formed with so many of his clients…