Question 1

What is a WIP schedule and why does it matter?

Accepted Answer

A work-in-progress (WIP) schedule reconciles each contract's total value, costs incurred, estimated costs to complete, percentage complete, and billings to date. It matters because it drives how much revenue and profit you recognize under percentage-of-completion, and it reveals over- and under-billings. Sureties and lenders read your WIP closely, so an accurate, well-presented schedule protects both your reported earnings and your bonding capacity.

Question 2

How does ASC 606 affect construction revenue recognition?

Accepted Answer

ASC 606 governs how contractors recognize revenue on long-term contracts, generally over time as work is performed. It requires you to identify performance obligations, allocate the transaction price, account for variable consideration and change orders, and provide specific disclosures. For most contractors this looks similar to traditional percentage-of-completion, but the documentation, contract analysis, and disclosure requirements are more rigorous.

Question 3

Do you help contractors satisfy surety and bonding requirements?

Accepted Answer

Yes. We prepare audits, reviews, and compilations in the format sureties and bonding agents expect, and we present working capital and financial results in a way that supports your bonding line. We also work directly with your surety and agent to answer questions about backlog, job status, and financial trends so your bonding capacity stays strong.

Question 4

Can contractors still use bonus depreciation and Section 179?

Accepted Answer

Yes. Both remain available for qualifying equipment and vehicles, and 100% bonus depreciation has been restored on a permanent basis. Section 179 lets you expense qualifying purchases up to annual limits, while bonus depreciation applies more broadly. The right mix depends on your income, entity structure, and state rules, which is why we plan equipment purchases with tax impact in mind.

Question 5

How do you handle multi-state and prevailing-wage work?

Accepted Answer

We manage the state tax and compliance issues that come with working across jurisdictions, including nexus, income apportionment, and multi-state filing obligations. For public and government projects, we help you account for prevailing-wage and certified-payroll requirements. Serving contractors in all 50 states, we are used to projects that cross state and municipal lines.

Question 6

What size construction companies do you work with?

Accepted Answer

We work with contractors, subcontractors, and builders across a wide range of sizes, from growing single-entity firms to established companies running multiple entities and out-of-state projects. As a Top 200 U.S. CPA firm with a boutique, partner-led approach, we scale the engagement to your needs, whether that is an annual audit, ongoing outsourced accounting, or full CFO-level advisory support.

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Industries: Construction