MN Construction Accounting, Tax & Advisory Services
Accounting & Advisory Services Built for Construction Companies
Construction companies operate in a more financially complex environment than the average industry. Long project timelines, volatile material and labor costs, and increased risk exposure demand a level of accounting precision that general CPA firms are rarely equipped to provide.
DHA CPAs is a construction CPA firm in Minnesota that specializes in construction accounting services for local contractors. For decades, our CPAS have worked alongside construction companies of all sizes, guiding them through tax strategy, entity structuring, revenue recognition, operational efficiency, and succession planning.
As a CPA for construction companies, DHA provides accounting, tax, advisory, and consulting services rooted in our deep knowledge of the construction industry’s inner workings. Our approach helps contractors gain clearer financial visibility, reduce risk, strengthen cash flow, and make smarter business decisions at every stage of growth.
Construction Industry Challenges We Help Solve
- We support construction cash flow management by helping contractors control delayed payments, retainage, and uneven billing cycles
- Our CPAs implement accurate job costing for contractors, providing real-time insight into labor, material, and overhead costs.
- Our team guides construction companies through the accounting complexities of long-term contracts to ensure clearer financial reporting and compliance.
- We help Minnesota contractors navigate labor-driven construction financial challenges such as certified payroll, multi-state taxation, and workforce cost tracking.
- Our CPAs prepare construction firms to meet bonding, financing, and lender requirements with accurate financial statements and reporting.
- We advise construction companies on managing construction financial challenges created by economic cycles and project backlogs.
Construction Accounting Services
- Job Costing & WIP Reporting: We provide specialized job costing accounting and WIP reporting for construction companies, offering accurate financial insight that supports better project management and profitable decision-making.
- Percentage-of-Completion Accounting: To improve your financial reporting, our team applies compliant percentage-of-completion accounting methods to recognize revenue on long-term construction contracts.
- Financial Statement Preparation: Our CPAs prepare construction financial statements that align with your reporting needs, bonding capacity, lender requirements, and internal performance analysis.
- Payroll & Labor Cost Allocation: We structure construction payroll systems to accurately track labor burden, allocate costs to jobs, and improve visibility into project profitability.
Construction Tax Planning & Compliance
- Contractor-Specific Tax Strategies: Our approach to construction tax planning is built around proven contractor tax strategies that minimize liability, improve cash flow, and support your long-term business goals.
- Multi-State Tax Considerations: We manage complex construction business tax services, helping contractors stay compliant with state and local tax obligations in Minnesota and beyond.
- Entity Structuring: Our CPAs can advise your construction company on whether to structure as a LLC, S Corp or C Corp based on which entity structure is most beneficial for your growth plans and tax efficiency.
- Depreciation & Equipment Write-Offs: Our strategic depreciation and equipment write-off plans help contractors to maximize their deductions while supporting capital investment.
- Construction Tax Planning: We develop forward-thinking contractor tax strategies to manage fluctuating income, minimize tax exposure during high-profit years, and stabilize long-term financial performance.
Advisory & Consulting Services for Contractors
- Operational Efficiency: Our construction business advisory services help contractors improve operational efficiency by aligning financial systems, job data, and performance metrics.
- Financial Forecasting & Budgeting: Our construction consulting services support accurate forecasting and budgeting, giving contractors clearer visibility into their current cash flow and future capital or staffing needs.
- Risk Management & Internal Controls: By strengthening internal controls and risk management systems, our CPAs reduce construction companies’ financial exposure and prevent fraud.
- Mergers, Acquisitions & Exit Planning: We support contractors through acquisitions, mergers, and exit planning by providing financial due diligence and transaction-ready reporting.
- Succession Planning for Construction Firms: Our team specializes in contractor succession planning by helping with preparations for leadership and ownership transfers, and developing long-term continuity strategies.
SPECIALIZED SERVICES FOR OUR CONSTRUCTION CLIENTS INCLUDE:
Tax Planning
- Capitalize on the newly expanded availability of using the Completed Contract Method (CCM) for tax purposes
- Optimize the new 199A Qualified Business Income deduction available to contractors
- Maximize tax savings on equipment purchases by analyzing new expanded bonus and Section 179 depreciation using a multi-year approach
- Analyzing, planning, and taking advantage of the differences in tax law treatment for residential vs. commercial contracting activities
Wealth Accumulation
- Apply a multi-year tax planning approach to account for the cyclical nature of construction economic trends
- Formalize a plan for ownership succession and business transfer
- Strategize for family objectives including retirement planning and other diversified investment options
- Structuring long-term business property holdings with tax benefits
Business Analytics
- Establish and automate real-time job costing procedures and KPI indicators
- Provide profit margin analytics including accounting for direct vs. indirect job cost allocations
- Cash flow forecasting including accounting for draw payments, retainage, and warranty work
- Analyze gross profit and net profitability by job type, division, project manager and other KPI indicators
Assurance
- Provide impact analysis of Completed Contract vs. Percentage of Completion accounting methods
- Determine appropriate job cost allocations and accounting methods
- Ensure functionality of internal controls designed by management
- Development of alternative assurance solutions to compliment requirements established by bonding companies, financial institutions or other stakeholders
"I have been a client with DHA for almost 15 years. In that time they have helped me and my business with annual tax minimization strategies, wealth accumultion planning, and an analytical review of my business financials. By connecting with my other advisors, they give me a well-rounded view of my financial situationand help me understand my options so I can make the right financial decisions for my business."
Jamie Fritz, Fritz Cabinets and Furniture, LLC
"DHA streamlined our accounting process and put measures in place that makes it possible for my internal team to keep up with monthly financials. That consistency allows DHA to complete monthly Financial Analytics, which provides the moment- by-moment information I need to make decisions in all areas of my business. DHA not only gives me options for my business but helps guide me in making the right decisions for my company. Their staff is thorough and pleasant, and their fees are in line with the amount and quality of work they are providing. DHA has helped my business achieve its goal of 100% growth, and without them this would not have been possible.""