Six Questions Construction Contractors Should Ask When Hiring an Accounting Firm

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Are you a construction company owner, CEO or CFO looking to hire an accounting firm?

Many accounting firms specialize in specific kinds of clientele such as doctors, lawyers, corporations and service-based providers. If you are an executive of a construction company, and are considering hiring an accounting firm, you need a firm that truly understands the construction industry and its specialized accounting needs.

Here are 6 critical questions you should ask before making a decision.

Question 1: Have you worked with construction companies or contractors before?

Start by asking about the firm’s history with construction companies. Who have they worked with? What level of experience do they have specific to the industry? You shouldn’t be their first, fifth, or even tenth construction client. They should have a solid current or former construction client base to ensure they have adequate knowledge of the industry.

Question 2: What difference have you made for your construction clients?

Ask about results. Did they make a difference for these clients? Has everyone on their team worked with a construction client before, or are their staff assigned to industry-specific clients? It’s not just about the specialized financial and tax reporting. They should be able to help you analyze all aspects of your business to ensure that your business is operating with your business and personal goals in mind.

Question 3: Does your firm rely on human labor, software, or a mixture of both?

Consider their internal systems and processes. Do they use primarily human labor for accounting, or do they leverage software and systems to ensure greater accuracy? The days of massive binder and files full of paper are over. Your accounting firm should have trained staff who are well versed in using both financial statement and tax software to ensure your engagements are completed efficiently.

Question 4: What verifiable tax savings can you point to for companies like ours?

You’ll want to consider verifiable tax savings they’ve achieved for service-based clients or other construction companies. Ask for proof! Understanding the ever changing tax law is crucial. Your firm should be informing you of these changes and ensuring that you’re utilizing all available benefits.

Question 5: What type of mistakes have you, your bank, or bonding company found in your financial statement and tax returns?

Consider their ability to correct any inconsistencies in financial reporting. If they’ve made mistakes in the past, how did they fix them? Nobody is perfect! Errors should be few and far between, but when they do happen, your firm should own up to it and take the appropriate corrective actions.

Question 6: Consider the relationship, and don’t force one if you’re not getting along!

Finally, and most importantly, consider the actual “chemistry” of your connection. When you hire an accounting firm, they’re going to be all up in your business – literally! Make sure the personalities of you and the team that will be assigned to you jive before you move forward with working together.

If you are looking for construction industry expertise, contact RBTK at info@rbtk-cpa.com or 858.430.0300.