Construction industry businesses need more than just tax, accounting and payroll expertise from their CPA – they need a holistic accounting and finance team to drive their growth and success. What do you need to grow your business?

  • Do you want real-time insights into how cost overruns and change orders impact your profitability?
  • Do you want deeper visibility into cash flow to pay contractors timely and seize new opportunities?
  • Do you want to ensure you are maximizing tax deductions while staying compliant with all tax obligations, including local requirements?

Partnering with Kirsch CPA Group will provide you with all of the above, leveraging the decades of construction accounting and finance expertise Kirsch has provided to over 200 general contractors, subcontractors and home builders in Cincinnati, Dayton and beyond since 1991.

Kirsch Overview Video

Working with Kirsch is like having a fractional CFO and tax expert providing the accounting support and reporting that you need day-to-day as well as helping you to overcome bigger challenges that arise over time.

Holistic Accounting Benefits for Construction Businesses

Increased Financial Management and Cash Flow

  • Thoroughly organized documentation so you can manage your WIP schedule, change orders and invoicing faster so you can get paid faster (and not lose money)
  • Forecast cash flow effectively so it reflects your draw schedule and you can make the right financial decisions
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Access to Funding and Mitigating Risks

  • Reviewed financial statements to secure bonds, obtain credit or finance equipment purchases
  • Clear visibility into profitability and growth opportunities
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Optimized Tax Strategy

  • Tax planning that takes advantage of Section 179 and bonus depreciation to save money
  • efficient handling of local, multi-state and federal taxes
  • Avoid tax under/overpayments
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Increased Profitability and Effective Processes

  • Take indirect costs into account so you can bid profitably
  • Calculate prevailing wages for public projects
  • Know the profitability of every project
  • Maximize value from your investment in ERP/accounting systems (e.g, Acumatica, ComputerEase, Foundation, QuickBooks)
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Have a Business That Is Worth More Money

  • When it is time to sell, own a business that is highly valuable
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Certified Payroll & Prevailing Wage Reporting

  • Weekly certified payroll reports filed with the U.S. Department of Labor to ensure compliance with prevailing wage requirements and prevent delays in contract payments or penalties for non-compliance
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Holistic Services to Manage Your Business

Financial Visibility

  • Enhance financial awareness to make informed business decisions
  • Analyze and optimize your cash cycle to improve liquidity and cash flow
  • Identify opportunities for profit and cash flow improvement
  • Provide budgeting, forecasting, and cash flow analysis to manage long payment terms, seasonal fluctuations, and capital expenditures
  • Utilize the most advantageous accounting method depending on your specific circumstances (completed contract, cash basis method, or percentage of completion)

Accounting Day-to-Day Support

  • Efficient and accurate preparation of financial data on a monthly, quarterly, and annual basis
  • Enhance internal procedures to control costs, streamline accounting processes and improve results
  • Provide timely financial reports to meet banking and investor requirements
  • Offer advanced accounting support for bookkeepers or accounting teams on issues like journal entries, revenue recognition, and lease accounting changes
  • Supply supplemental staff to address gaps in AR, AP, bookkeeping, and payroll, including certified payroll and prevailing wage reporting
  • Reduce the need to recruit accounting staff for growth or to replace retiring employees

Business Planning and Advisory

  • Navigate unforeseen issues and challenges, creating plans and goals to address them
  • Evaluate pricing strategies and changes to increase profitability
  • Facilitate financing by finding credit and financing alternatives
  • Provide M&A support for expansion and sales, including business valuation
  • Assist with succession planning to ensure smooth transitions
  • Advise on new accounting systems for improving business processes to maximize cash flow, profit, and business value while tracking revenue by job and key performance indicators

Tax Strategy, Preparation & Mitigation

  • Prepare comprehensive business tax returns for federal, multi-state and local entities
  • Maximize qualified business income deductions (QBI)
  • Optimize tax deductions for equipment purchases, including bonus depreciation and Section 179, as well as credits for R&D, clean energy, and more
  • Track tax obligations by city to avoid paying the wrong localities and notices for unpaid tax
  • Avoid payroll issues for employees with the right system to monitor local requirements
  • Conduct quarterly tax planning to minimize additional tax liabilities
  • Implement cash planning strategies for efficient tax expense management

The Kirsch Construction Team

Pete Abner, CPA
PARTNER/MEMBER

Anthony Lewis, CPA
Senior Manager

Kyle Thorpe, CPA
Manager

Matt Harper
Senior Analyst

Accounting & Financial Support Throughout Your Business Lifecycle

Kirsch Construction Industry Experience

  • General contractors
  • Home builders
  • Land developers
  • Plumbing contractors
  • Landscaping contractors
  • Utility contractors
  • Electrical contractors
  • HVAC contractors
  • Excavators
  • Roofing contractors
  • Concrete contractors
  • Masons
  • Civil/heavy highway contractors
  • Specialty contractors

Private/family-owned construction companies face unique challenges and decisions as they progress through each stage of the business lifecycle. From humble beginnings to growing revenues and profitability, to an exit, business owners and leaders are faced with increasingly challenging decisions that are made easier with the right accounting and financial partner. Below is how Kirsch CPA Group provides this support throughout the lifecycle of your business.

Growing Your Business & Outgrowing Your Accounting System

As you grow, your business will encounter challenges and questions that go beyond day-to-day operations. Issues with job costing, supply chains, inflation, labor shortages, sourcing bottlenecks, and competitors may make it difficult to navigate the path to success. It’s important to equip your business with the right systems and team for growth, preparing for the unexpected and minimizing your tax burden.

Whether it’s a financial reporting issue or an operational challenge, the Kirsch team will help you solve problems and find actionable strategies. You may not need a full-time CFO but there will come a time when you’ve outgrown the accounting services you used when you were getting started.

Signs that it’s time to consider next-level accounting help include:

Chronically late information from your internal accounting procedures

Poor visibility into cash flow

Higher than expected tax bills

You’re wearing too many hats

Income and expenses are not tracked by job

Failure to optimize tax credits and exemptions

Example Construction Accounting Engagements

Service Plan

Growth Enablement

Growth Acceleration

Typical Profile

  • Less than $6 million in sales
  • 5-20 employees
  • 3+ years in business
Company Example

Seizing Growth Opportunities

In its fourth year of business, a plumbing construction contractor had an opportunity to subcontract on a major multi-year commercial project. The owners recognized it as a growth opportunity that could also stretch the business beyond its capacity if they didn’t have a strong understanding of their profitability, labor, and cash flow needs.

  • More than $105 million in sales
  • 20+ employees
  • 5+ years in business
Company Example

Scaling Up with Strategic Financial Support

An established general contracting business was ready to take the next step in its growth plan with the acquisition of a landscape architecture firm in its market. While their in-house accounting services were adequate, they needed the kind of support that would include help with structuring the deal and its financing.

Situation

  • Bookkeeper manages daily accounting
  • Owner has limited financial and accounting knowledge
  • Owner wants to focus on growth, sales and operations – not accounting
  • Same as with the Growth Enablement Plan, plus…
  • Plans for growth
  • Multiple ownership and operation considerations

Needs

  • Keep accounting accurate, timely and prevent fraud
  • Ideas to improve business and financial processes
  • Help and guidance for their bookkeeper
  • Understanding the numbers to make decisions
  • Support for strategic thinking / prevent over-focusing on the day-to-day
  • Keep taxes low and steer clear of the IRS
  • Same as with the Growth Enablement Plan, plus…
  • Help and guidance for the whole internal accounting team
  • Bring solutions for problems

Kirsch Deliverables

  • Quarterly financial oversight: includes a 1-hour meeting with the business owner
  • Review entries in accounting software (e.g. QuickBooks)
  • Make adjustments and resolve discrepancies: errors, accrual entries corrections
  • Record depreciation and payroll adjustments
  • Adjust journal entries
  • Answer bookkeeping questions
  • Strategic tax planning and annual strategy meeting
  • Tax returns for business and owners
  • Same as with the Growth Enablement Plan, plus…
  • Monthly financial oversight: period end close, includes a 1-hour meeting with the business owner
  • Reconcile bank accounts to bank statements and receipts to credit card statements
  • Monitor accounts receivable (AR)
  • Monitor accounts payable (AP) aging to manage cash flow
  • Document fixed assets and record depreciation
  • Prepare profit and loss (P&L) and balance sheet
  • Key metric tracking reporting (performance, sales, customer satisfaction)
  • Track income expenses by job and/or percentage of completion to monitor profitability and cash flow
  • Monthly financial statements
  • Quarterly strategy meetings
  • Financial reporting (Compilation, Review, Audit) for banking and investor requirements
  • Maximize tax deductions: qualified business income (QBI), equipment/first-year bonus depreciation (section 179), business travel, minor repairs, company vehicles, retirement plans (SECURE 2.0), and state sales tax
  • Advanced tax planning for entity structure and multiple business planning

Pricing

  • Starts at $20,000 per year
  • Equivalent to hiring both a CPA firm and fractional CFO
  • Starts at $50,000 per year
  • Equivalent to hiring a CPA firm, fractional controller, and fractional CFO

Additional Service Options

  • Bank and credit card reconciliation
  • Payroll: weekly or biweekly
  • Inventory planning and monitoring
  • Cash flow projections
  • Accounting software clean-up and support
  • Lines of credit
  • Product costing and pricing
  • Return on investment (ROI)

Selling or Transitioning Your Business

The current market presents a golden opportunity for mergers and acquisitions. Planning for the sale or transition of your business should start well in advance of your retirement. Our strategic and highly customized process is constructed around your business and personal financial goals, ensuring a smooth transition. The Kirsch team will help you address complex issues such as concentrated shareholder wealth, the intricacies of family-owned businesses, tax burdens, and succession planning for the next generation.

Construction Accounting News

Grow Your Construction Business

Contact a member of the Kirsch CPA Group team to learn more about what strategic and holistic accounting services can do for your construction business.

Kirsch team

How To Get Started