6 Reasons Construction Business Owners Should Work with a CCIFP

Summary: Construction accounting carries an added level of complexity to general accounting, from job costing and retainage to bonding requirements and multiyear contracts. A Certified Construction Industry Financial Professional (CCIFP) brings specialized expertise to these challenges. This post outlines six areas where a CCIFP-credentialed advisor’s industry-specific knowledge creates value for construction business owners and their financial leadership teams.

What Is a CCIFP?

A CCIFP is a financial professional who has met the standards set by the Certification Division of the Construction Financial Management Association (CFMA). The designation requires demonstrated expertise in construction-specific financial management, including job costing, contract accounting, surety relationships and construction specific tax rules. Working with a CCIFP means your advisor already understands the mechanics of your industry, from day one.

Below are six areas where a CCIFP-credentialed advisor’s specialized knowledge delivers the most value for construction business owners and financial leaders.

1. Choosing the Optimal Revenue Recognition Method

A CCIFP looks beyond the default of percentage-of-completion accounting to evaluate whether the completed contract method or another approach better fits your project mix. From there, a CCIFP helps you determine which projects qualify for alternative methods and the impact each option has on the Company’s taxable income and cash flow.

2. Improving Job Cost Estimates

A CCIFP builds job costing systems that capture labor burden, equipment depreciation and indirect overhead from the start. This gives you an accurate read on margins throughout a project, including early milestones. That accuracy carries through to the final stages, when you still have the most room to adjust pricing and scope.

3. Retainage and Billing Cycles

Retainage held by owners and contractors is a normal part of construction billing, and planning for it protects cash flow. A CCIFP structures billing schedules and cash flow projections to account for retainage, change orders and payment delays, so cash flow stays steady throughout the project.

4. Meeting Surety and Bonding Requirements

Sureties expect financial statements to reflect construction-specific standards, including work in progress (WIP) schedules and appropriate disclosures. Underwriters look closely at trends in working capital, backlog and gross margin fade, and a CCIFP knows how to present those trends clearly and accurately. That clarity helps support strong bonding capacity, even for companies with complex project portfolios.

5. Construction-Specific Tax Opportunities

Depreciation elections, methods of accounting, and state incentive programs all carry rules unique to construction. A CCIFP stays current on construction-specific tax provisions to ensure they are applied proactively on your behalf.

6. Change Orders and WIP

Change order documentation and pricing directly affect the margin built into a project. A CCIFP has the expertise to help you implement controls that protect that margin. These controls will ensure change orders are tracked, billed timely and reflected accurately in your WIP schedule.

The Bottom Line

A CCIFP brings construction-specific expertise to the table and understands the financial realities of your industry.

If your business could benefit from financial guidance built specifically for construction company owners and leadership teams, the Moore Colson Construction team is here to help.

FAQ

How is a CCIFP different from a CPA?

A CPA credential covers general accounting and tax standards across industries. A CCIFP is an additional, construction-specific designation focused on job costing, contract accounting, bonding and surety relationships. Many construction advisors hold both.

How does someone become a CCIFP?

Candidates must meet experience requirements in construction financial management and pass an exam administered by the Certification Division of the Construction Financial Management Association (CFMA) covering risk management, financial reporting, and contract administration.

Do I need a construction-specific accountant, or will a general CPA firm work?

Construction accounting includes enough industry-specific nuance, such as percentage of completion accounting and surety reporting, that a firm with construction-specific expertise typically delivers more accurate and useful guidance.

What accounting services should a construction-focused firm offer?

Look for a firm offering job costing setup, WIP reporting, surety and bonding support, construction-specific tax planning, and financial statement preparation tailored to construction industry standards.

About the Author

Steven Bailey, CPA, CFE, CCIFP, is a Partner in Moore Colson’s Assurance Practice Area with more than 20 years of experience. He leads audit and assurance engagements primarily within the construction, healthcare, technology and transportation industries. 

Robert Lunsford, CPA, CCIFP, is a Senior Manager in Moore Colson’s Assurance Practice Area. Robert leads and manages audit engagements for clients in the construction industry, ensuring compliance with GAAP, GAAS and industry-specific regulations such as percentage-of-completion accounting.