Construction Accounting Tips for San Jose Contractors - Job Costing & Tax Strategies

Essential Construction Accounting Tips for San Jose Contractors and Builders

Running a construction business in San Jose? Struggling with job costing and profitability tracking? Wondering how to get your books ready for bonding? Looking for construction-specific tax strategies that actually save you money?

You're in the right place.

Why San Jose Contractors Need Specialized Accounting Practices

Here's what we hear constantly from construction contractors in San Jose: "My accountant gives me financial statements, but they don't tell me which jobs are making money. I can't get bonding because my books aren't formatted correctly. And I feel like I'm overpaying in taxes, but nobody's showing me construction-specific strategies to reduce them."

Sound familiar?

The problem isn't that you have a bad accountant. The problem is that construction accounting is fundamentally different from other small business accounting, and most CPAs don't specialize in construction.

Construction businesses need job costing by project. They need financial statements formatted for surety companies. They need to track retainage, manage draw schedules, and handle complex payroll requirements like prevailing wage and certified payroll. And they need tax strategies specific to contractors—equipment depreciation, percentage-of-completion revenue recognition, and construction-specific deductions.

Generic small business accounting doesn't address any of this.

That's exactly why we put together this comprehensive guide.

Construction Accounting Best Practices for San Jose Builders

We're Asnani CPA Tax & Accounting, and we specialize in construction accounting for contractors and builders throughout San Jose, the South Bay, and the entire Bay Area.

We wrote this guide to share the accounting best practices, job costing strategies, and tax tips that every San Jose construction contractor needs to know. Whether you're a general contractor, specialty subcontractor, remodeling company, or commercial builder, these practices will help you build a more profitable, scalable business.

And if you realize while reading this that you need expert construction accounting help? We'd be honored to serve your business. Schedule a free construction accounting analysis to discuss your specific situation.

Let's dive into the essential accounting practices every San Jose contractor needs to implement.

Job Costing Fundamentals for San Jose Contractors

Job costing is the foundation of construction accounting. Here's how to do it right:

Why Job Costing Matters for Construction Profitability

Unlike most businesses that look at company-wide profitability, construction contractors need to understand profitability at the project level.

Why this matters:

That kitchen remodel in Willow Glen might have been profitable, but the commercial build-out in Downtown San Jose might have lost money—even if your overall company showed a profit for the quarter.

Without job costing, you don't know:

• Which types of projects are most profitable
• Which are bleeding cash
• Whether you're bidding accurately
• Where you're over or under budget on active projects
• How to improve estimating for future jobs

Many San Jose contractors discover—once they implement proper job costing—that they've been losing money on certain project types for years. They just didn't know it because they were only looking at company-wide numbers.

Setting Up Job Costing in QuickBooks

If you use QuickBooks (which most San Jose contractors should), proper job costing requires correct setup:

Create a Customer/Job for Every Project: Don't just have one entry for "ABC Property Management." Create separate jobs for each project: "ABC Property - Building A TI," "ABC Property - Building B Exterior," etc.

Use Job Costing Features: QuickBooks can track all costs and revenue by job if you set it up correctly. Every expense, every hour of labor, every material purchase should be assigned to a specific job.

Set Up Cost Codes: Within each job, use categories (QuickBooks calls them "classes" or you can use items) to track different cost types:

• Direct labor
• Materials
• Subcontractors
• Equipment
• Job overhead

Track Time by Project: If you have hourly employees, track their time by project. This ensures labor costs are allocated correctly.

Use Purchase Orders: For material purchases and subcontractor agreements, use purchase orders that are linked to specific jobs.

Proper setup takes a few hours but provides years of valuable data. Our construction bookkeeping services always include proper QuickBooks job costing setup for San Jose contractors.

Creating Meaningful Job Cost Reports

Once your system is set up correctly, you can generate reports that actually help you run your business better:

Job Profitability Detail Report: Shows income and expenses for each job, calculating gross profit and margin. This is your most important report. Run it monthly for active jobs and after completion for every project.

Job Estimates vs. Actuals: Compares what you estimated for costs vs. what you actually spent. This is critical for improving future estimates.

Work in Progress (WIP) Report: Shows all active projects with contract value, costs to date, estimated costs to complete, and projected profit. Essential for understanding your backlog and future profitability.

Time and Materials by Job: Detailed breakdown of where labor hours and materials went on each project.

These reports should drive business decisions. If certain project types consistently underperform, stop bidding them. If certain cost categories consistently exceed estimates, adjust your bidding.

Common Job Costing Mistakes San Jose Contractors Make

Even contractors who think they're doing job costing often make these mistakes:

Mistake #1: Not tracking overhead allocation Direct costs are easy—the lumber, the concrete, the subcontractors. But what about your truck expenses, office staff, insurance, and utilities? These overhead costs need to be allocated to jobs, or you're not seeing true project profitability.

Mistake #2: Inconsistent coding If sometimes you code material purchases to the job and sometimes to a general "materials" account, your job costs are unreliable.

Mistake #3: Not reconciling job costs monthly You need to close out job costs monthly and reconcile them against your books. Otherwise errors accumulate and your job profitability reports are wrong.

Mistake #4: Ignoring change orders When project scope changes, you need to track the additional costs and revenue separately. This shows you whether change orders are profitable.

Mistake #5: Not analyzing completed jobs After every project, analyze what went right and wrong financially. Use this data to improve future estimates and project management.

Professional construction accounting eliminates these mistakes by implementing proper systems and maintaining them consistently.

Financial Statements for Bonding - San Jose Contractors

If you want to grow your San Jose construction business beyond small residential projects, you need bonding. Here's how to prepare:

Understanding Surety Requirements

Surety companies that issue performance and payment bonds have specific requirements for how your financial statements must be prepared.

What surety companies evaluate:

Working Capital: Current assets minus current liabilities. Shows you have enough liquid resources to handle project cash flow. Surety companies typically want to see working capital of at least 10% of your annual revenue.

Current Ratio: Current assets divided by current liabilities. Shows liquidity. A ratio of 1.5:1 or higher is typically required.

Debt-to-Equity Ratio: Total liabilities divided by owner's equity. Shows financial leverage. Ratios under 3:1 are generally preferred, under 2:1 is better.

Profitability: Net profit as a percentage of revenue. Shows you make money consistently.

Backlog: Value of signed contracts not yet completed. Shows future revenue.

If your financial statements don't clearly show these metrics, or if the metrics don't meet standards, you won't get bonding.

Work in Progress (WIP) Schedule

The WIP schedule is the most important document for bonding, yet many San Jose contractors don't prepare it correctly (or at all).

What a WIP schedule shows:

For each active project:

• Contract value (including approved change orders)
• Costs incurred to date
• Estimated costs to complete
• Total estimated costs
• Estimated gross profit
• Gross profit percentage
• Revenue earned to date (using percentage-of-completion)
• Revenue billed to date
• Over/under billing amount

This schedule reconciles your balance sheet (showing overbilling or underbilling as liabilities or assets) and demonstrates that you're tracking project progress properly.

Surety underwriters scrutinize the WIP schedule. Errors or inconsistencies are red flags that can kill your bonding application.

Our construction accounting services include proper WIP schedule preparation for San Jose contractors seeking bonding.

Improving Your Bonding Capacity

Want to qualify for larger bonds? Here are strategies San Jose contractors can implement:

Maintain Clean Books: Sloppy accounting kills bonding applications. Keep your books up-to-date, reconciled monthly, and professionally prepared.

Improve Working Capital: Pay down short-term debt, convert assets to cash, negotiate better payment terms with suppliers, and maintain cash reserves.

Show Consistent Profitability: Surety companies want to see 3+ years of profitable operations. Avoid loss years if possible.

Strengthen Your Balance Sheet: Increase owner's equity through retained earnings or capital contributions. Reduce unnecessary debt.

Document Strong Management: Show you have experienced project managers, proven systems, and scalable operations.

Build Relationships with Surety Agents: Work with a surety agent who specializes in construction. They can guide you through underwriting requirements.

Getting bonding is as much about financial presentation as financial reality. Professional construction CPAs know how to present your financials in the best possible light while maintaining complete accuracy.

Construction-Specific Tax Strategies for San Jose Contractors

Generic tax advice doesn't serve contractors well. Here are tax strategies specific to construction:

Section 179 Deduction for Equipment

Construction contractors invest heavily in equipment—trucks, excavators, lifts, tools, and more. Section 179 allows you to deduct the full purchase price of qualifying equipment in the year you buy it, rather than depreciating it over several years.

2024 Section 179 limits:

• Maximum deduction: $1,220,000
• Phase-out threshold: $3,050,000 in annual purchases

This is huge for San Jose contractors. Instead of depreciating a $50,000 excavator over 5 years ($10,000/year), you deduct the entire $50,000 immediately.

What qualifies:

• Vehicles over 6,000 lbs GVWR (most work trucks and vans)
• Construction equipment (excavators, loaders, lifts)
• Trailers
• Tools and machinery
• Computers and office equipment

Strategic planning: If you're planning major equipment purchases, timing matters. Buying in December vs. January can shift the deduction between tax years. Plan strategically based on your income.

Our tax planning services for contractors include equipment depreciation strategy to maximize deductions while maintaining optimal tax positions year over year.

Bonus Depreciation

In addition to Section 179, bonus depreciation allows first-year deductions on qualifying property. For 2024, bonus depreciation is being phased down but still provides significant benefits.

Key differences from Section 179:

• No dollar limit (unlike Section 179's $1.22M cap)
• Applies to new and used property
• Not limited by taxable income

For San Jose contractors making large equipment investments, combining Section 179 and bonus depreciation can result in enormous first-year deductions.

Vehicle Expenses for Contractors

Most San Jose contractors have significant vehicle expenses—work trucks, personal vehicles used for business, equipment transportation.

Two methods for deducting vehicle expenses:

Standard Mileage Rate:

• 2024 rate: 67 cents per business mile
• Simple recordkeeping
• Good for vehicles with high business mileage and lower operating costs

Actual Expense Method:

• Deduct actual costs: gas, maintenance, repairs, insurance, registration, depreciation
• More complex recordkeeping
• Better for expensive vehicles with high operating costs

For most contractor work trucks, actual expenses provide larger deductions. But you must track expenses meticulously and calculate the business-use percentage.

Special rules for heavy vehicles: Trucks and vans over 6,000 lbs GVWR have more favorable depreciation rules. Many contractor trucks qualify.

Revenue Recognition Methods

Construction contractors can choose between two methods for recognizing revenue for tax purposes:

Completed-Contract Method: Recognize all revenue and profit when the project is completed. This defers taxes until completion.

Percentage-of-Completion Method: Recognize revenue proportionally as the project progresses based on costs incurred vs. estimated total costs.

Strategic considerations:

For smaller San Jose contractors, completed-contract offers significant tax deferral. If you have long-duration projects, you can defer income (and taxes) until completion.

For larger contractors or those seeking bonding, percentage-of-completion is often required for financial statement purposes (GAAP). You can still use completed-contract for tax purposes in many cases, but the accounting gets complex.

Our construction tax services help San Jose contractors select and implement the optimal revenue recognition strategy.

Maximizing Construction-Specific Deductions

Contractors have numerous deductible expenses that generic accountants often miss or undervalue:

Tools and Equipment: Both large equipment and small tools are fully deductible. Keep receipts for everything.

Vehicle Expenses: Trucks, work vans, mileage to job sites and suppliers—all deductible with proper documentation.

Licensing and Compliance: Contractor licenses, bonds, insurance (liability, workers' comp, equipment), safety training—all deductible.

Job Site Supplies: Safety equipment, temporary power, portable toilets, dumpsters, signage—all deductible as job costs.

Home Office: If you have a dedicated office space in your San Jose home for estimating, planning, and administration, this can be a significant deduction. You can deduct a portion of mortgage/rent, utilities, insurance, and maintenance.

Continuing Education: Licensing renewals, safety certifications, trade skills training, industry conferences—all deductible.

Technology and Software: Estimating software, project management tools, accounting software, computers, tablets, smartphones—all deductible for business use.

Professional Fees: Your CPA, attorney, consultants, bonding agents—all deductible.

Proper construction bookkeeping ensures all these expenses are captured and categorized correctly for maximum tax deductions.

S-Corporation Strategy for San Jose Contractors

One of the most powerful tax strategies for profitable contractors is S-corporation election.

How it works:

As a sole proprietor or standard LLC, you pay self-employment tax (15.3%) on all business profit—even profit left in the business.

With an S-corporation, you split income between salary and distributions. You only pay employment taxes on the salary. Distributions are not subject to self-employment tax.

Example for a San Jose contractor:

• Annual profit: $150,000
• As sole proprietor: $22,950 in self-employment tax
• As S-corp (with $90,000 salary, $60,000 distribution): $13,770 in employment tax
• Annual tax savings: $9,180

The higher your profit, the more you save. San Jose contractors making over $75,000 in profit should seriously consider S-corp status.

Trade-offs to consider:

• Must run payroll (adds cost and complexity)
• Must file additional tax return (Form 1120-S)
• Must maintain corporate formalities
• Salary must be "reasonable" for IRS purposes

For most profitable San Jose contractors, the tax savings far exceed the additional costs and complexity.

We help contractors analyze whether S-corp makes sense, handle all setup, and manage everything ongoing including optimal salary determination.

Contractor Payroll Best Practices for San Jose

Construction payroll is uniquely complex. Here's what San Jose contractors need to know:

Prevailing Wage Compliance

If you work on public works projects in California, you must comply with prevailing wage laws.

What this means:

• Pay workers at least the prevailing wage rate for their classification
• Maintain certified payroll records with specific required information
• Submit certified payroll reports to the project awarding body
• Post required notices on job sites
• Maintain records for at least 3 years

Penalties for non-compliance are severe:

• Back wages owed to workers
• Forfeitures up to $200 per day per worker
• Debarment from future public works projects
• Criminal penalties in extreme cases

Many San Jose contractors avoid public works entirely because prevailing wage compliance seems daunting. But with proper systems, it's manageable—and public works projects can be very profitable.

Our payroll services for contractors include full prevailing wage compliance, certified payroll reporting, and documentation.

Worker Classification for Contractors

California's AB5 law made worker classification extremely strict. The "ABC test" presumes someone is an employee unless you can prove all three factors:

A: The worker is free from control and direction in performing work

‍B: The worker performs work outside the usual course of your business

‍C: The worker is customarily engaged in an independently established trade or business

This is very hard to meet for construction work. Most workers on your San Jose job sites will be employees, not independent contractors.

Why classification matters:

Misclassifying employees as contractors creates enormous liability:

• Back payroll taxes and penalties
• Back overtime and minimum wage owed
• Workers' compensation premiums
• Unemployment insurance liability
• Potential lawsuits for misclassification

The EDD (California's Employment Development Department) audits construction companies aggressively. Don't guess on worker classification.

When true independent contractor status works:

Specialized trades who have their own business, own equipment, carry their own insurance, work for multiple general contractors, and have their own contractor licenses can legitimately be independent contractors.

But if you're directing their work, providing materials or equipment, they work primarily for you, and they don't have their own established business—they're probably employees.

Workers' Compensation for San Jose Contractors

California requires workers' compensation insurance for virtually all employees. Construction has some of the highest workers' comp rates.

Key points for San Jose contractors:

Classification Codes Matter: Different trades have different workers' comp rates. Misclassifying workers can result in huge premium adjustments during audits.

Annual Audits: Workers' comp carriers conduct annual payroll audits. Accurate payroll records are essential.

Owner Exemptions: Sole proprietors and some corporate officers can opt out of workers' comp coverage for themselves, reducing costs.

Certificate Requirements: You need current workers' comp certificates for bonding and to work on many projects.

1099 Subcontractors: If you hire subcontractors (true independent contractors), verify they have their own workers' comp. Otherwise, you're liable for their workers' comp costs.

Proper payroll management ensures accurate classification and documentation to minimize workers' comp costs and audit problems.

California Payroll Tax Complexity

California construction payroll involves numerous taxes and filings:

State Taxes:

• Employment Training Tax (ETT)
• Unemployment Insurance (UI)
• State Disability Insurance (SDI)
• California Personal Income Tax withholding

Federal Taxes:

• Federal income tax withholding
• Social Security and Medicare (FICA)
• Federal unemployment (FUTA)

Deposit Schedules: Payroll taxes must be deposited either monthly or semi-weekly depending on your history. Missing deadlines results in severe penalties.

Quarterly and Annual Filings: Form 941 (federal quarterly), Form 940 (federal annual), DE9 and DE9C (California quarterly), plus annual W-2s and reconciliation forms.

Most San Jose contractors should outsource payroll. The compliance burden is too high and the penalties for mistakes too severe to handle it in-house.

Our full-service payroll manages everything for San Jose contractors—calculating pay, processing payments, depositing taxes, filing all required forms, and handling workers' comp reporting.

Cash Flow Management for San Jose Contractors

Construction businesses face unique cash flow challenges. Here's how to manage them:

Understanding the Cash Flow Cycle in Construction

Unlike retail businesses that collect payment immediately, contractors often have significant delays between incurring costs and receiving payment.

Typical construction cash flow cycle:

1. Win a project and sign contract
2. Purchase materials and supplies
3. Pay labor and subcontractors
4. Submit payment application based on work completed
5. Wait for payment (often 30-60 days)
6. Receive partial payment
7. Repeat monthly until project completion
8. Wait for final payment and release of retainage

This creates ongoing cash flow pressure. You're constantly paying expenses before you receive revenue.

Managing Retainage

Retainage is the percentage of payment (typically 5-10%) held back until project completion. This is standard in construction but creates cash flow challenges.

Example: On a $500,000 project with 10% retainage, $50,000 is held until the end. If the project takes 6 months, you've effectively provided a $50,000 interest-free loan to the project owner.

Strategies to manage retainage:

• Negotiate lower retainage percentages when possible
• Request partial release of retainage at project milestones
• Ensure retainage is released promptly at completion
• Factor retainage timing into cash flow projections
• Consider invoice factoring or construction lines of credit if needed

Progress Billing and Draw Schedules

Proper billing practices improve cash flow significantly:

Bill Promptly: Don't wait until the end of the month. Submit payment applications as soon as you hit billing milestones.

Bill Accurately: Ensure your billing matches actual work completed. Overbilling creates problems. Underbilling leaves money on the table.

Follow Up on Payments: If payment is late, follow up immediately. Construction payment deadlines have legal significance in California.

Use Preliminary Notices: In California, send preliminary notices (20-day notices) on most private projects. This protects your mechanic's lien rights if payment problems arise.

Track Draw Schedules: For projects with defined payment schedules, track against the schedule to ensure timely submissions.

Building Cash Reserves

Every San Jose contractor should maintain cash reserves for several reasons:

Weather and Seasonal Variations: Construction activity varies with weather and seasons. Reserves help you weather slow periods.

Project Gaps: Delays between projects happen. Reserves allow you to maintain your team.

Unexpected Expenses: Equipment breakdowns, warranty callbacks, project overruns—reserves provide a cushion.

Bidding and Mobilization: Winning new projects often requires upfront costs before revenue begins.

How much should you have? A general rule for contractors is 3-6 months of operating expenses in reserves. For a business with $40,000/month in fixed costs, that's $120,000-$240,000.

Start smaller if needed, but make building reserves a priority.

Technology and Systems for San Jose Contractors

Modern construction accounting requires modern tools. Here's what you need:

QuickBooks for Construction

QuickBooks Desktop Premier Contractor Edition or QuickBooks Online Plus are the minimum for proper construction accounting.

Essential features for contractors:

• Job costing capability
• Progress invoicing
• Customer/Job tracking
• Class tracking (for cost categories)
• Estimate creation and tracking
• Purchase orders linked to jobs

Add-ons that help: QuickBooks integrates with numerous construction-specific tools for estimating, project management, and time tracking.

Our construction bookkeeping services include QuickBooks setup, training, and ongoing maintenance optimized for San Jose contractors.

Project Management Integration

Your accounting software should integrate with your project management tools. This ensures time tracking, material purchases, and subcontractor costs flow automatically into job costing.

Popular construction PM software:

• Procore
• Buildertrend
• CoConstruct
• Foundation
• Fieldwire

Integration eliminates double-entry and improves accuracy.

Time Tracking Solutions

Accurate labor cost tracking requires good time tracking systems.

Options for contractors:

• Mobile time tracking apps (TSheets, ClockShark, etc.)
• Biometric time clocks for job sites
• GPS-enabled tracking for field crews

Time tracking integrates with payroll, flows into job costing, and provides documentation for prevailing wage compliance.

Document Management

Construction generates enormous amounts of paperwork—contracts, change orders, submittals, RFIs, invoices, lien releases, certified payroll records.

Why digital document management matters:

• Quick retrieval during disputes
• Audit trail for compliance
• Easy sharing with sureties and lenders
• Protection against loss (fire, theft, etc.)
• Accessibility from anywhere

Cloud-based solutions (Dropbox, Google Drive, Box, or construction-specific systems) ensure documents are secure, backed up, and accessible.

When San Jose Contractors Should Get Professional Help

You can't do everything yourself. Here's when contractors should outsource accounting:

Your Books Don't Show Job Profitability

If you can't easily see which projects made money and which lost money, you need better accounting.

Without accurate job costing, you're bidding blind. You might be consistently losing money on certain project types without realizing it.

Professional construction accounting implements proper job costing systems that show project-level profitability.

You Can't Get Bonding

If surety companies are declining your bonding applications or offering lower capacity than you need, the problem is usually your financial statements.

Either the financials don't meet underwriting standards, or they're not formatted correctly to highlight your strengths.

Our construction CPA services include financial statement preparation specifically formatted for bonding applications.

You're Spending Too Much Time on Accounting

If you or your office manager are spending 10+ hours per week on bookkeeping, invoicing, bill payment, and accounting tasks, that's time not spent on estimating, project management, or business development.

Calculate your time cost: What's your time worth? $75/hour? $150/hour?

If you're spending 10 hours/week at $100/hour value, that's $52,000/year in opportunity cost—far more than professional accounting services cost.

Tax Time Is Always Chaotic

If every April is a scrambling mess to get information to your CPA, and your tax return shows you paid more than expected, you need better systems and proactive tax planning.

Reactive tax preparation is expensive. Proactive tax planning saves thousands annually.

You're Growing and Need Better Systems

If you're moving from small residential jobs to larger commercial projects, adding crews, or pursuing bonded work, your accounting systems need to scale with you.

Don't wait until you're in the middle of growth to upgrade. Get proper systems in place now.

Serving Contractors Throughout the San Francisco Bay Area

While this guide focuses on San Jose, we serve construction contractors throughout the entire Bay Area—from San Francisco to Oakland, from Menlo Park to Fremont, from San Mateo to Milpitas.

Whether you're a general contractor, specialty subcontractor, remodeling company, or commercial builder anywhere in the South Bay or broader Bay Area, we provide expert construction accounting services.

We also serve other industries beyond construction:

Tech Startups: Specialized accounting for tech startups including GAAP compliance and R&D tax credits.

Landscaping Contractors: Similar to construction, landscaping contractors need job costing and contractor-specific tax strategies.

Digital Agencies: Accounting for agencies and freelancers with project-based profitability tracking.

Small Businesses: Comprehensive bookkeeping, payroll, and tax services for Bay Area businesses.

Take Action on Your Construction Accounting

We've covered essential construction accounting practices—from job costing to bonding to tax strategies. Here's what to do next:

Assess Your Current Situation

Be honest about your San Jose construction business's accounting:

• Can you easily see profitability by project?
• Are your books formatted for bonding applications?
• Are you implementing construction-specific tax strategies?
• Is your payroll compliant with California's complex requirements?
• Do you have clear cash flow visibility?

If you answered "no" to any of these, it's time to upgrade your construction accounting.

Implement Basic Best Practices

Even if you're not ready for professional help, implement these fundamentals:

• Set up proper job costing in QuickBooks
• Run job profitability reports monthly
• Create a WIP schedule for active projects
• Document all vehicle and equipment expenses
• Plan quarterly estimated taxes strategically

Consider Professional Construction Accounting

If your San Jose construction business generates over $500,000 in revenue, you should strongly consider professional construction accounting services.

The benefits far exceed the costs:

• Accurate job costing shows which projects are profitable
• Properly formatted financials qualify you for bonding
• Construction-specific tax strategies save thousands annually
• Professional payroll management eliminates compliance risks
• You save 10+ hours per week for estimating and project management

Get a Free Construction Accounting Analysis

We'd be honored to help your San Jose construction business. Schedule a free construction accounting analysis where we'll:

• Review your current job costing and financial statement preparation
• Identify opportunities to improve bonding capacity
• Show you construction-specific tax strategies you're missing
• Provide a clear proposal for how we can help

There's no pressure and no obligation. We want to meet San Jose contractors and show them how proper construction accounting transforms their business.

Why San Jose Contractors Choose Asnani CPA

We specialize in construction accounting and serve contractors throughout San Jose, the South Bay, and the entire Bay Area. Here's why San Jose contractors choose us:

Construction Specialization: We don't dabble in construction accounting—it's a core focus. We understand job costing, bonding, contractor tax strategies, and prevailing wage compliance.

Integrated Services: We handle your bookkeeping, payroll, tax preparation, and provide CFO guidance—all from one team that understands construction.

Bonding Support: We prepare financial statements specifically formatted for surety companies and help contractors improve their bonding capacity.

Proactive Tax Planning: We implement construction-specific tax strategies that save thousands annually, not just file returns in April.

California Expertise: We understand California's complex requirements for contractors—prevailing wage, workers' comp, EDD compliance, and more.

Never Too Busy: Unlike massive firms handling thousands of returns, we limit our client roster so we're always available—even during tax season.

Whether you're a general contractor, framing contractor, plumbing or electrical subcontractor, remodeling company, or commercial builder in San Jose or anywhere in the Bay Area, we have the expertise to help you build a more profitable, scalable business.

Contact us today to discuss your San Jose construction accounting needs.

Asnani CPA Tax & Accounting - Specializing in construction accounting, job costing, bonding support, and contractor tax strategies for San Jose builders and contractors throughout the San Francisco Bay Area. Also serving tech startups, landscaping contractors, digital agencies, and small businesses across all industries.

‍