Construction and Real Estate Services
With 150 construction-specific CPAs and more than 1,600 clients in Eide Bailly’s Construction and Real Estate practice, our team is a proven leader in the industry. We were also ranked #9 as a Top 50 Construction Accounting firm in 2020 by Construction Executive magazine. We have a strong history of helping our clients save money and make smart business decisions.
A strong accounting function can provide valuable insights about a construction company’s operations and can help minimize risks. Our team of advisors are passionate about the industry they represent and strive to help businesses reduce their tax burden, stay compliant and build a solid financial future. In addition to providing professional services that you would expect from a CPA firm, we help our clients with many other services to position them for success.
The day-to-day issues that arise in your business can easily take up most of your time. But if you are operating your business based only on financial statements, you are missing out on significant insights that can help drive significant growth.
Think of your data as a strategic asset. Businesses tend to operate in silos, and it’s important to understand how helpful accounting can be for operations, for the people out on the jobsite, and to aid in better decision-making. Without good data analytics, operating your construction accounting can lead to a breakdown of communication and missed opportunities.
Construction Cost Audit Services
As the construction industry continues to push for the use of Construction Manager at Risk (CMAR) contracts with a gross maximum price (GMP), there is an increased need to understand exactly how these contracts are structured. It’s important to feel confident in your CMAR contracts.
Each CMAR contract is unique with its own set of cost “pools” that come with their own compliance attributes, which can get complex. In addition, the structure of these contracts has the potential to incentivize the inflation of certain costs by the construction manager.
Our construction cost audit services can customize an “audit” of your contracts and ensure they are compliant, and you understand how they are structured. You’ll receive an easy-to-understand report to help you feel confident in your contracts.
Cost Segregation Study
Your real estate assets may have hidden value. Your building is a key asset, and with any major investment, you want to get the best return and reduce your tax burden. But do you know how you can:
- Maximize your return?
- Reduce your taxes and increase your cash flow?
- Accelerate the depreciation deductions of your building's assets?
Through a cost segregation study, you can accomplish all three of these goals. The study examines the assets of your building and identifies those that can be depreciated over different and faster recovery periods than if they remained classified as residential real property (27.5 years) or nonresidential real property (39 years). For example, some assets can be categorized as land improvements (15 years) or items whose sole purpose is not for the operation and maintenance of the building but for equipment use (5-7 years).
Our cost segregation work is done by a qualified team of cost segregation specialists with extensive construction and tax backgrounds. We complete a thorough site visit, review the building plans, and analyze cost detail for the building to determine what assets can be reclassified to shorter depreciable recovery periods. We'll work closely with you throughout the process to ensure you are getting the greatest benefit.
We Can Help
Eide Bailly is proud to be recognized as a leader in the construction and real estate industry. We are passionate about continuing to serve our clients and build their business for success.