We’re in the midst of a construction boom. That’s great news for any trade-based businesses like construction companies, electricians, or plumbers, but here’s the thing -- finding the talent to match the demand during these booms can be a huge challenge for any employer. There are just so many variables to weigh out. How many people can you employ during these booms? Can you keep a consistent level of quality in your work? How will these extra employees affect your bottom line once the boom inevitably dries up?
Accrual Methods of Construction Accounting
Choosing a permissible method of accounting for tax purposes for your construction business involves classifying your contracts and business. As your construction business grows and changes, you may benefit from using a different method of accounting. You should review the following three steps every year to ensure that you are using the right method of accounting for your construction contracts.