March 3, 2014
BAKER TILLY PUERTO RICO, CPA’s, PSC recognizes that the construction industry is one of the largest segments of the economy. The companies that compete in this industry range in size and sophistication from the “father and son” remodel who operate out of the back of their pickup trucks to multinational contractors who specialize in projects costing millions of dollars and employing hundreds – even thousands – of workers.
Contractors cannot successfully manage their businesses unless they have timely, accurate, financial information about all contracts that are in progress at a given point in time. BAKER TILLY PUERTO RICO, CPA’s, PSC provides a variety of tax, audit, compilation, review and consulting services to clients in the construction industry in order to help them to successfully manage their businesses.
No matter what the need, or size of the construction entity,BAKER TILLY PUERTO RICO, CPA’s, PSC has the necessary expertise to meet the demands of our clients, in a timely fashion, at a reasonable cost.
Our audit objectives always include a verification of contracts completed during the year and those in progress at year end are supported by valid contracts and represent actual work performed by the company. Also, that all contracts billing and costs (both direct and indirect) that were incurred during the year are properly identified, allocated, and recorded in both the company’s general ledger accounts and its detailed contract records, revenue on contracts in progress at year end is correctly measured in accordance with the revenue recognition method required by generally accepted accounting principles, adequate provision and disclosure has been made for estimated losses, if any, on contracts in progress at year end, adequate provision has been made for disputed claims, back charges, change orders, or other disputes or contingencies related to contracts. And, finally that contract-related accounts are properly presented and classified in the financial statements and the accompanying notes provide adequate disclosure of contract-related matters.
Accounting system considerations – our experienced partners and IT consultants can assist in the evaluation and improvement of your accounting systems. Sometimes the accounting system does not match the complexity and sophistication of the contractor’s operations. We are ready to sophisticate your accounting system to a point where all direct costs, including period interest costs, are allocated to individual contract records, and there is a proper by – contract allocation of indirect costs.