By Jaime Exley, CPA, Director of Accounting Solutions
ASL Construction Group
“The only constant in life is change” – Heraclitus
Every contractor understands the reality that construction projects are complex and have many moving parts. The ways in which a contractor manages changes during a project significantly impacts project profitability and cash flow. In many cases, construction companies’ reputations rise and fall with their ability to successfully navigate changes in project scope. (more…)
By Deepa Bhat, CPA, CFE, ACA, Assurance & Advisory Principal
ASL Construction Group
It’s been a while since we’ve had a deep dive article on work in progress (WIP) schedules (to refresh your memory, see Red Flags on a Contractor’s Work in Progress Schedule). As I review the WIP schedule for a new client, I find myself referring to this article for all the recommendations I’d like to make to this client. A few additional observations are noted below: (more…)
By Rob Trammell, Tax & Advisory Principal
ASL Construction Group
Labor Shortage
The construction industry, like almost all industries, is facing a shortage of available workers. Many companies could be doing more work if they were able to find the employees to staff the jobs. In addition, the workers you currently have are in high demand. There are many other competitors and companies actively looking to hire. (more…)
By Becky Watson, CPA, Audit Manager
ASL Construction Group
I had the opportunity to interview Ralyssa Robinson, CRIS, MLIS, a Commercial Insurance Broker with Bozzuto & Associates Insurance Services, and pick her brain about top insurance concerns for contractors, and how they can minimize risk and prepare for today’s working environment. (more…)
By Deepa Bhat, CPA, CFE, ACA, Principal
ASL Construction Group
The COVID-19 pandemic created challenging circumstances for many Bay Area construction contractors. The combination of government orders and fear of virus transmission led to the delay or cancellation of many scheduled projects. And unfortunately, even prior to the COVID-19 pandemic, construction companies were dealing with another challenging situation, employees and vendors perpetrating fraud schemes against the company. According to the ACFE 2020 Report to the Nations, the median fraud-related loss experienced by construction companies was $200,000 per incident (based on investigations that occurred between January 2018 and September 2019). This means, construction is in the top six of the highest median loss experienced, behind mining at $475,000; energy at $275,000; real estate at $254,000; telecommunications at $250,000; and health care also at $200,000. This unfavorable ranking reflects the need for construction companies to do more to prevent and detect fraud schemes to limit losses. (more…)
By Deepa Bhat, CPA, CFE, ACA, Principal
ASL Construction Group
I was once again at my annual Board retreat (virtual, alas!) for the Builders’ Exchange of Santa Clara, and came away with some fascinating data – both historical and predictive. Like many of us, I was curious to understand the impact of COVID-19 on this industry in 2020. These were the top takeaways from this meeting: (more…)
By Deepa Bhat, CPA, Principal
ASL Construction Group
I recently attended our annual Board retreat for the Builders’ Exchange of Santa Clara, and came away with some fascinating data – both historical and predictive. As someone who routinely works with contractors, I was intrigued by the statistics and forecast data presented to the group. Here’s a list of my top takeaways from the meeting: (more…)
By Becky Watson, CPA, Audit Manager
ASL Construction Group
The end of the year is coming fast and with it comes the requirement to adopt FASB ASC Topic 606 Revenue from Contracts with Customers by all calendar year-end private companies (this standard was applicable to public companies for calendar year 2018). If you have not yet implemented the new accounting standard, here are a few items to consider. (more…)
By Deepa Bhat, CPA, Principal
ASL Construction Group
As we were wrapping up the reviewed financials for my General Contractor client, I asked the Controller, “what are some of the issues often overlooked by contractors as it relates to accounting?” And she was happy to oblige me with her top three issues for contractors to consider for better reporting: (more…)
