Archive for the ‘Construction’ Category
By Alicia Rader, CPA, Manager | Tim Ayler, CPA, Partner
Team Members of the Construction Services Group
What comes to mind when you hear the word “lean”? Is it a fit person or a certain cut of beef? What about when you hear the words “lean construction”? The lean production concept has flourished in the manufacturing industry for years, but has been severely under-utilized by contractors despite evidence that implementation will improve the entire construction process for both the contractor and the consumer. This article will highlight the potential benefits of implementing lean construction concepts and how to begin thinking and operating lean.
By Tim Ayler, CPA, Partner and Shaun King, Audit Senior | Members of the Construction Services Group
As the economy slowly begins to stabilize, so too is the construction industry. In turn, more contractors will be in demand for work. To help obtain this work, contractors across the state are relying on surety bonds. A surety bond is a guarantee from a surety to a project’s owner that a general contractor will adhere to the provisions of a contract.
by Tim Ayler, CPA | Partner and Director of the Construction Services Group
As the year end approaches, many companies are beginning to worry about paying taxes and begin looking for those tax deductions that are not obvious to them. This is about the time when I usually get a question about donating inventory as a tax deduction, and whether it would be beneficial to get rid of slow moving inventory in order to take advantage of a tax break.
By Tim Ayler, CPA, Partner, Director of Construction Services Group | Alicia Rader, CPA, Manager, Construction Services Group
Financial reporting on an executive level and project level is essential for a construction company to stay afloat and thrive. Executive-level reports provide an overall picture of the company’s financial situation while project-level reports are specific to each individual job’s performance. Making sure the information is accurate and timely, along with using the reports wisely will ensure the company’s overall health and increase the company’s potential for continued growth and profitability.
by Tim Ayler, CPA, Partner, Director of the Construction Services Group and Brian Enright, CPA, Member of Construction Services Group
In general, contractors’ financial statements and job schedules look very different than they did a few years ago. Few contractors came away from the initial downturn in the economy unscathed, and are now feeling the effects of the ‘new’ normal. In most cases, all components of the balance sheet have declined as contract volume has declined and margins have been squeezed.
by Tim Ayler, CPA, Partner, Director of the Construction Services Group | Shaun King, Member of the Construction Services Group
Every day people make plans that don’t go exactly as planned. For those in the construction business, adjustments to plans aren’t always as simple as making a phone call or switching a schedule. Many times, for a contractor to get paid there needs to be a change order issued. As with any adjustment in plans, there are many items to consider.
by Brandon Cook, CPA | Partner, Tax Services Group and Member of the Construction Services Group
In all businesses everyone knows that cash is king. This is especially true in the construction industry. In the new reality of tight margins, high retainage percentages, and slow-paying contracts, every bit of cash a contractor can get their hands on can be vital to a company’s operations. The look-back calculation, which is required for many contractors, could put more cash into your pocket.
by Tim Ayler, CPA and Alicia Rader, CPA | Team Members of the Construction Services Group
Many contractors equate success to winning bids. While that certainly is partially true, there are several other factors which determine how successful the bidding process really is. As of late, many contractors are putting less markup in their bids in order to be more competitive and to increase their chances of winning the work. Others are struggling to win bids so they are expanding their geographic boundaries or bidding on types of work that they have not successfully completed in the past. Whatever your construction company is doing to win bids, we hope it has contributed to your company’s profitability.
by Brandon Cook, CPA | Partner, Tax Services Group and Member of the Construction Services Group
The IRS has once again postponed the effective date on the implementation of mandatory 3% withholding on payments to businesses that contract with the federal, state, and/or local government entities. The effective date is now for payments made after December 31, 2012.
by Brian Enright, CPA and Tim Ayler, CPA | Team Members of the Construction Services Group
By most accounts an iPad (or any PC tablet) is considered an entertainment device or simply a convenient, portable way to check email on a business trip. However, with new construction-based applications and tough protection cases, the iPad is showing that it too belongs on the jobsite.