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?