Posts Tagged ‘Alicia Radar’
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.
Greenwalt CPAs is a strong believer in giving back to our community, but it is also a fun time for our employees to work together. Each year we participate in the United Way Day of Caring, the Indiana CPA Society Day of Service, and throughout the year at various volunteer activities with local not-for-profit organizations.
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 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.
Many contractors’ balance sheets will be changing in the next few years due to proposed changes that are anticipated to be made to the way leases are treated for accounting purposes. Currently, many companies lease their building, or large pieces of equipment, under operating leases. Operating leases allow for only the current year expense to be recorded on the income statement, without an impact on the balance sheet. The rules will likely be finalized in 2011, with implementation set to happen sometime later, probably January 1, 2013 or after. Companies may find their assets and liabilities being “grossed up” to account for the changes. This may require some negotiations between contractors and their bank related to their bank covenants, or discussions with their bonding company related to their bonding capacity.