--- title: "Real Estate and Construction" url: "https://www.lbmc.com/industries/real-estate-construction/" description: "Real estate and construction clients receive tailored services from financial reporting, acquisitions, cost segregation, to tax credits." site: "LBMC" type: "Page" published: "2025-11-14" updated: "2026-07-31" --- [Home](https://www.lbmc.com/) » [Industries Served](https://www.lbmc.com/industries/) » Real Estate and Construction # Real Estate and Construction Accounting and Advisory Services Real estate and construction companies operate in a high-stakes environment where project timelines, capital investment, and regulatory requirements intersect. From managing cash flow across projects to navigating complex tax strategies and compliance demands, success depends on having the right financial and operational foundation in place. LBMC works with developers, contractors, investors, and real estate operators to help manage risk, improve profitability, and support long-term growth. With decades of experience and a full range of accounting, tax, advisory, and technology services, our team provides practical guidance that aligns with how your business actually operates. ### Questions About Our Services? Whether you’re navigating change, planning for growth, or addressing operational challenges, our team helps you determine the right strategy for your business. Talk to an Advisor ## Where Support Matters Most in Real Estate and Construction Real estate developers and construction firms operate under constant financial pressure—from rising material and labor costs to shifting interest rates and complex project timelines. At the same time, evolving accounting standards and multi-entity structures add layers of reporting and compliance requirements. While each segment has unique challenges, both require clear financial visibility, disciplined processes, and proactive planning to stay on track and protect margins. - Revenue recognition complexity under ASC 606 for long-term construction contracts - Lease accounting under ASC 842 for property portfolios and equipment leases - Cost segregation and accelerated depreciation strategies to improve cash flow - Multi-entity and multi-state tax compliance across project and ownership structures - Cash flow management across project timelines, draws, and development phases - Internal controls and fraud prevention in construction billing and job costing - Surety bonding requirements and financial statement expectations for contractors - Workforce management, including prevailing wage compliance and certified payroll ## Featured Webinar: One Big Beautiful Bill: What You Don't Know (Yet) The One Big Beautiful Bill Act (OBBB) introduces potential tax and policy changes that may affect real estate developers and construction firms, especially around depreciation, tax credits, and project financing. Changes to incentives, compliance requirements, and capital investment rules could influence how projects are structured and how returns are realized. For businesses managing long-term projects and tight margins, even small shifts can impact cash flow and tax planning decisions. Staying ahead of these changes helps reduce risk and uncover opportunities. Get a clear breakdown of what changed and what it means for your business. Watch our webinar to hear directly from our tax experts on how to prepare, where risks may arise, and what opportunities to consider. ![One Big Beautiful Bill: What You Don't Know (Yet)](https://www.lbmc.com/wp-content/uploads/2026/04/maxresdefault-1024x576.webp) **Key takeaways:** - Potential changes to depreciation, credits, and investment incentives may impact project profitability - New requirements could affect compliance, reporting, and deal structuring decisions - Early planning can help optimize tax strategy and avoid surprises [Watch the Webinar](https://www.youtube.com/watch?v=Fq00y--kBHw) ## Real Estate and Construction Services Built Around Your Projects Real estate and construction companies operate across complex project lifecycles, ownership structures, and regulatory environments. LBMC brings together accounting, advisory, tax, cybersecurity, and technology services to help you manage risk, improve project visibility, and support profitable growth—from development through completion and beyond. ![Master Project Management for a Construction Company](https://www.lbmc.com/wp-content/uploads/2024/11/Construction-Project-Management-Blog.jpg) ### Real Estate & Construction Advisory and Business Consulting Developers, contractors, and investors need clear insight into project performance, costs, and financial outcomes. LBMC’s advisory and business consulting services help organizations improve financial visibility, manage project risk, and make informed decisions throughout the lifecycle. We work alongside leadership teams to evaluate opportunities, address operational challenges, and align financial strategy with project goals—bringing together accounting, transaction, and valuation insight to support both active projects and long-term growth. **Related services:** - [Advisory & Business Consulting](https://www.lbmc.com/services/advisory/) - [Business Valuation Services](https://www.lbmc.com/services/advisory/business-valuation/) - [Client Advisory & Accounting Services (CAAS)](https://www.lbmc.com/services/advisory/client-advisory-accounting-services/) - [Human Resources](https://www.lbmcep.com/) - [Procurement](https://www.lbmc.com/services/procurement-services/) - [Recruiting & Staffing Solutions](https://www.lbmc.com/staffing-solutions/) - [Transaction Advisory Services](https://www.lbmc.com/services/advisory/transaction-advisory/) - [W Squared](https://lbmcwsquared.com/) ### Real Estate & Construction Audit & Assurance Services Accurate financial reporting and strong internal controls are critical for managing projects, securing financing, and meeting stakeholder expectations. LBMC provides audit and assurance services that support compliance, improve transparency, and help real estate and construction companies maintain credibility with lenders, investors, and surety providers. **Related services:** - [Financial Statement Audits](https://www.lbmc.com/services/audit-assurance/) - [Employee Benefit Plan Audits](https://www.lbmc.com/services/audit-assurance/employee-benefit-plan-audit/) - [Internal Audit](https://www.lbmc.com/services/audit-assurance/internal-audit/) - [SOC Reporting](https://www.lbmc.com/services/audit-assurance/soc-audit/) ### Real Estate & Construction Tax Services Real estate and construction companies face evolving tax regulations, multi-entity structures, and opportunities tied to project investment. LBMC’s tax professionals help manage compliance, identify tax-saving opportunities, and support strategic planning across the full lifecycle of your projects. **Related services:** - [Tax Planning & Compliance](https://www.lbmc.com/services/tax/) - [Federal Business Tax](https://www.lbmc.com/services/tax/federal-business-tax/) - [State & Local Tax (SALT)](https://www.lbmc.com/services/tax/state-local-tax/) - [Specialty Tax Services](https://www.lbmc.com/services/tax/credits-incentives/) - [Private Client Tax & Wealth Planning](https://www.lbmc.com/services/wealth-management/) ### Real Estate & Construction Cybersecurity & Technology Solutions As construction and real estate operations become more connected, protecting systems and using data effectively is critical. LBMC helps organizations strengthen cybersecurity, modernize technology platforms, and improve visibility into financial and operational performance—supporting better decision-making across projects and portfolios. **Related services:** - [Cybersecurity Advisory](https://www.lbmc.com/services/cybersecurity/) - [Risk Assessments](https://www.lbmc.com/services/cybersecurity/security-risk-assessments/) - [Penetration Testing Services](https://www.lbmc.com/services/cybersecurity/penetration-testing/) - [Incident Response & Digital Forensics](https://www.lbmc.com/services/cybersecurity/incident-response/) - [IT Security Compliance & Assurance (SOC, ISO, NIST, PCI)](https://www.lbmc.com/services/cybersecurity/it-security-compliance-assurance/) - [Business Intelligence & Data Analytics](https://www.lbmc.com/services/advisory/ai-business-intelligence/) - [AI & Automation Solutions (AIFlow)](https://www.lbmc.com/services/advisory/ai-business-intelligence/aiflow/) - [Managed IT & Technology Services](https://www.lbmctech.com/managed-it-services/) - [ProForm AIA Billing Solution](https://www.lbmctech.com/proform/) ### Solutions Built Around Your Goals Whether you’re managing complexity, preparing for growth, or exploring new opportunities, LBMC delivers practical guidance and strategic support to help you move forward with confidence. Start a Conversation ## R&D Tax Credit Case Study for Construction & Real Estate An architecture and engineering firm engaged LBMC to evaluate eligibility for R&D tax credits across its projects and operations. By working closely with leadership and analyzing project data and time-tracking processes, our team identified qualifying activities and calculated eligible expenses. **Results included:** - $13M in qualified research expenses (QREs) - $1.1M in federal tax credits - Additional state-level credits across multiple jurisdictions [View the full case study.](https://www.lbmc.com/wp-content/uploads/2022/06/MCSP_LBMC_RDCaseStudy.pdf) ### Do You Qualify for R&D Tax Credits? Many construction and real estate companies qualify without realizing it. You may be eligible if you: - Employ engineers, project managers, or technical staff - Develop or improve processes, designs, or systems - Incur material costs during development or testing - Build prototypes, models, or custom solutions ## Why Leading Real Estate and Construction Firms Choose LBMC Real estate and construction companies choose LBMC for practical guidance, industry-specific experience, and a coordinated approach that brings multiple disciplines together. Our team understands how projects, entities, and financial strategies connect—and delivers support that aligns with how your business operates. - **Integrated Family of Companies:** Accounting, tax, audit, technology, cybersecurity, HR, and wealth advisory delivered through one coordinated team - **30+ years of industry experience:** Serving developers, general contractors, and property managers across the region - **Construction-focused technology expertise:** Including ProForm AIA billing and Sage Intacct Construction implementation - **Tax credit and incentive experience:** Cost segregation, R&D credits, 1031 exchanges, Opportunity Zones, and energy efficiency deductions - **Transaction advisory support:** Due diligence and guidance for acquisitions, dispositions, and capital raises - **Regional presence, national expertise:** Offices in Nashville, Knoxville, Chattanooga, Memphis, Louisville, Charlotte, and Philadelphia. ### Talk to a Real Estate and Construction Advisor Whether you need help with cost segregation, construction audit requirements, tax planning for a development project, or technology to streamline your back office, LBMC’s team is ready to help. Request a Consultation ## Real Estate and Construction Organizations We Support Real estate and construction organizations operate across a wide range of business models, project types, and ownership structures—each with its own financial, regulatory, and operational considerations. LBMC works with companies across the full spectrum of the industry, bringing experience that supports both day-to-day operations and long-term growth strategies. - General contractors and specialty subcontractors - Commercial and residential real estate developers - Property management companies - Real estate investment and asset management firms - Architecture, engineering, and design firms - Family-owned real estate entities and partnerships - REITs and real estate fund managers - Mixed-use and multifamily developers - Infrastructure and civil construction firms ## ProForm: Simplifying AIA Billing In the dynamic world of construction, where every project involves intricate financial transactions, managing billing processes efficiently is crucial. Enter [ProForm](https://www.lbmctech.com/proform/), a powerful solution developed by LBMC Technology Solutions, designed to revolutionize AIA (American Institute of Architects) billing within the Construction industry. Seamlessly integrated with [Sage Intacct’s ERP accounting platform](https://www.lbmctech.com/sage-intacct/), ProForm simplifies complex billing procedures, enhances accuracy, and optimizes cash flow. [Learn more](https://www.lbmc.com/blog/introducing-proform-simplifying-aia-billing-for-construction-professionals/) ### Find the Right Solutions for Your Business Whether you’re managing cost pressures, improving operational performance, or planning for growth, LBMC can help you move forward with clarity. Talk to an Advisor ## Resources and Insights Explore practical guidance from LBMC’s real estate and construction professionals covering HUD compliance, fraud prevention, project management, construction technology, AIA billing, business valuation, outsourced accounting, cost segregation, and real estate tax planning. - [**Stay Ahead of HUD Compliance Requirements**](https://www.lbmc.com/blog/stay-ahead-of-hud-compliance-requirements/) Stay ahead of HUD compliance requirements. Learn reporting rules and key reminders to keep multifamily housing projects compliant and audit ready in 2026! - [**5 Internal Controls that Prevent Fraud in Construction Companies**](https://www.lbmc.com/blog/internal-controls-fraud-construction/) The Construction industry is known for having a history of fraud perpetration. Contractors can implement internal controls to mitigate. - [**Master Project Management for a Construction Company**](https://www.lbmc.com/blog/master-project-management-construction-company/) Streamline construction project management with modern tools like Sage Construction Management and Procore. Boost efficiency, reduce errors, and preserve profits. - [**Introducing ProForm: Simplifying AIA Billing for Construction Professionals**](https://www.lbmc.com/blog/introducing-proform-simplifying-aia-billing-for-construction-professionals/) Integrates with Sage Intacct’s ERP accounting platform, ProForm simplifies complex billing procedures, enhances accuracy, and optimizes cash flow. - [**Integration & Custom Software Development for Digital Growth**](https://www.lbmc.com/blog/integration-custom-software-development/) Partner with LBMC Technology Solutions to navigate digital complexity. From integrations to custom software, we empower your digital transformation journey. - [**Microsoft Dynamics SL**](https://www.lbmc.com/blog/microsoft-dynamics-sl/) This video highlights how Microsoft Dynamics SL helps meet companies’ specific needs of Project, Service and distribution functions. - [**Four Benefits of Data-Driven Decision Making**](https://www.lbmc.com/blog/benefits-of-data-driven-decision-making/) Data-driven decision making delivers a wide variety of benefits for businesses. Let’s explore them in more detail. - [**What’s Your Business Worth? The Art and Science of Business Valuation**](https://www.lbmc.com/blog/business-valuation-whats-your-business-worth/) LBMC outlines the different business valuation services that can be offered when valuing business worth and the pros and cons of each. - [**Is Outsourced Accounting Right for Your Growing Business?**](https://www.lbmc.com/blog/outsourced-accounting-function/) Discover whether outsourced accounting is right for your growing business. Learn how LBMC’s CAAS team delivers scalable, strategic financial support tailored to your needs. - [**Accelerated Depreciation and Cost Segregation Studies**](https://www.lbmc.com/blog/accelerated-depreciation-and-cost-segregation/) Cost segregation studies, bonus depreciation, and Section 179 expensing are all ways that your business can benefit. Read how here. - [**Qualified Opportunity Zones Tax Benefits for Real Estate**](https://www.lbmc.com/blog/qualified-opportunity-zones-tax-real-estate/) Real Estate Investors have an opportunity for temporary and permanent tax deferral with Qualified Opportunity Zones. Learn more about the tax benefits. - [**Section 199A Rental Real Estate Activity Safe Harbor**](https://www.lbmc.com/blog/section199a-rental-real-estate-safe-harbor/) Learn how rental real estate can qualify for the Section 199A deduction under IRS safe harbor rules, including the 250-hour requirement and key exclusions. - [**Section 1031 Like-Kind Exchanges under the TCJA**](https://www.lbmc.com/blog/section-1031-like-kind-exchanges/) The Tax Cuts and Jobs Act of 2017 (TJCA) changed the tax landscape as we know it, and section 1031 like-kind exchanges were no exception. - [**Tax Implications of Converting a Personal Residence to Rental Property**](https://www.lbmc.com/blog/personal-residence-to-rental-property/) Converting a home to rental property? Understand depreciation, basis rules, and tax consequences before you make the switch. ## FAQs about Real Estate & Construction Accounting and Business Consulting Services **What does a real estate CPA help with that a general CPA cannot?** A real estate CPA provides specialized guidance on entity structuring, partnership allocations, and tax strategies unique to real estate investments. This includes navigating 1031 exchanges, cost segregation studies, and Opportunity Zone investments to help maximize tax efficiency and long-term returns. [Learn more about tax strategies for real estate investments.](https://www.lbmc.com/blog/qualified-opportunity-zones-tax-real-estate/) **How does a construction CPA firm support contractors with financial reporting?** A construction CPA helps contractors manage complex financial reporting requirements, including ASC 606 revenue recognition, percentage-of-completion accounting, and work-in-progress (WIP) reporting. These insights are critical for maintaining accurate financials, meeting lender and surety bonding requirements, and supporting project profitability. [Read more about construction revenue recognition](https://www.lbmc.com/blog/revenue-recognition-private-company/). **What is a cost segregation study, and how does it benefit real estate investors?** A cost segregation study identifies components of a property that can be depreciated more quickly, accelerating tax deductions and improving cash flow. By reclassifying assets into shorter depreciation categories, real estate investors can reduce taxable income and reinvest savings into new projects. [Learn more about accelerated depreciation and cost segregation](https://www.lbmc.com/blog/accelerated-depreciation-and-cost-segregation/). **What R&D tax credits are available for construction and engineering companies?** Construction and engineering companies may qualify for R&D tax credits when they design, develop, or improve processes, materials, or systems. Activities such as prototyping, engineering design, and process improvements often meet eligibility requirements. [Explore how R&D tax credits can benefit your business](https://www.lbmc.com/services/tax/research-development/). **How does ASC 842 affect real estate companies with large lease portfolios?** ASC 842 requires companies to recognize most leases on the balance sheet, increasing visibility into lease obligations and impacting financial metrics. For real estate organizations with large lease portfolios, this can affect reporting, compliance, and lender relationships. Advisory support and lease accounting tools can help manage these requirements effectively. [Learn more about lease accounting services](https://www.lbmc.com/services/audit-assurance/lease-accounting-services/). ### Local Expertise, Wherever You Are With offices in [Chattanooga](https://www.lbmc.com/locations/chattanooga/), [Memphis](https://www.lbmc.com/locations/memphis/), [Louisville](https://www.lbmc.com/locations/louisville/), [Nashville](https://www.lbmc.com/locations/nashville/), [Knoxville](https://www.lbmc.com/locations/knoxville/), [Charlotte](https://www.lbmc.com/locations/charlotte/), and [Philadelphia](https://www.lbmc.com/locations/philadelphia/) plus remote offices, LBMC partners with businesses across the region and beyond. [Find an office near you.](https://www.lbmc.com/locations/) [![Jeff Talley, CPA, is a Tax Shareholder at LBMC in Nashville, serving clients in manufacturing, real estate, nonprofits, and professional services.](https://www.lbmc.com/wp-content/uploads/2025/07/Jeff_talley-150x150.jpg)](https://www.lbmc.com/team/jeff-talley/) ## [Jeff Talley](https://www.lbmc.com/team/jeff-talley/) #### Shareholder, Tax [jeffrey.talley@lbmc.com](mailto:jeffrey.talley@lbmc.com) [![Marc Tolleson, CPA, is an Audit Shareholder at LBMC in Knoxville with deep M&A and accounting expertise for PE-backed, startup, and global clients.](https://www.lbmc.com/wp-content/uploads/2025/07/Marc-Tolleson-web-150x150.jpg)](https://www.lbmc.com/team/marc-tolleson/) ## [Marc Tolleson](https://www.lbmc.com/team/marc-tolleson/) #### Shareholder, Audit and Advisory [marc.tolleson@lbmc.com](mailto:marc.tolleson@lbmc.com) [![Mark Blackburn, CPA, is a Nashville Audit Shareholder at LBMC, leading one of the nation's top employee benefit plan audit practices.](https://www.lbmc.com/wp-content/uploads/2025/07/Mark_Blackburn-150x150.jpg)](https://www.lbmc.com/team/mark-blackburn/) ## [Mark Blackburn](https://www.lbmc.com/team/mark-blackburn/) #### Shareholder, Audit and Advisory [mark.blackburn@lbmc.com](mailto:mark.blackburn@lbmc.com) [![Chuck Tomlin, CPA, is a Tax Shareholder at LBMC’s Nashville office, serving real estate, manufacturing, healthcare, and international clients in Nashville and Chattanooga.](https://www.lbmc.com/wp-content/uploads/2025/07/tomlin-chuck-150x150.jpg)](https://www.lbmc.com/team/chuck-tomlin/) ## [Chuck Tomlin](https://www.lbmc.com/team/chuck-tomlin/) #### Partner, LBMC India Professional Services, LLP, Leader in Chennai, India office and Shareholder, Tax Services, LBMC PC [chuck.tomlin@lbmc.com](mailto:chuck.tomlin@lbmc.com) ## Let’s Talk About Your Real Estate and Construction Business Whether you’re managing cost pressures, improving operational performance, or planning for growth, LBMC’s team is ready to help. We’ll start with a conversation focused on your business goals, current challenges, and where you need support.