Architecture and engineering firms operate on long project cycles with revenue that does not match cash, partner economics that evolve over years, and licensing obligations across multiple states.
Long-cycle projects, milestone billings, retainer arrangements, and unbilled time create real complexity around when revenue should be recognized — both for tax and for management reporting.
Architects and engineers often work on projects across state lines. Nexus, apportionment, and state-licensing implications need to be tracked deliberately.
Multi-partner design firms accumulate compensation complexity — guaranteed payments, draws, capital accounts, profit-sharing tiers — that needs revisiting as the firm changes.
Sub-contracted designers, consultants, and contract engineers — California rules (AB 5) are strict about classification, and misclassification has real consequences.
We work with Bay Area design and engineering firms on the financial side of running a project-driven practice.
Project-level revenue and cost tracking, unbilled vs. billed time analysis, WIP reporting, and project profitability monitoring.
Partner compensation modeling, capital account maintenance, buy-in / buy-out structuring, and profit-sharing tier design.
State filing requirements for projects across state lines, apportionment of income, and coordination with state-licensing obligations.
AB 5 analysis under California law, federal worker classification, and structuring of sub-contractor arrangements for compliance.
Federal IRC § 41 R&D credit qualification for engineering firms, including innovation-driven design work that qualifies under the credit.
PLLC, professional corporation, and partnership analysis with awareness of California licensing-board requirements for design professionals.
Revenue recognition for a five-year master plan project is different from a one-week consultation. Partner economics in a 12-partner architecture firm differ from a two-partner engineering practice. Multi-state nexus for a firm with projects in Nevada and Oregon needs to be managed deliberately. None of this is in a generalist CPA's toolkit.
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