Tax and accounting rules for contractors are unique, which is why you want a firm that understands construction and can help you with not just the basics of percentage of completion (POC) accounting, but with the complex areas as well – for example:

  • Is it ever appropriate to use an accounting method other than POC to account for a construction contract?
  • What is the most advantageous accounting method to use for tax purposes?
  • When can revenue be recognized for unapproved change orders?
  • When is a contract considered complete?
  • How should payments for retainage be considered in the POC accounting method?
  • Do the "look-back" interest rules apply to small contractors?
  • What GAAP/tax differences exist for allocating overhead costs?
  • Are unused materials treated diffrently for GAAP and tax?

At WDC & Associates, we believe that experience results from applying lessons learned to new solutions.