It's March. Tax season just ended. And your contractor buddies in Altoona are dropping their accountants like bad subcontractors.

What's happening?

Altoona contractors are finally seeing what we've been saying for years: Generic accountants are costing them $20,000-$40,000 annually in missed tax savings, poor advice, and reactive service.

And March—right after tax season—is when the pain is freshest.

You just paid a massive tax bill. Your accountant said "everything looks good." But something doesn't feel right. You're working harder than ever, making more money than ever, and somehow keeping less of it.

Meanwhile, your competitor down the street:

• Paid $35,000 less in taxes (on similar revenue)
• Opened a second location in West Des Moines
• Hired three more employees
• Bought new equipment without cash flow panic
• Seems to know something you don't

He does. He switched accountants last March.

This article reveals exactly what Altoona contractors are discovering when they make the switch from generic accounting to construction-specialized CPAs—and why March is the perfect time to make the change.

The Wake-Up Call: "I Thought My Taxes Were Fine"

The typical story:

You've worked with the same accountant for 5-8 years. Nice person. Responsive during tax season (sort of). Reasonable fees ($3,500-5,000 for business and personal returns).

But then you talk to another contractor at the coffee shop:

Him: "Yeah, my CPA saved me $32,000 last year through S-Corp optimization and equipment depreciation strategy."

You: "Wait, what? I have an S-Corp. My accountant never mentioned any strategy."

Him: "Do they do quarterly tax planning meetings with you?"

You: "No, we just meet once a year to do my return."

Him: "Bro, you need a different accountant."

The 7 Signs Your Accountant Is Costing You Money

Sign #1: You Only Hear from Them January-April

What this means: They're a tax preparer, not a tax strategist. They file returns. They don't plan.

What you're missing: Year-round strategic planning that could save $15,000-$35,000 annually.

Sign #2: They Never Ask About Your Business

Red flag questions they don't ask:

• "How many employees do you have?"
• "What's your job costing system?"
• "Are you tracking profitability by project?"
• "What equipment did you purchase this year?"
• "What's your average project size?"
• "Do you do multi-state work?"

What this means: They're treating your $800,000 construction business the same as a $80,000 freelance writer.

What you're missing: Construction-specific strategies worth $12,000-$28,000 annually.

Sign #3: They Set Your S-Corp Salary Using a Formula

Generic accountant approach:

• "Pay yourself 50% salary, 50% distributions"
• No analysis of reasonable compensation
• No consideration of retirement goals
• No discussion of QBI deduction tradeoffs

What this means: Your salary is either too high (wasting $8,000+ in payroll taxes) or too low (IRS audit risk).

What you're missing: Optimized salary strategy worth $6,000-$15,000 annually.

Sign #4: They've Never Mentioned Job Costing

If your accountant has never discussed:

• Work-in-progress schedules
• Over-billing and under-billing
• Percentage of completion revenue recognition
• Job profitability analysis

What this means: Your financial statements are wrong, your taxes are wrong, and you have no idea which projects are actually profitable.

What you're missing: Accurate financials and strategic insights worth $25,000-$50,000 in improved margins.

Sign #5: December Equipment Purchases Are a Surprise

Generic accountant in December:

• "You're going to owe $65,000 in taxes"
• "You should buy some equipment before year-end"
• "How much can you spend?"

What this means: No year-round planning, no cash flow consideration, no strategic thinking.

What you're missing: Strategic equipment timing worth $10,000-$25,000 in cash flow optimization.

Sign #6: They Charge for Every Email

"Quick question about..."

• Email response: $150
• 10-minute phone call: $200
• "Let me review your QuickBooks": $350

What this means: You're incentivized NOT to ask questions, which costs you more in missed opportunities.

What you're missing: Proactive guidance worth $15,000+ annually (that you don't ask about because it costs $200 per conversation).

Sign #7: They Have No Other Contractor Clients

When you ask "Do you work with other contractors?"

Their answer: "Oh yes, we have clients in many industries."

What this means: You're the only contractor they work with. They have no construction-specific expertise.

What you're missing: Industry-specific knowledge worth $20,000-$40,000 annually.

Real Altoona Wake-Up Call

Altoona remodeling contractor worked with generic accountant for 6 years.

March 2025: Paid $68,000 in federal and state taxes on $480,000 profit.

March 2025: Competitor mentioned paying only $42,000 in taxes on $520,000 profit.

April 2025: Requested second opinion from construction-specialized CPA (us).

What we found in 90 minutes:

1. S-Corp salary too high
   • Paying $260,000 salary (54% of profit)
   • Optimal: $160,000 salary
   • Overpaid payroll taxes: $15,300 annually
2. Missed equipment depreciation
   • $125,000 equipment depreciated over 7 years
   • Should have used Section 179
   • Lost tax savings: $18,000 in year 1
3. No retirement plan
   • Could contribute $40,000 to SEP-IRA
   • Tax savings: $14,400
4. Wrong job costing method
   • Using cash basis
   • Should use percentage of completion
   • Financial statements wrong by $87,000
5. No multi-state planning
   • Did $140,000 work in Nebraska
   • Never filed Nebraska return
   • At risk for penalties
6. No family employment
   • Two teenage kids could work summers
   • Tax savings: $7,200 annually

Total identified savings: $54,900 annually

Over the 6 years with generic accountant: $329,400 in lost wealth

His response: "I thought my taxes were fine."

No. Your taxes were filed. Not fine.

Get a second opinion on your tax situation.

What Altoona Contractors Find When They Switch

The discovery process reveals three types of problems:

Problem Type #1: Missed Tax Strategies (Past Years)

What we find in prior year returns:

Equipment Depreciation Errors:

• 70% of returns have equipment depreciated incorrectly
• Average lost savings: $12,000-$22,000 per year
• Solution: File amended returns for past 3 years

S-Corp Salary Mistakes:

• 80% have non-optimized salary/distribution split
• Average overpayment: $8,000-$16,000 per year
• Solution: Adjust going forward

Missed Home Office Deductions:

• 40% of home-based contractors never claimed
• Average lost savings: $2,400-$4,800 per year
• Solution: Implement going forward

No Retirement Planning:

• 85% had zero retirement contributions
• Average lost savings: $8,000-$18,000 per year
• Solution: Establish plan immediately

Multi-State Issues:

• 30% working out of state with no compliance
• Potential penalties: $10,000-$40,000
• Solution: File late returns, request penalty abatement

Problem Type #2: Wrong Financial Reporting (Current Issues)

What we find in QuickBooks and financial statements:

Job Costing Problems:

• 90% have inadequate or no job costing
• Can't determine project profitability
• Making decisions with wrong information

Cash vs. Accrual Issues:

• 60% using wrong accounting method
• Financial statements don't reflect reality
• Banks and bonding companies see inaccurate picture

Chart of Accounts Problems:

• 75% have poorly structured accounts
• Can't track key metrics
• Impossible to identify improvement opportunities

No Job Profitability Analysis:

• 95% don't know which job types are most profitable
• Bidding without data
• Leaving $50,000+ annually on the table in pricing

Problem Type #3: No Strategic Planning (Future Issues)

What we find in business planning:

No Growth Strategy:

• Wants to expand to West Des Moines
• Has no financial model for expansion
• Doesn't know capital needs or financing options

No Succession Planning:

• Business worth $1.2 million
• No plan for eventual exit
• Facing $240,000+ in unnecessary capital gains taxes

No Cash Flow Management:

• Seasonal business with predictable cash crunches
• No forecast or planning
• Using personal credit cards to cover payroll

No Exit Strategy:

• Working to age 70+ because "I can't afford to retire"
• Could sell business for $1.5M with proper planning
• Current trajectory: Work until you die, then family liquidates for $300K

The pattern: Generic accountants file returns. Construction-specialized CPAs build wealth.

The March Switching Timeline

Why March-April is the perfect time to switch accountants:

March: The Pain Is Fresh

You just:

• Wrote a huge tax check
• Dealt with your accountant's tax season chaos
• Waited weeks for callbacks
• Paid surprise fees for "extra work"
• Received zero strategic advice

The pain is real. The motivation is high.

April-May: Still Time to Impact 2026

Switching in April means:

• 8 months left in 2026 to implement strategies
• Can still capture most annual tax savings
• Time to correct systems and processes
• Opportunity to prevent next year's disasters

Switching in January means:

• Only 4 months left to implement strategies
• Many opportunities already missed
• Rushed implementation
• Suboptimal results

June-August: Implementation Period

New CPA uses summer to:

• Clean up QuickBooks
• Implement job costing systems
• Establish monthly bookkeeping processes
• Plan Q3-Q4 tax strategies
• Build cash flow forecasts

By September: You're positioned for optimal Q4 tax planning and strong year-end results.

September-December: Optimize Year-End

New CPA coordinates:

• Equipment purchases (strategic, not panic)
• Retirement contributions (planned, not scrambled)
• Entity structure optimization
• Multi-year tax planning

Result: Lower taxes, better financials, clear strategy.

January-March: Seamless Tax Season

New CPA files 2026 return:

• No surprises (you've planned all year)
• Accurate financials (monthly bookkeeping was correct)
• Optimized strategies (implemented in Q4)
• Smooth process (proper preparation)

Compare to old accountant:

• Tax season chaos
• Scrambling for documents
• Surprise tax bills
• Reactive decisions
• Missed opportunities

The difference: Strategic planning vs. reactive preparation.

The Switching Process: What to Expect

Most contractors fear switching is complicated. It's not.

Step 1: Initial Consultation (Free, 45-60 minutes)

What happens:

• Review your current situation
• Analyze past 2-3 years of returns
• Identify immediate opportunities
• Discuss your goals and concerns
• Explain our process and pricing

What you bring:

• Past 3 years tax returns
• Current year financials (P&L, Balance Sheet)
• List of frustrations with current accountant

What you learn:

• Specific dollar amounts you're leaving on the table
• What we would do differently
• What results to expect
• Exact pricing for our services

No pressure. No obligation. Just information.

Step 2: Transition (If You Proceed)

What we handle:

• Request files from old accountant
• Review QuickBooks setup
• Identify cleanup needs
• Create transition timeline

What you do:

• Notify old accountant (we provide template)
• Provide access to QuickBooks/software
• Answer questions about operations

Timeline: 2-4 weeks for complete transition

Step 3: Cleanup and Setup (First 60 Days)

Month 1:

• QuickBooks cleanup and optimization
• Job costing system implementation
• Chart of accounts restructuring
• Initial tax planning meeting

Month 2:

• Bookkeeping processes established
• Cash flow forecasting system
• Tax strategy implementation begins
• First monthly financial review

Result: Clean books, accurate financials, clear strategy.

Step 4: Ongoing Strategic Partnership

Monthly:

• Bookkeeping completed within 10 days of month-end
• Financial statement review
• Cash flow forecast update
• Strategic check-ins

Quarterly:

• Tax planning meeting
• Estimated payment calculations
• Strategy adjustments based on results
• Growth planning discussions

Annually:

• Q4 tax optimization planning
• Tax return preparation (no surprises)
• Business valuation and succession planning
• Goal setting for next year

The difference: You're never alone. We're with you every month, not just every April.

Real Altoona Switching Success Stories

Case Study #1: The $43,000 Discovery

Client: Altoona HVAC contractor, $680,000 annual revenue

Previous accountant:

• Fee: $4,200 annually
• Service: Tax prep only
• Results: Filed returns, minimal communication

March 2025: Switched to Performance Financial

First 90 days, we discovered:

• S-Corp salary $95,000 too high: Save $14,535/year
• No retirement plan: Save $12,600/year (tax savings on contributions)
• Equipment depreciation errors: Amend and recover $16,200
• Home office not claimed: Save $2,800/year
• Multi-state filing missed: Filed late, avoided penalties

Total first-year impact: $43,335 in savings and recovered taxes

Our fee: $9,600 annually (full-service)

Net benefit year 1: $33,735 ($43,335 - $9,600)

ROI: 351%

His comment: "I paid my old accountant $4,200 to cost me $43,000. Now I pay $9,600 to save $43,000. Best business decision I've made."

Case Study #2: The Job Costing Wake-Up

Client: Altoona remodeling contractor, $920,000 annual revenue

Previous accountant:

• Using cash basis accounting
• No job costing
• No profitability analysis

Problem: Contractor thought he was profitable. Wasn't sure why cash was always tight.

March 2025: Switched to Performance Financial

What we found:

• 8 active projects with significant over-billing (liability: $127,000)
• 4 projects significantly under-billed (asset: $98,000)
• Actual profit 22% lower than reported
• Kitchen remodels: 18% margin (thought they were 28%)
• Bathroom remodels: 31% margin (thought they were 22%)
• Additions: 12% margin (thought they were 25%)

Actions taken:

• Implemented percentage-of-completion accounting
• Built job costing system
• Analyzed profitability by project type
• Restructured pricing

Results after 12 months:

• Stopped bidding additions (low margin, high hassle)
• Focused on bathroom remodels (high margin, fast turnaround)
• Raised kitchen prices by 15%
• Overall margin improved from 16.8% to 24.3%
• Profit increased $171,000 on similar revenue

Our fee impact: Paid us $12,000 more than old accountant

Value delivered: $171,000 additional profit

ROI: 1,325%

His comment: "I was working my ass off for 16% margins and thought I was doing great. Now I'm doing less work at 24% margins. This is what accounting should be."

Case Study #3: The Multi-State Penalty Avoidance

Client: Altoona electrical contractor, $1.2M annual revenue

Previous accountant:

• Filed Iowa returns only
• Never asked about out-of-state work

Problem: Contractor did $280,000 work in Nebraska over 3 years. Never filed Nebraska returns.

March 2025: Switched to Performance Financial

We immediately identified:

• 3 years of unfiled Nebraska returns
• Potential penalties: $28,000+
• Potential interest: $6,400+
• At risk for Nebraska audit and back taxes

Actions taken:

• Filed all 3 years Nebraska returns immediately
• Requested penalty abatement (first-time offender)
• Paid taxes owed with interest
• Established ongoing multi-state compliance

Result:

• Nebraska accepted late returns
• Waived penalties completely ($28,000 saved)
• Paid only taxes owed + interest ($18,600)
• Avoided potential audit

Cost of old accountant's ignorance: $0 initially, but exposure was $52,400

Our fee for fixing: $3,200 (included in annual service)

Penalties avoided: $28,000

His comment: "My old accountant had no idea I needed to file in Nebraska. I was one audit away from a $50,000 disaster. Worth every penny."

The Cost Analysis: Generic vs. Specialized

Let's do the real math:

Generic Accountant

Annual fee: $3,500-$5,000

Services:

• Tax return preparation (business and personal)
• Basic questions answered (billed separately)
• Available January-April

Value delivered:

• Compliance (returns filed)
• Minimal strategic advice
• Reactive problem-solving

Missed opportunities:

• S-Corp optimization: -$8,000 to -$16,000
• Equipment strategies: -$12,000 to -$22,000
• Retirement planning: -$8,000 to -$18,000
• Job costing insights: -$25,000 to -$75,000
• Multi-state compliance: -$0 to -$50,000 (risk)

Total cost: $4,000 (fee) + $53,000 (missed savings) = $57,000 annually

Construction-Specialized CPA

Annual fee: $8,000-$15,000 (full-service)

Services:

• Monthly bookkeeping
• Job costing implementation
• Quarterly tax planning
• Year-round consultation
• Tax return preparation
• Multi-state compliance
• Strategic business advice

Value delivered:

• Compliance (returns filed correctly)
• Strategic planning and optimization
• Proactive problem prevention
• Business growth support

Savings captured:

• S-Corp optimization: +$8,000 to +$16,000
• Equipment strategies: +$12,000 to +$22,000
• Retirement planning: +$8,000 to +$18,000
• Job costing insights: +$25,000 to +$75,000
• Multi-state compliance: +$0 (properly managed)

Total benefit: -$12,000 (fee) + $53,000 (captured savings) = +$41,000 annually

Net difference: $98,000 annually ($57,000 generic cost + $41,000 specialized benefit)

Over 10 years: $980,000 in wealth creation

The math is clear: "Cheap" accounting is the most expensive mistake contractors make.

Why March Is THE Switching Month

Timing matters:

Switch in March-April:

• Old accountant already filed your 2025 return
• No awkward mid-year transition
• 8-9 months to implement 2026 strategies
• Clean break after tax season ends
• Maximum annual impact

Switch in June-August:

• Half the year gone
• Limited 2026 impact
• Harder to implement systems mid-year
• Still beneficial, but less optimal

Switch in October-December:

• Very limited 2026 impact
• Miss most year-end planning opportunities
• Better to wait until January
• Exception: Emergency situations

Switch in January-February:

• Immediate tax season chaos
• 2025 return preparation complicated
• Limited time for 2026 planning
• Stressful transition

The optimal window: March 15 - May 15

• Tax season over (for S-Corps) or winding down
• Prior year returns filed
• Plenty of time for current year strategies
• Clean transition timing

Schedule your March switching consultation.

What to Ask Your Current Accountant Before Switching

Give them a chance to improve. Ask these questions:

1. "Can you show me 5 tax strategies you implemented for me in 2025?"
   • If they struggle to name even 3 specific strategies, that's a problem.
2. "What's your experience with construction contractors?"
   • If you're their only contractor client, you're getting generic advice.
3. "Can we set up quarterly tax planning meetings?"
   • If they say "we don't do that" or want to charge $500 per meeting, you need someone else.
4. "Do you provide monthly bookkeeping or just annual tax prep?"
   • If they only do tax prep, you're missing 90% of valuable accounting services.
5. "Can you analyze my job costing and project profitability?"
   • If they don't know what job costing is, run.

If their answers don't give you confidence, it's time to explore other options.

The Performance Financial Difference

We're not another generic accounting firm hoping to get contractor clients. We specialize exclusively in construction contractors and trades businesses.

What Makes Us Different

Construction Industry Focus:

• 90% of clients are contractors and trades
• We speak your language
• We understand job costing, retention, progress billing
• We know construction-specific tax strategies

Year-Round Strategic Partnership:

• Monthly bookkeeping with job cost tracking
• Quarterly tax planning meetings
• Unlimited consultation (no surprise fees)
• Proactive guidance (we call you, not just react)

Aggressive-But-Defensible Tax Strategy:

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

Transparent, Value-Based Pricing:

• Flat monthly fee (no surprise charges)
• ROI guarantee (we save more than we cost)
• All-inclusive service (bookkeeping, tax prep, planning, consultation)

Local Expertise:

• Altoona and Des Moines metro focus
• Iowa-specific strategies
• Understanding of local construction market
• Relationships with local lenders, bonding companies, suppliers

Our Switching Guarantee

If you switch to Performance Financial and we don't save you at least 2X our annual fee in the first year, we'll refund the difference.

Example:

• Our fee: $10,000
• Minimum guaranteed savings: $20,000
• If we only save you $15,000, we refund $5,000

We've never had to issue a refund. Average first-year savings: 3.5X our fee.

Our Altoona accounting services extend throughout the Des Moines metro including Des Moines, West Des Moines, Ankeny, Johnston, Clive, and Grimes.

Learn from Altoona contractors like Altoona Premier Construction, Metro Altoona Builders, Altoona HVAC Specialists, Prairie Construction Group, and Altoona Electrical Services who made the switch and immediately saw $25,000-$55,000 in annual savings.

Stop paying for mediocre accounting. Start building wealth with specialized expertise.

Schedule your free second opinion today →

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