It is a well-known fact that best in class contractors prepare a work in progress (WIP) schedule on a regular basis. Not only does this practice allow the users of the financials, such as lenders and bonding companies, identify early warning signs, it enables contractors to better measure their progress on jobs and be proactive in seeking change orders and contract revisions. As a constant reviewer of contractor financials, I have found the following most common red flags on WIP schedules that are worth mentioning: (more…)
By Deepa Bhat, CPA, Audit Principal
ASL Construction Group
These days, a lot of our business gets done on mobile devices, whether we are checking e-mail, tracking appointments or even reviewing plans and paperwork. Smartphones and tablets have given us the ability to accomplish as much in the field as we would at our desk. This is especially true if you are working in the construction industry as you are likely always on the go and moving from site to site.
Being able to manage your people and projects from the field may be convenient, but it also introduces new security concerns. Malware and viruses designed to steal information and, in some cases, your money are becoming more prevalent on mobile devices. Distractions at the job site can also cause you to let your guard down, leaving you vulnerable to scams and other attacks. (more…)
When surety underwriters review your financial statements, they are looking for evidence of sound financial condition. Every underwriter has its own standards and expectations, but here are five key performance indicators (KPIs) many bonding companies look at closely: (more…)
By Abe Livchitz, Senior Tax Manager
ASL Construction Group
Most contractors are very careful to keep a close eye on project costs such as labor and materials. But direct job costs like these are only part of the picture.
It is equally important to have a clear understanding of indirect costs such as rent, utilities, taxes and insurance. These costs must be accurately and consistently allocated among the various projects the company undertakes. (more…)
Earlier this year, the Financial Accounting Standards Board (FASB) issued its long-awaited revised lease accounting standard. The new standard – Accounting Standards Update (ASU) No. 2016-02, “Leases (Topic 842)” – could have a significant impact on many contractors that lease vehicles, equipment or buildings. (more…)
By Abe Livchitz, Tax Manager
Contractors are unique clients operating in a specialized industry. They are resourceful, creative, thrive working under pressure of tight deadlines and constantly racing to stay ahead of economic downturns. To honor their uniqueness the tax code allows contractors to use two accounting methods that are distinctive to their business. (more…)
By Carol Wagner, Principal
With its purpose to provide health care for all individuals, the Affordable Care Act is an interesting blend of health insurance benefits, payroll considerations, and tax implications – the perfect storm for businesses. Companies can turn to professional service advisors to help weather this storm, including payroll service providers, health insurance brokers, and their tax professionals.