Construction bookkeeper vs a generalist CPA
They do different jobs. Most builders need both, working together.
Short answer: A CPA firm usually focuses on tax returns, tax planning and sometimes reviewed or audited financial statements, often once a year or once a quarter. A construction bookkeeper or controller works inside the books every month: coding costs to houses, reconciling, tracking draws and change orders, and producing job cost and WIP reports. Builders generally need the monthly work done well so the CPA can do the tax work well.
| Construction bookkeeper or controller | Generalist CPA | |
|---|---|---|
| How often | Every month | Often yearly or quarterly |
| Main output | Closed books, job cost by house, WIP, draw packages | Tax returns, tax planning, reviewed statements |
| Focus | Is each house making money right now? | What do you owe and how do you plan for it? |
| Tax and legal advice | No (we never give it) | Yes, tax advice |
Where a generalist CPA can fall short for builders
Some CPA firms know construction well. Others serve many industries and see your books after the year ends, when cost overruns can no longer be fixed. If your CPA has to reconstruct job costs at year end, the monthly work is missing.
How we work with your CPA
We keep the books, send the schedules your CPA asks for and answer their questions. Tax method, entity and planning decisions stay with your CPA.
Common questions
Will you replace my CPA?
No. We do not file taxes or give tax advice. We make your CPA's job easier.
My CPA does my bookkeeping. Should I change?
If you get job cost by house and a closed month within a couple of weeks of month end, maybe not. If not, it is worth a conversation.
Can my CPA get access to the books?
Yes, with their own login. We never share passwords.
Related
By John Mos, Founder. Updated . We do not give tax or legal advice. Please ask your CPA or attorney.
See where your margin goes, house by house.
Tell us about your homes and your books. If we are a fit, we start with a $750 Job Cost Checkup: written findings and a fixed quote in 10 business days, credited to your first month if you sign up.