Real Estate & Construction

Location may be everything in real estate, but we would argue that knowledge and savvy business intelligence are just as critical. Success in real estate and construction businesses is far more complex than the simplistic notion of bricks and mortar. There are the risks – cost overruns, market timing and material and workforce shortages – as well as the opportunities – improved cash flows, better cost allocation, prudent tax planning – all of which can have a significant impact on profitability. From this perspective, the accountant with whom you partner can be equally as important as the location in which you invest. For numerous real estate and construction companies, PKM is that partner.

In addition to standard audit and tax compliance services, PKM works with our real estate/construction clients on specialized accounting and tax projects. These projects include tax cost segregation studies and consultation regarding the consolidation of variable interest entities under the provisions of FIN 46. Tax cost segregation studies offer clients a proactive low-risk, high-return way to quickly recover capital investments and enhance cash flow. Consolidation of variable interest entities under FIN 46 is a complicated topic. We work with clients to provide an analysis of an organization’s variable interest entities (e.g. home building and development operations and joint ventures created for asset protection, limitations on bonding capacity and/or income and estate tax planning purposes) to determine if the company should include the assets, liabilities and other activities of the variable interest entities in their consolidated financial statements.

Our real estate/construction industry knowledge has been acquired through formal training and experience. This institutional knowledge base is enhanced by our membership in ProfitCrew™, an association of accountants and business advisors dedicated to helping real estate/construction companies build profitable businesses. Through ProfitCrew, we have access to additional knowledge and expertise from some of the top real estate/construction industry advisors throughout North America. ProfitCrew also provides its members with highly-specialized technical resources. Click here to learn about a ground-breaking group of accounting firms whose deep expertise in construction and real estate can help you run a more profitable business, watch this 3-minute message from Porter Keadle Moore, LLP.

Three important ProfitCrew connections of note include a partnership with industry consultant Charles Vander Kooi, known in the industry as the "construction evangelist" for his hard-hitting preaching advice for contractors; Dr. Thomas Ratcliffe, Director Emeritus of the School of Accountancy at Troy University; and academic leaders at Clemson University’s Construction Science and Management Department. These partnerships help clients address critical success factors such as productivity, bidding strategies, staffing and more.

In cooperation with Clemson University’s Department of Construction Science and Management and the National Association of Women in Construction (NAWIC) Education Foundation, ProfitCrew members participate in two specialized training and certification programs: The Construction Industry Technician (CIT) program, and Intermediate Construction. Both of these programs give participants a contractor’s perspective, which yields a clearer vision for the challenges and opportunities companies encounter in running and growing a business. This augments training obtained annually at the national AICPA Construction Conference and ProfitCrew member meeting, both of which keep participants current on industry hot topics and emerging issues.

PKM has three committee-serving members of ProfitCrew. Tax Manager Adam Polakov sits on the association’s planning committee. Audit Principal Arvil Stanford serves on the membership committee and Director of Marketing Laura Snyder chairs the ProfitCrew marketing committee. The firm is also a member of the Greater Atlanta Home Builders Association and an active participant on the association’s event planning committee.