The construction industry is one of the largest segments of the American economy. It employs more people, contributes more to the gross national product, and consumes more raw materials than any other single industry.

This segment of the economy has also spawned related industries that would not exist if not for the construction industry. Companies that manufacture and deliver the raw materials used by contractors, provide financing for new projects, guarantee completion of projects by issuing various types of bonds, and provide a host of other services specifically to the construction industry, contribute to the prominence of this industry in the overall economy.

Unfortunately, there is also an unusually high rate of failure among construction contractors due to a number of factors. Some of the most common causes for the failure of construction contractors include:

  • Periodic downturns in the overall economy.
  • Inability to adequately estimate project profitability.
  • Insufficient billing procedures.
  • Lack of an adequate accounting system.
  • Significant debt.
  • Expanding into new types or specialties of construction.
  • No formal continuity plan.
  • Expanding too quickly in volume or in project size.

Contractors cannot successfully manage their businesses unless they have timely and accurate financial information about completed contracts and those in process. DOGRA CPA LLC provides a variety of tax, audit, compilation, review, and consulting services to clients in the construction industry.