ProAxis Resources for NJ Contractors
Everything ProAxis Tax & Accounting Services has built for home-service contractors and construction businesses — services, deep-dive content, technical definitions, and practical guides. One place to start.
Why Construction Needs a Specialist CPA
Construction is one of the few industries where standard accounting rules must be significantly adapted. A general contractor managing four open jobs at once cannot run their books like a retail store or consulting firm. Each job has different owners, subcontractors, completion timelines, and retainage terms. The revenue recognition methods, cost allocation systems, and financial statement formats used in construction are purpose-built for the industry's project-based structure.
Five tax and accounting rules apply uniquely to construction businesses:
- Percentage-of-completion accounting required by IRC §460 for most long-term contracts spanning more than one tax year.
- WIP (Work-in-Progress) schedules reconciling earned revenue, billed amounts, and over-/under-billings every period — required by sureties and lenders.
- NJ prevailing wage compliance on public-works contracts with payroll documentation requirements separate from federal wage rules.
- Subcontractor 1099-NEC management with TIN verification at vendor onboarding to avoid year-end scrambling.
- Equipment depreciation under Section 179 + bonus depreciation, often paired with cost segregation when contractors own real estate.
ProAxis serves general contractors, specialty subcontractors, residential builders, and home-improvement contractors across NJ, NY, and PA. Each engagement starts with a review of the current chart of accounts, WIP schedule, and subcontractor process — most contractor onboarding identifies $5,000-$25,000 in either missed deductions or incorrectly-classified job costs that affect tax liability.
ProAxis Services for Contractors
Construction Industry CPA Hub
Job costing, WIP schedules, percentage-of-completion accounting, NJ prevailing wage compliance
Bookkeeping for Home-Service Contractors
Niche bookkeeping built around contractor cash flow patterns and 1099-NEC subcontractor management
Tax Planning Hub
Year-round planning including S-Corp election analysis for high-earning contractors
Business Tax Returns (1120-S, 1065)
Entity-level returns with K-1 preparation and NJ BAIT election integration
Payroll Services
Federal 941, NJ-927, plus prevailing-wage payroll compliance for public-works contractors
Key Glossary Terms for Contractors
- Percentage-of-Completion Accounting
Required revenue method for long-term construction contracts (IRC §460)
- WIP Schedule
Work-in-progress reconciliation required for accurate construction financials
- Section 179 Deduction
Immediate expensing of equipment purchases
- Bonus Depreciation
Accelerated first-year depreciation on qualifying assets
- S-Corporation Election
Form 2553 election to reduce self-employment tax for $300K+ net income contractors
- NJ BAIT Election
Pass-through entity tax bypassing federal SALT cap
Full glossary at /resources/glossary/ — 29 NJ tax, federal tax, IRS form, and CPA terms.
Blog Posts & Guides Relevant to Contractors
Why Contractors Choose ProAxis
Construction is one of the few industries where standard accounting rules must be significantly adapted. Job costing, WIP schedules, percentage-of-completion accounting per IRC §460, NJ prevailing wage rules, subcontractor 1099-NEC management, and equipment depreciation all require specialist knowledge that generalist firms typically lack. ProAxis works with general contractors, specialty subcontractors, residential builders, and home-improvement contractors across NJ, NY, and PA.
Ready to Work with a CPA Who Knows Construction?
Schedule a free consultation with ProAxis Tax & Accounting Services.