When looking for an accounting firm that supports the unique and specialized needs of your company, it’s important to ensure that construction falls into the expertise of the accounting team. The CCIFP designation demonstrates the knowledge and expertise to serve construction clients.
Here are just a few aspects to consider regarding accounting firms that have CCIFPs.
Establishes the Depth of Experience Held by Employees
The CCIFP designation covers a robust set of knowledge domains that span many areas of the construction finance sector including income recognition, budget and planning, and risk management. Obtaining this certification shows a depth of knowledge in every aspect of accounting specific to construction.
Offers Bench Strength
Long gone are the days when accountants were only focused on the numbers. Today’s construction accounting professionals are involved with every aspect of financial and operations management.
A conventional accountant has little to no experience dealing with work-in-progress (WIP) schedules, complex revenue recognition rules specific to construction, certified payroll, surety and risk management, workers’ comp, and more.
The unique nature of construction accounting has different standards related to revenue, expenses, and gross profit recognition. Professionals who have earned the CCIFP designation help demonstrate a firm’s understanding of a construction company’s financial needs. These professionals look at the company as a whole while focusing on other areas of business, which helps showcase a deeper understanding of the industry.
Showcases Industry Dedication
A firm with CCIFPs on board shows its dedication to working with construction industry clients. There is value in seeing that an accounting firm has invested both dollars and time into ensuring its people learn as much as they can. The CCIFP can show that a firm believes in the value of its employees and its commitment to the construction industry.
Underscores That the Team’s knowledge Is Current
CCIFPs are required to submit continuing education credits to stay current, and most CCIFPs regularly attend annual conferences and workshops that offer education focused on tax and legal updates. This requirement ensures that the team’s knowledge is up to date.
Demonstrates Ethical Standards
Having a CCIFP on the team offers construction companies an added layer of assurance that their project team is professional, ethical, and knowledgeable having earned a nationally accredited standard. It provides peace of mind that the project’s finances are being managed effectively and efficiently by a certified professional.
Recognized in the Industry
CPA firms work closely with construction teams and their sureties, lawyers, and banks. Knowing that you have a certified team that really knows construction helps in these broader relationships. The CCIFP designation is also one of the criteria used to select the Top 50 Construction Accounting Firms according to Construction Executive, underscoring the importance of the certification and recognition of the firm.
But certification goes well beyond helping a firm win a coveted spot on industry lists. It is a real competitive advantage that highlights the firm’s unique and advanced skill set and in-depth technical know-how in construction finance. Investment in this certification pays dividends in so many ways.
To learn more about the CCIFP designation, visit ccifp.cfma.org.
If you have your CCIFP designation and would like to share your experiences, please reach out to Veronica Whitehead at vwhitehead@cfma.org.
Copyright © 2023 by the Construction Financial Management Association (CFMA). All rights reserved. This article first appeared in March/April 2023 CFMA Building Profits magazine.