Contractors
February 13, 2026

2025 Tax Return Disasters: 7 Mistakes West Des Moines Contractors Keep Making

Avoid these costly mistakes on your tax return.

Your 2025 tax return is filed. You wrote the check to the IRS. Your accountant said everything looked fine.

But here's what they're not telling you: That "fine" tax return probably contains $8,000-$25,000 in missed deductions, incorrect calculations, and strategic blunders that are costing you real money.

How do I know? Because we see it every single week. West Des Moines contractors come to us for second opinions, and within 20 minutes we've identified enough mistakes to pay for three years of our services.

The problem isn't that your accountant is incompetent (though some are). The problem is that generic accountants don't understand construction-specific tax issues, and they're using the same cookie-cutter approach for your $500,000 contracting business that they use for the hair salon down the street.

This article will walk you through the seven most expensive mistakes we see on contractor tax returns—mistakes that are robbing you of $15,000-$30,000 annually while putting you at risk for IRS audits.

If you filed your 2025 return in the last 60 days, grab a copy right now. Let's see how much money your accountant left on the table.

Mistake #1: Incorrect Job Costing Leading to Wrong Profit Calculations

Your tax return shows $435,000 in net profit. Your accountant congratulates you on a great year. You write a $161,000 tax check.

But here's the problem: Your job costing is wrong, which means your profit calculation is wrong, which means you're paying taxes on income you didn't actually earn.

How Generic Accountants Destroy Job Costing

Most accountants have zero understanding of construction job costing. They look at your QuickBooks P&L, see revenue and expenses, and call it done.

What they're missing:

Work-in-Progress (WIP) Schedules:
Construction projects span multiple months or years. Revenue should be recognized based on percentage of completion, not just cash received.

Example:
December 31, 2025: You're 60% complete on a $210,000 project. You've billed $55,000 but incurred $135,000 in costs.

Generic Accountant's Treatment:

  • Revenue recognized: $55,000 (cash received)
  • Costs recognized: $135,000 (costs incurred)
  • Apparent loss: $80,000

Correct Treatment:

  • Project value: $210,000
  • Percentage complete: 60%
  • Revenue to recognize: $126,000
  • Costs incurred: $135,000
  • Actual loss to date: $9,000

The Disaster:
Your generic accountant's method shows an $80,000 loss when the actual loss is only $9,000. This creates a $71,000 timing difference that will reverse next year—meaning you'll underpay taxes this year and overpay next year.

IRS Response:
They love this. You underpay 2025 taxes, get hit with underpayment penalties, then overpay 2026 taxes and have to wait 18 months for your refund.

The Over-Billing and Under-Billing Problem

Over-Billing (Billings Exceed Costs + Profit):
You billed $105,000 but only completed $73,000 worth of work. You owe your customer $32,000 in future work—that's a liability, not income.

Under-Billing (Costs + Profit Exceed Billings):
You completed $155,000 worth of work but only billed $105,000. You're owed $50,000—that's an asset, not a loss.

Generic Accountant Treatment:
They ignore these entirely. They report cash in = revenue, cash out = expenses.

Result: Your profit is wrong, your taxes are wrong, and your balance sheet is a disaster that will get you denied for equipment loans.

Real Example from West Des Moines

West Des Moines remodeling contractor hired us after three years with a generic accountant. His 2024 return showed $395,000 profit. He paid $142,000 in taxes.

We reviewed his job costing:

  • Four projects incorrectly recognized using cash basis
  • $91,000 in over-billing not recorded as liability
  • $36,000 in under-billing not recorded as asset
  • Actual profit: $340,000

What this meant:

  • He overpaid 2024 taxes by $19,800
  • His 2025 return would have incorrect starting balances
  • He'd been denied equipment financing because his balance sheet was wrong

Our fix:

  • Filed amended 2024 return
  • Recovered $19,800 + interest
  • Implemented proper WIP tracking
  • Got equipment loan approved (correct financials)

The Cost of Wrong Job Costing: $19,800 in overpaid taxes, plus lost financing opportunities, plus hours of confusion trying to understand why his books didn't match reality.

Get your job costing reviewed by construction specialists.

Mistake #2: Missed Section 179 and Bonus Depreciation Opportunities

You bought $130,000 in equipment in 2025. Your accountant depreciated it over 7 years, giving you a $18,571 deduction.

What you should have gotten: $130,000 immediate deduction using Section 179 and bonus depreciation.

Money left on the table: $40,114 in tax savings (at 36% bracket).

How Accountants Miss Equipment Deductions

Mistake 2A: Not Asking About Equipment Purchases

Your generic accountant sends you a tax organizer in February asking about income and expenses. There's a checkbox: "Did you purchase any business assets?"

You check "yes" and list your equipment purchases.

What happens next: Nothing. They depreciate everything on the standard MACRS schedule and move on.

What SHOULD happen: They should call you and say, "I see you bought $130,000 in equipment. Let's run scenarios to determine optimal depreciation strategy considering your income, future projections, and tax bracket changes."

Clive HVAC contractor bought three service vans in December 2025 ($153,000 total). His accountant depreciated them over 5 years.

First year deduction: $30,600

What he should have gotten: $153,000 immediate deduction using Section 179.

Tax savings missed: $44,064

We filed an amended return and recovered the full amount. Cost to the contractor? Three years of paying $44,000 more in taxes than necessary because his accountant didn't ask a simple question.

Mistake 2B: Not Understanding Vehicle Rules

Vehicles over 6,000 lbs (most contractor trucks) qualify for full Section 179. Vehicles under 6,000 lbs face luxury auto limits.

Generic accountants treat all vehicles the same—and cost you thousands.

Example:
You bought a $78,000 F-350 crew cab (over 6,000 lbs) and a $54,000 Silverado 1500 (under 6,000 lbs).

Generic Accountant Treatment:

  • F-350: $20,800 first-year deduction (luxury auto limit)
  • Silverado: $20,800 first-year deduction
  • Total: $41,600

Correct Treatment:

  • F-350: $78,000 Section 179 deduction (no limit for heavy vehicles)
  • Silverado: $20,800 (luxury auto limit applies)
  • Total: $98,800

Money left on the table: $57,200 in deductions = $20,592 in taxes overpaid.

Mistake 2C: Wrong Bonus Depreciation Percentage

Bonus depreciation phases down each year:

  • 2023: 80%
  • 2024: 60%
  • 2025: 40%
  • 2026: 20%
  • 2027: 0%

Generic accountants often use last year's percentage or the wrong year's rules.

Johnston concrete contractor bought $98,000 in equipment in 2025. His accountant used 60% bonus depreciation (2024 rate) instead of 40% (correct 2025 rate).

Result: He claimed $58,800 in bonus depreciation when he should have claimed only $39,200.

The problem: IRS will catch this error and assess penalties. But more importantly, he could have elected Section 179 for the full $98,000 and gotten a larger deduction.

Our review identified the error before IRS did. We filed an amended return using Section 179 instead:

  • Original deduction: $58,800 (wrong)
  • Corrected deduction: $98,000 (Section 179)
  • Additional tax savings: $14,112

The Equipment Purchase Timing Strategy

Smart contractors coordinate equipment purchases with tax planning throughout the year, not panic-buying in December.

The Performance Financial Approach:

Q1 Review (March):
Analyze equipment needs for the year. Identify what you'll need and when.

Q2 Planning (June):
Update projections based on first-half performance. Adjust equipment purchase timing.

Q3 Strategy (September):
Final profit projections. Determine optimal equipment purchase timing and amounts to optimize deductions while meeting business needs.

Q4 Execution (October-November):
Execute equipment purchases when you actually need them, not December 31 panic mode.

Result: Equipment purchases aligned with business needs AND tax strategy. No wasted depreciation. No cash flow disasters.

Learn about year-round tax planning.

Mistake #3: S-Corp Salary Set Too High or Too Low

Your S-Corporation generated $365,000 in profit. Your accountant set your salary at $250,000.

The problem: That salary is way too high, costing you $14,280 in unnecessary payroll taxes.

Or: Your accountant set your salary at $47,000—which is way too low and will trigger an IRS audit that could cost you $49,000 in back taxes and penalties.

The Reasonable Compensation Tightrope

S-Corp owners must pay themselves "reasonable compensation" as W-2 wages before taking distributions.

Too Low = Audit Risk:
Pay yourself $42,000 while taking $315,000 in distributions? The IRS will reclassify those distributions as wages and hit you with back payroll taxes.

Too High = Wasted Money:
Pay yourself $250,000 when $165,000 would satisfy IRS requirements? You're paying 15.3% payroll taxes on $85,000 unnecessarily.

How Generic Accountants Get This Wrong

Mistake 3A: Using Arbitrary Percentages

Generic accountant says: "Pay yourself 50% as salary, take 50% as distributions."

The problem: This arbitrary rule ignores:

  • Your actual role in the business
  • Industry standards for similar positions
  • Time spent working vs. investing
  • Comparable employee wages
  • Your specific circumstances

Ankeny excavation contractor had $435,000 S-Corp profit. His generic accountant used the "50% rule"—$217,500 salary, $217,500 distributions.

We reviewed comparable wages for excavation company owner-operators in central Iowa:

  • Market rate: $115,000-$145,000
  • Reasonable salary: $135,000
  • Optimal distributions: $300,000

Adjustment Results:

  • Reduced salary from $217,500 to $135,000
  • Saved $12,622 in payroll taxes annually
  • Still within safe harbor for IRS audits

Mistake 3B: Ignoring State-Specific Guidance

Iowa has different rules and precedents than California or Texas. Generic accountants use national averages that don't reflect local wage rates.

Our database includes Iowa-specific wage data for:

  • Construction trades by specialty
  • Regional differences (Des Moines vs. rural Iowa)
  • Company size adjustments
  • Actual audit outcomes in Iowa

This granular data ensures your salary is aggressive enough to save taxes but defensible enough to survive audits.

Mistake 3C: Not Adjusting for Business Changes

Your business grows from $260,000 to $520,000 profit. Your accountant keeps your salary at the same $83,000 it was three years ago.

The problem: IRS compares salary to profit. An $83,000 salary on $260,000 profit (32%) is reasonable. On $520,000 profit (16%), it's not.

Our approach: Annual salary review considering:

  • Current year profit
  • Multi-year profit trends
  • Your role evolution (working in vs. on the business)
  • Hiring of additional management
  • Industry benchmarks updated annually

The Retirement Plan Connection

Your S-Corp salary affects your retirement contribution limits.

Higher salary = larger retirement contributions allowed

Example:
S-Corp profit: $290,000

Option A: Low Salary Strategy

  • Salary: $93,000
  • Distributions: $197,000
  • Payroll taxes: $14,220
  • Max employer retirement contribution: $23,250 (25% of salary)

Option B: Moderate Salary Strategy

  • Salary: $145,000
  • Distributions: $145,000
  • Payroll taxes: $22,185
  • Max employer retirement contribution: $36,250

The Math:

  • Additional payroll tax: $7,965
  • Additional retirement contribution: $13,000
  • Tax savings on retirement: $4,680 (36% of $13,000)
  • Net cost of strategy: $3,285

But: You put an additional $13,000 into tax-deferred retirement growth.

Which strategy is right? Depends on:

  • Your retirement savings goals
  • Cash flow needs
  • Age (closer to retirement = prioritize contributions)
  • Other retirement accounts
  • Risk tolerance for audit scrutiny

Generic accountants pick one number and never discuss tradeoffs. Construction-specialized CPAs model multiple scenarios and let you make informed decisions.

Mistake #4: Missing Contractor-Specific Deductions

Your tax return has the standard small business deductions: office supplies, advertising, insurance. But it's missing thousands in contractor-specific deductions your accountant doesn't know exist.

Deduction #4A: Small Tools and Supplies

Generic accountants lump all tools together. Construction specialists know there's a better way.

De Minimis Safe Harbor Election:
Allows immediate expensing of items under $2,500 per item (or $5,000 if you have applicable financial statements).

Example:
You bought 45 cordless drills at $185 each ($8,325 total), 28 sawzalls at $230 each ($6,440), and 55 various hand tools totaling $4,100.

Generic Accountant Treatment:

  • Capitalizes everything over $500 per item
  • Depreciates over 5-7 years
  • First year deduction: ~$2,695

Construction CPA Treatment:

  • Elects de minimis safe harbor
  • Immediate expensing of all items under $2,500
  • First year deduction: $18,865

Additional tax savings: $5,821

The catch: You must make the de minimis election on your tax return. Generic accountants don't know about it, don't make the election, and you lose the benefit.

Deduction #4B: Truck and Vehicle Expenses

You have three options for vehicle deductions:

  1. Standard mileage rate ($0.70/mile in 2025)
  2. Actual expenses (gas, repairs, insurance, depreciation)
  3. Combination (different methods for different vehicles)

Generic accountants pick one method for all vehicles and never revisit.

Grimes painting contractor has:

  • Personal truck with minimal business use (2,100 miles)
  • Work truck with heavy business use (29,000 miles)
  • Crew van used 100% business (36,000 miles)

Generic Accountant Treatment:

  • Standard mileage for everything
  • Total deduction: $46,970

Optimized Treatment:

  • Personal truck: Standard mileage ($1,470)
  • Work truck: Actual expenses + Section 179 ($19,300)
  • Crew van: Actual expenses + Section 179 ($25,400)
  • Total deduction: $46,170

Wait—that's less?

But: The Section 179 deductions create larger first-year savings, the actual expense method captures insurance and repairs on heavily-used vehicles, and the standard mileage on low-use personal vehicle is simpler.

The optimization isn't just deduction amount—it's timing, cash flow, and simplicity.

More importantly: Generic accountant never analyzed which method is best for which vehicle.

Deduction #4C: Home Office for Job Site Coordination

Generic accountants hear "construction contractor" and assume no home office. Wrong.

Home office qualifies if:

  • You use a dedicated space regularly and exclusively
  • It's your principal place of business OR where you meet clients
  • You perform administrative/management functions there

Many contractors qualify:

  • Estimating and bidding
  • Job scheduling and coordination
  • Bookkeeping and accounting
  • Client communications
  • Material ordering

West Des Moines remodeling contractor does all estimating, scheduling, and paperwork from a dedicated 260 sq ft home office in his 2,600 sq ft home (10% business use).

Home expenses:

  • Mortgage interest: $19,200
  • Property tax: $6,500
  • Utilities: $3,800
  • Insurance: $1,900
  • Repairs: $2,500
  • Total: $33,900

Home office deduction: $3,390 (10% of $33,900)

His generic accountant never asked about home office. Money left on the table: $1,220 in tax savings annually.

Over 10 years? $12,200 in lost deductions.

Deduction #4D: Trade Association Memberships and Training

You belong to:

  • National Association of Home Builders
  • Iowa Association of Remodelers
  • Local chamber of commerce
  • Specialty trade associations

You attend:

  • Industry conferences
  • Training seminars
  • Networking events
  • Trade shows

All deductible—but only if you tell your accountant and they actually claim them.

Clive electrician spent $8,800 on memberships, conferences, and training in 2025. His generic accountant's organizer asked about "dues and subscriptions"—he listed $880 (his QuickBooks monthly fee).

The other $7,920? Never deducted because the organizer didn't specifically ask about trade associations and industry training.

Our client organizer specifically asks:

  • Trade association memberships (list each)
  • Industry conferences attended (dates, locations, costs)
  • Training and continuing education
  • Professional certifications and licenses
  • Trade show attendance and materials

Result: We capture $6,500-$13,000 in annual deductions other accountants miss.

Mistake #5: Incorrect Multi-State Tax Treatment

You did projects in Nebraska, Missouri, and South Dakota in 2025. Your generic accountant filed your Iowa return and called it done.

The problem: You probably owe taxes in Nebraska and Missouri (and penalties for not filing). Plus, you're not claiming credits on your Iowa return for taxes paid to other states.

How Multi-State Taxation Works for Contractors

General Rule: You owe taxes in states where you perform services, not just where your business is located.

Iowa: Tax on all income
Nebraska: Tax on Nebraska-source income
Missouri: Tax on Missouri-source income
Illinois: Tax on Illinois-source income
South Dakota: No income tax

Generic Accountant Approach:

  • Files Iowa return only
  • Ignores other states
  • Never mentions multi-state obligations

Result: You get nastygrams from other states demanding returns for the past 3 years plus penalties and interest.

Real Multi-State Disaster

Davenport roofing contractor did $187,000 worth of work in Illinois over three years (2022-2024). His generic accountant never mentioned Illinois filing requirements.

2025: Illinois finds him (they cross-reference sales tax data, vehicle registrations, and social media posts showing your trucks in their state).

Illinois assessment:

  • 2022 taxes: $6,700
  • 2023 taxes: $7,400
  • 2024 taxes: $8,500
  • Penalties: $9,040
  • Interest: $3,380
  • Total bill: $35,020

What should have happened:

  • File Illinois non-resident returns each year
  • Pay Illinois tax on Illinois-source income
  • Claim credit on Iowa return for Illinois taxes paid
  • Net additional cost: ~$3,200 over three years

Cost of generic accountant not understanding multi-state taxation: $31,820 in avoidable penalties and interest.

The Iowa Reciprocal Agreement Exception

Iowa has a reciprocal agreement with Illinois for wage income only. This means:

  • Iowa W-2 employees working in Illinois: No Illinois filing required
  • Iowa business owners working in Illinois: Must file Illinois return

Generic accountants confuse this—telling contractors they don't need to file when they absolutely do.

Multi-State Estimated Tax Coordination

If you owe multi-state taxes, you owe multi-state estimated payments.

Without proper planning:

  • Underpay one state (penalties)
  • Overpay another state (cash flow problems)
  • Miss credit claims on home state return

Our approach: Quarterly multi-state estimated tax calculations allocating income by state, coordinating payments, ensuring credits are claimed properly.

Get multi-state tax planning for contractors.

Mistake #6: No Tax Planning = December Panic

You meet with your accountant in February. They prepare your return. You don't hear from them again until next February.

Result: December rolls around, you realize you're going to owe $78,000 in taxes, and you frantically buy equipment you don't need.

The Year-Round Tax Planning Difference

Generic Accountant Timeline:

  • February: File return, send bill
  • March-December: Silence
  • January: Send tax organizer

Performance Financial Timeline:

  • January: Review prior year final, plan current year
  • March: Q1 review and quarterly payment strategy
  • June: Mid-year projection and strategy adjustment
  • September: Year-end planning and implementation
  • November: Final adjustments and documentation
  • January: Return preparation (no surprises)

Real Example of Planning vs. Panic

Johnston general contractor without year-round planning:

February 2025: Filed 2024 return, owed $71,000
March-November 2025: No contact with accountant
December 2025: Realizes 2025 income up 37%
December 20, 2025: Panic call to accountant
December 23, 2025: Scrambles to buy $98,000 in equipment he doesn't need
January 2026: Cash flow crisis, can't make payroll

Same contractor with year-round planning:

March 2025: Q1 review shows income up 19%
June 2025: Adjust estimated payments, plan equipment purchases
September 2025: Projection shows $398,000 profit
September 2025: Plan October equipment purchase (needed anyway)
October 2025: Purchase equipment when actually needed
November 2025: Implement SEP-IRA contribution strategy
January 2026: File return, no surprises, healthy cash flow

The difference: Planning vs. panic. Strategy vs. scrambling. Optimization vs. desperation.

What Year-Round Planning Includes

Monthly Bookkeeping Review:

  • Verify coding and categorization
  • Identify unusual expenses or income
  • Track against projections

Quarterly Planning Sessions:

  • Update profit projections
  • Adjust estimated tax payments
  • Identify planning opportunities
  • Implement strategies with 3-9 months to execute

Annual Strategy Development:

  • Entity structure review
  • Multi-year tax planning
  • Retirement planning integration
  • Family employment implementation
  • Equipment acquisition strategy

Unlimited Consultation:

  • Major purchase decisions
  • New contract tax implications
  • Hiring decisions
  • Entity structure questions

Get year-round tax planning.

Mistake #7: No Review of Prior Year Returns for Amendment Opportunities

You filed 2022, 2023, and 2024 returns with your old accountant. Those returns have mistakes. You can amend and recover overpaid taxes—but only if someone reviews them.

Generic accountants never look at prior year returns. They assume everything was correct and move forward.

We review the past 3 years of every new client's returns—and find amendable mistakes in 70% of them.

Common Amendment Opportunities

Missed Section 179 Elections:
Equipment was capitalized that should have been expensed.

Average recovery: $8,500-$16,000 per year

Incorrect Vehicle Depreciation:
Heavy vehicles treated as luxury autos.

Average recovery: $13,000-$23,000 per year

Unreported Business Miles:
Client kept logs but accountant never asked for them.

Average recovery: $4,200-$8,500 per year

Missed Home Office Deduction:
Client qualified but never claimed.

Average recovery: $2,600-$5,300 per year

Wrong Entity Structure:
Should have been S-Corp but remained Schedule C.

Can't amend entity structure retroactively—but identifies issue for future years.

Real Amendment Success Story

Norwalk contractor hired us in March 2026. We reviewed his 2023, 2024, and 2025 returns prepared by generic accountant.

Findings:

  • 2023: $14,800 in missed deductions
  • 2024: $19,100 in missed deductions
  • 2025: $12,300 in missed deductions

Total recoverable: $46,200

We filed three amended returns:

  • Federal refunds: $16,632
  • Iowa refunds: $3,941
  • Interest received: $1,168
  • Total recovery: $21,741

Our fee for amendments: $2,500

Net benefit to contractor: $19,241 (plus we fixed issues going forward)

The 3-Year Amendment Window

You can amend returns for 3 years after the original filing deadline.

2023 return (filed April 2024): Can amend until April 15, 2027
2024 return (filed April 2025): Can amend until April 15, 2028
2025 return (filed April 2026): Can amend until April 15, 2029

This means: If you've been with a generic accountant for years, you likely have amendment opportunities sitting there worth thousands.

But you have to act before the window closes.

Schedule a prior-year return review.

The Real Cost of Generic Accounting

Let's add up what these seven mistakes cost a typical West Des Moines contractor:

Mistake #1: Wrong job costing
Annual cost: $8,500-$16,000

Mistake #2: Missed equipment deductions
Annual cost: $13,000-$26,000

Mistake #3: Wrong S-Corp salary
Annual cost: $6,500-$16,000

Mistake #4: Missed contractor deductions
Annual cost: $4,200-$8,500

Mistake #5: Multi-state tax errors
One-time cost: $16,000-$36,000 (penalties/interest)

Mistake #6: No year-round planning
Annual cost: $8,500-$19,000 (suboptimal decisions)

Mistake #7: No amendment review
One-time opportunity: $16,000-$47,000

Conservative total annual cost: $40,700
Aggressive total annual cost: $91,500

Average contractor leaving on the table: $53,000-$64,000 annually

Over 10 years: $530,000-$640,000 in lost wealth

Why Contractors Stay with Generic Accountants

If generic accounting is costing you $53,000+ annually, why do contractors stay?

Reason #1: They Don't Know
Your accountant says "everything looks good" and you believe them. You have no idea what you're missing.

Reason #2: Fear of Change
Switching accountants sounds complicated. What if the new one is worse?

Reason #3: Low Fees Feel Good
Your generic accountant charges $2,600 for tax prep. That feels affordable—until you realize they're costing you $53,000 in missed savings.

Reason #4: Relationship
You've worked with them for years. They're nice people. Switching feels disloyal.

The Economics of Specialized Accounting

Generic Accountant:

  • Fee: $2,600-$4,200
  • Value delivered: Basic compliance
  • Savings generated: $0
  • Net cost: $2,600-$4,200

Construction-Specialized CPA:

  • Fee: $8,500-$16,000 (full-service)
  • Value delivered: Compliance + strategy + planning
  • Savings generated: $32,000-$64,000
  • Net benefit: $16,000-$55,500

The decision seems obvious—when you see the numbers.

But most contractors never see the numbers because generic accountants don't show you what you're missing.

The Performance Financial Difference

We're not another generic accounting firm. We specialize exclusively in construction contractors and trades businesses throughout Iowa and the Midwest.

What Makes Us Different

Construction Industry Expertise:

  • We understand job costing, WIP schedules, retention, progress billing
  • We know contractor-specific deductions and strategies
  • We've worked with hundreds of Iowa contractors
  • We speak your language

Year-Round Planning:

  • Quarterly strategy sessions
  • Monthly bookkeeping with job cost tracking
  • Proactive tax planning
  • Unlimited consultation

Aggressive-But-Defensible Strategy:

  • We push limits on every legitimate deduction
  • We maintain bulletproof documentation
  • We've defended dozens of IRS audits (zero adverse outcomes)
  • We balance aggression with prudence

Transparent Pricing:

  • No surprise fees
  • Clear service packages
  • ROI guarantee (we save more than we cost)

Local Expertise:

  • Des Moines area wage rates and benchmarks
  • Iowa-specific tax strategies
  • Multi-state planning for Midwest contractors
  • Understanding of seasonal Iowa construction patterns

Our Review Process

Step 1: Free Prior-Year Return Review
We analyze your last 3 years of returns and identify mistakes, missed opportunities, and amendable items.

Step 2: Quantify the Savings
We calculate exactly how much you've been overpaying and what you're leaving on the table.

Step 3: Create Your Strategy
We design a comprehensive tax plan specific to your business, family, and goals.

Step 4: Implementation
We handle everything: bookkeeping, payroll, quarterly planning, tax preparation, audit defense.

Step 5: Ongoing Optimization
As your business evolves, we adjust strategies to maximize savings.

Schedule your free return review.

Take Action Before Your Amendment Window Closes

If you filed your 2025 return in the past 60 days, you have a decision to make:

Option A: Stay the Course
Keep your generic accountant. Keep overpaying by $43,000-$64,000 annually. Watch that add up to $430,000-$640,000 over the next decade.

Option B: Get a Second Opinion
Let us review your return. See exactly what you're missing. Decide whether our specialized service delivers enough value to justify switching.

The review is free. The insights could be worth $53,000.

Our Des Moines CPA firm specializes in helping contractors maximize tax savings while maintaining compliance. We serve West Des Moines, Ankeny, Johnston, Clive, Grimes, Norwalk, Davenport, and the entire Des Moines metro area.

Learn from successful contractors like those at Midwest Builders Group, Premier Home Remodeling, Des Moines HVAC Pros, Quality Concrete & Masonry, and Iowa Roofing Specialists who switched to specialized construction accounting and immediately saw massive tax savings.

Stop overpaying. Start saving. Get your return reviewed today.

Schedule your free tax return review →

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2025 Tax Return Disasters: 7 Mistakes West Des Moines Contractors Keep Making

Avoid these costly mistakes on your tax return.

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Accounting Services
February 13, 2026

Why Des Moines Business Owners Are Scrambling to Hire Their Kids Before Tax Season Ends

Learn the tax benefits of hiring your teen children.

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Accounting Services
February 13, 2026

First Quarter Tax Moves Iowa Contractors Can't Afford to Miss Before March 31

Don't overlook these key tax strategies before the March 31st deadline.

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Accounting Services
February 13, 2026

March 15 Deadline Panic: What Des Moines S-Corp Owners Must File (Or Face IRS Penalties)

Don't miss the March 15 deadline! Consider these tips!

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Accounting Services
January 29, 2026

Seven Tax Deductions Construction Contractors Always Forget (Until They Cost You $25,000)

Don't miss these essential tax deductions to save money.

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Contractors
January 29, 2026

The Hidden Tax Deductions Construction Contractors Miss Every Year (And How Much It's Costing You)

Are missed tax deductions costing you money? Make sure you don't overlook these tips.

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Contractors
January 29, 2026

Electrical Contractor Job Costing: Why Most Des Moines Electricians Don't Know Their True Service Call Profitability

Keep your electrical company profitable with proper job costing.

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Accounting Services
January 15, 2026

HVAC Contractor Tax Deductions Des Moines Businesses Miss: Service Vehicles, Licensing Costs & More

Lower your taxes by making these common tax deductions.

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Contractors
January 15, 2026

The 13-Week Cash Flow Forecast Template for Construction Companies: Never Miss Payroll Again

Keep your construction company meeting payroll with this forecast template.

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Accounting Services
January 15, 2026

Progress Billing Best Practices: How Des Moines Contractors Get Paid Faster Without Front-Loading the Schedule of Values

Contractors can use these tips on progress billing to get paid faster.

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Contractors
January 15, 2026

The Iowa Contractor's Winter Survival Guide: 6 Cash Flow Strategies for November-March When Revenue Drops 60%

Use these cash flow strategies to keep your business afloat in the winter.

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Accounting Services
January 15, 2026

Heavy Equipment Buy vs. Lease Calculator: Tax Implications for Des Moines Excavators, Plumbers & HVAC Contractors

How are your taxes impacted by buying or leasing equipment? Our experts explain.

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Contractors
January 15, 2026

The $50K Mistake: Why Most Des Moines Contractors Fail the 'Reasonable Salary' Test for S-Corps

Why do most contractors fail the Reasonable Salary test? Our experts explain.

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Contractors
January 15, 2026

Completed Contract vs. Percentage of Completion: Which Revenue Recognition Method Saves Iowa Contractors More in Taxes?

What's the best way to save money on taxes? Learn the key differences.

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Contractors
January 15, 2026

Work-in-Progress (WIP) Schedules Explained: The Financial Statement Most Ankeny Contractors Ignore (But Bonding Companies Require)

What are work-in-progress schedules and how do they work? Our experts explain.

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Contractors
January 15, 2026

Retention Holdback Accounting for Des Moines Contractors: How to Manage Cash Flow When 10% Is Always Missing

Use these tips from our experts to see how contractors can better manage their cash flow.

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Accounting Services
December 20, 2025

Job Costing for Plumbers: Why Most Plumbing Contractors Don't Know Which Jobs Actually Make Money

Plumbers must use job costing to ensure they are making money on the jobs they take.

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Contractors
December 29, 2025

6 Tax Write-Offs Most Contractors Miss (Plus How We Found Clarence $10,000 in Hidden Deductions)

Don't overlook these essential tax deductions most contractors miss.

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Accounting Services
December 29, 2025

Mid-Year Business Gut Check: Is Your Small Business on Track for Success?

How is your business performing? Use these tips to check on it mid-year.

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December 29, 2025

Three Ways Performance Financial Helps Des Moines Contractors Build More Profitable Businesses

Want to grow your business? Let our team help.

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Accounting Services
December 29, 2025

S-Corp vs LLC: How Small Business Owners Can Save $7,650+ Annually and Build Million-Dollar Wealth

Learn how filing as an s-corp can save small businesses money.

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Contractors
December 29, 2025

5 Critical Mistakes Costing Construction Businesses Thousands (And How to Fix Them)

Avoid these errors that can cost your construction company money.

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Accounting Services
December 5, 2025

5 Essential Steps to Launch Your Small Business the Right Way

Use these tips to make sure you start your small business correctly.

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December 5, 2025

5 Critical Mistakes Service Businesses Make That Kill Profitability (And How to Fix Them)

Service business owners can increase their profits by avoiding these common mistakes.

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December 5, 2025

Tax Planning for Dummies: What Every Small Business Owner Needs to Know

Save money on your taxes with these essential tips for small business owners.

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Contractors
December 5, 2025

The Smart Contractor's Guide to Equipment Purchasing: Sales vs. Expense Models That Maximize Profitability

Use these tips to maximize your profits.

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Accounting Services
December 5, 2025

5 Critical Reasons Why Small Business Owners Should Work With an Accounting Firm (Not a DIY Tax Software)

Learn why it's essential for small business owners to hire an accountant instead of doing it themselves.

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Power Washing Companies
December 5, 2025

Stop Overpaying: 7 Tax & Growth Strategies Every Pressure Washer Must Know

Save money on taxes with these essential tips for pressure washer contractors.

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Contractors
December 5, 2025

How Tile Contractors Can Grow Your Business and Increase Profits: Expert CPA Guidance from Performance Financial

Use these tips to increase profits as a tile contractor.

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Power Washing Companies
December 5, 2025

The Contractor's Equipment Dilemma: How Smart Depreciation Planning Transforms Your Tax Strategy

Contractors can use these tips to plan for equipment depreciation.

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Power Washing Companies
December 5, 2025

The Small Business Retirement Plan Strategy Every Contractor is Missing: How to Save Thousands in Taxes While Building Wealth

Power washing contractors can reduce their taxes with these essential tax tips.

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Power Washing Companies
December 5, 2025

The "While We're Here" Strategy: How Service Businesses Stop Hemorrhaging Money on Drive Time

Stop losing money while driving to appointments with these essential tips.

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Contractors
December 3, 2025

Iowa Tax Credits Construction Companies Miss: Section 179, Bonus Depreciation, and More

Contractors can save thousands on their taxes with these must-know tax deductions.

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Contractors
December 2, 2025

Des Moines Metro Growth Areas: Where Smart Contractors Are Building

Check out the fastest growing areas in Des Moines, IA.

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Contractors
December 2, 2025

Navigating Des Moines Building Codes & Permit Requirements: A Contractor's Financial Guide

Make sure you follow these building codes and regulations.

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Contractors
December 2, 2025

Iowa Winter: How Smart Contractors Manage Seasonal Cash Flow

Keep your cash flow strong all winter with these tips.

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Des Moines
December 2, 2025

Des Moines City Council Decisions: What Small Business Owners Need to Know

Stay up to date with recent decisions made by the Des Moines City Council.

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November 11, 2025

Tax Preparation Services in Pella, Iowa: Year-Round Tax Planning vs. Tax Season Scrambling for Local Businesses

Prepare for taxes long before Tax Day. Learn how year-round tax planning can benefit your business.

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November 11, 2025

Small Business Bookkeeping Services Near Pella, Iowa: How Local Contractors Avoid Costly Accounting Mistakes

Learn how you can save money at your Pella contracting business by hiring an expert.

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Accounting Services
November 11, 2025

Pella Iowa CPA Services: S-Corp vs LLC - Which Business Entity Saves Pella Contractors More Money?

Should contractors file as an S-Corp or LLC? Check our these tips from our experts.

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Tax Tips
November 11, 2025

CPA Near Pella, Iowa: Top Tax Reduction Strategies for Local Small Businesses

Are you looking to reduce your taxes? Consider these tips from our top-rated CPAs near Pella, Iowa.

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Tax Tips
November 11, 2025

The Construction Business Owner's Complete Guide to Q4 Tax Preparation: Strategic Planning That Saves Thousands

Use these tips to prepare for tax season now.

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Tax Tips
November 11, 2025

Top Tips from Accountants: How Construction Companies Can Prepare for Tax Season in Q4

Construction contractors should start preparing for tax season now. Use these tips from our expert tax accountants!

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Contractors
October 9, 2025

Job Costing vs. Guessing: Why 80% of Contractors Fail at Profitable Bidding (And How to Join the 20% Who Don't)

Are you making these common job costing mistakes? Learn how to avoid them.

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Contractors
October 9, 2025

Cash Flow Forecast for Contractors: The 7-Step System to Never Run Out of Money Mid-Project Again

Don't risk running out of funding for your project. Use these cash flow forecasting tips.

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Contractors
October 9, 2025

From Guesswork to Goldmine: How Accurate Job Costing Can Transform Your Construction Business's Cash Flow in 90 Days

Are you losing money with poor job costing? Learn how to improve your cash flow.

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Contractors
October 9, 2025

The Hidden Cash Flow Killers: 5 Job Costing Mistakes That Are Bleeding Your Construction Profits Dry

Are you making these job costing mistakes? Use these tips.

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Contractors
October 9, 2025

The Top Bookkeeping Questions Every Builder and Contractor Should Ask Their Accountant

Contractors must ask their bookkeeper these questions to stay organized and compliant.

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Accounting Services
October 9, 2025

Choosing Performance Financial: Why Des Moines Business Owners Are Making the Switch to Superior Accounting Excellence

Learn how our experts provide excellent accounting services to Des Moines small businesses.

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Contractors
October 9, 2025

Complete Guide to Construction Business Setup in Ankeny, Iowa: Legal, Tax & Accounting Requirements

Keep your construction company compliant with these key requirements.

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Contractors
October 9, 2025

Why Ankeny Construction Companies Need Specialized CPAs: 8 Tax Deductions You're Missing

Check out these can't-miss tax deductions for construction companies in Ankeny, Iowa.

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Contractors
October 9, 2025

S-Corp vs LLC for Ankeny Construction Companies: Complete Tax Strategy Guide 2025

Should Ankeny construction companies file as S-corps or LLCs? Check out these considerations.

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Contractors
October 9, 2025

Construction Job Costing Mastery: How Ankeny Contractors Save $20K+ Annually with Smart Accounting

Contractors and builders can use these essential job costing tips to save money.

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Tax Tips
October 9, 2025

Top 7 Tax Advisors Near Ankeny, Iowa: Why Construction Companies Choose Performance Financial CPA

When you're looking for a tax expert near Ankeny, Iowa, consider these top-rated pros.

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December 29, 2025

7 Game-Changing Strategies to Scale Your Epoxy Garage & Concrete Coatings Business (Most Owners Are Missing #4)

Discover how epoxy garage floor contractors are scaling past 6-figures with these 7 proven strategies. S-Corp tax savings, job costing systems, equipment deductions & more. Des Moines CPA specialists reveal insider secrets.

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Contractors
October 9, 2025

The 5 Biggest Tax Mistakes Epoxy Contractors & Concrete Coatings Contractors Make (And How to Avoid Them)

Epoxy Contractors & Concrete Coating Companies: Stop overpaying taxes! Learn the 5 biggest mistakes concrete coating contractors make & how to save $15,000-$30,000 yearly with proven tax strategies.

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Tax Tips
June 30, 2025

Must-Know Tax Deductions for Pontoon Rental Businesses

Are you missing key tax deductions for your pontoon rental business? Use these tips from our experts.

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Tax Tips
June 30, 2025

Understanding Sales Tax Rules for Boat and Pontoon Rentals

What are the sales tax rules for boat and pontoon rentals? Consider these tips.

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Contractors
June 11, 2025

The Top Accounting Firms for Home Remodelers and Contractors

Get financial expertise for your home remodeling or construction company. Check out the top accounting firms you should consider working with.

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Contractors
June 11, 2025

15 Game-Changing Tax Hacks for Basement Remodeling Companies in Des Moines & The Midwest

Check out these essential tax-saving tips for basement finishing companies.

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Contractors
June 11, 2025

The 12 Biggest Bookkeeping Tips for Home Remodelers and Contractors

Keep your finances organized and compliant with these essential bookkeeping tips for home renovation companies and contractors.

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Contractors
June 11, 2025

Top Accounting Tips for Custom Home Builders

Want to grow your custom home building company and save money? Use these essential accounting tips.

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Contractors
June 11, 2025

4 Biggest Tax Reduction Strategies for Painting Companies - Save $15K-$35K Annually

4 ways painters and painting contractors can dramatically lower their taxes.

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Contractors
May 6, 2025

7 Essential Bookkeeping Tips for Commercial Painting Contractors

Keep your commercial painting company's books accurate and compliant with these must-know bookkeeping tips.

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Contractors
May 6, 2025

Maximizing Success Through Job Profitability Analysis: How Performance Financial Helps Construction Companies Thrive

See how a job profitability analysis from Performance Financial can help construction companies grow.

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May 13, 2025

Job Profitability Analysis Tips for Construction Contractors

Get insights into your financials with job profitability analysis tips for construction contractors.

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Contractors
April 22, 2025

Top Accounting Firms for Electricians (Why Performance Financial Is No. 1)

Electrical contractors have unique needs. Find out which accounting firms can handle their finances.

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April 11, 2025

Top Tax Hacks for Optometrists

Want to lower your taxes? Consider these must-know tax hacks for optometrists to reduce your taxes.

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March 19, 2025

Top Accountants for Landscaping Businesses

Check out these top-rated accountants for landscaping contractors.

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Contractors
April 18, 2025

13 Costly Tax & Growth Mistakes Custom Home Builders Make | DIY Accounting Risks

Custom home builders: Are you making these 13 costly tax & financial mistakes? Discover how amateur accounting and disengaged tax preparers could be costing you $20,000+ annually in unnecessary taxes.

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Contractors
May 13, 2025

How to Improve SEO & Profitability for Custom Home Builders | Data-Driven Growth

Iowa custom home builders: Discover how construction-specific accounting and job costing can dramatically improve both your SEO effectiveness and project profitability. Learn to align your marketing with your most profitable projects.

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June 11, 2025

10 Most Powerful Tax Write-Offs for Custom Home Builders | Save $25K+

Iowa custom home builders: Discover 10 powerful tax reduction strategies beyond basic deductions. Learn how S-Corps, strategic depreciation, and family employment can save you $25,000+ annually in taxes. Get your tax analysis today!

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Contractors
April 18, 2025

The Remodeler's Revenue Roadmap: 7 Marketing Strategies to Scale Your Business

Iowa remodeling contractors: Discover how to break through revenue plateaus with proven marketing strategies and financial guidance. Learn to build consistent project flow, maximize ROI, and create sustainable growth for your remodeling business.

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Contractors
April 18, 2025

The Painter's Growth Blueprint: 7 Marketing Strategies to Scale Your Business

Iowa painting contractors: Learn how to break through revenue plateaus with proven marketing strategies and financial clarity. Discover how to build consistent lead flow, maximize ROI, and create sustainable growth for your painting business.

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April 18, 2025

S-Corp Tax Strategy for Excavation Contractors: Save $20K+ on Heavy Equipment

Excavation Contractors: Discover how S-Corp status combined with strategic equipment depreciation planning could save you $20,000+ annually in taxes. Learn to maximize Section 179 deductions and optimize your heavy machinery investments!

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April 18, 2025

The Remodeler's Tax Blueprint: S-Corp vs. LLC for Iowa Contractors | Save $15K+

Iowa remodelers & general contractors: Learn how switching from LLC to S-Corporation could save you $15,000+ annually in taxes. Get construction-specific guidance on salary requirements, timing, and implementation. Free tax analysis!

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April 18, 2025

S-Corp vs. LLC for Painting Contractors: Save $11,000+ in Taxes Annually

Iowa painting contractors: Discover how converting from an LLC to an S-Corporation could save you $11,000+ annually in taxes. Learn about salary vs. distributions, timing your conversion, and avoiding costly IRS mistakes. Book your S-Corp analysis today!

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Contractors
April 18, 2025

S-Corp vs. LLC for Iowa Home Builders: Save $20K+ in Taxes Annually

Home builders: Discover how converting from an LLC to an S-Corporation could save you $20,000+ annually in taxes. Learn about salary vs. distributions, timing your conversion, and avoiding costly IRS mistakes. Book your S-Corp analysis today!

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Contractors
April 18, 2025

7 Tax-Cutting Strategies for Iowa Painting Contractors | Save Thousands

Iowa painting contractors: Discover 7 proven strategies to slash your taxes and accelerate business growth. Learn how S-Corps, retirement plans, and smart marketing can save you $15,000+ annually. Book your tax analysis today!

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April 18, 2025

Iowa Contractors: 13 Proven Strategies to Slash Taxes & Scale Your Business

Iowa general contractors and remodelers: Stop overpaying taxes! Implement these 13 proven strategies to significantly reduce your tax burden, increase profitability, and create sustainable business growth. Expert advice from Performance Financial.

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Contractors
April 18, 2025

13 Tax-Saving Strategies for Iowa Custom Home Builders | Reduce Taxes Now

Discover 13 powerful tax reduction and growth strategies specifically for custom home builders in Iowa. Learn how S-Corps, retirement plans, and smart marketing can save you thousands annually while accelerating business growth.

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February 27, 2025

Top Tax Reduction Hacks For Realtors and Real Estate Brokers

Use these tips to reduce your taxes.

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February 15, 2025

Self-Employment Taxes: What You Need to Know

Before filing your taxes as a self-employed person or freelancer, make sure to consider these tax tips.

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January 24, 2025

Best Bookkeepers & Accountants for Construction Contractors

Check out these top-ranked bookkeepers for construction companies.

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Contractors
February 4, 2025

Budgeting for a Solid Foundation: Financial Planning for General Contractors

Create a comprehensive budget for your general contracting business and achieve your financial goals. Get expert tips and resources.

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Contractors
October 9, 2025

Steady Flows: Cash Flow Management for Construction Companies

Maintain a healthy cash flow and keep your construction business running smoothly. Learn effective cash flow management strategies.

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Contractors
November 11, 2025

Passing the Blueprint: Succession Planning for Construction Businesses

Plan for the future of your general contracting business with a comprehensive succession plan. Secure your legacy and ensure a smooth transition.

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Contractors
October 9, 2025

What's Your Construction Business Worth?

Determine the true value of your general contracting business. Get a professional valuation and understand your company's worth.

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Contractors
November 11, 2025

Fueling Your Growth: Financing Options for Construction Companies

Secure the funding you need to grow your general contracting business. Explore financing options and get expert advice.

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Contractors
October 9, 2025

Thriving in the Construction Industry: Accounting Services for General Contractors

Get comprehensive accounting services tailored to your general contracting business. From bookkeeping to tax planning, we've got you covered.

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Contractors
October 9, 2025

General Contractor KPIs: Track Your Numbers & Boost Your Profit Margins

Track the right key performance indicators (KPIs) to understand your general contractor business' financial health and drive profitability.

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Contractors
October 9, 2025

More Time On-Site: Outsource Your Bookkeeping, General Contractor

Reclaim your valuable time by outsourcing your general contractor bookkeeping. Focus on what you love – constructing incredible projects.

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Deadlines are everywhere for tax strategies, and your business deserves the peace of mind, and strategic advantage we can provide.

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