In December, the Republican led Congress enacted the most wide ranging tax reform legislation since 1986. Provisions will impact both personal and business tax liabilities beginning in 2018. The legislation contains changes that can both help and hurt a contractor’s bottom line. Significant provisions include: (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…)
The issue of roof repairs and replacement presents an age-old dilemma for tax professionals and our clients. Generally (and most often optimally), one hopes that such repair, or even replacement costs, can be expensed in the year incurred. But the analysis required to determine what should be done is not so simple, especially with the recent issuance of the Tangible Property Regulations by the IRS.
To get to the best outcome, we need to raise insightful questions with our clients regarding their roofing system.
The issues related to proper worker classification impact many businesses, including contractors. The rules are often unclear and their application is based on each employer’s specific facts and circumstances. An Internal Revenue Service or California Employment Development Department audit resulting in the reclassification of workers can have a significant bottom line impact. As a result, it is important to correctly determine if your workers are employees or independent contractors. (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 Steve Carter, Principal
During last December’s AICPA National Construction and Real Estate Industries Conference, I attended a break-out session discussing cash flow for contractors. It was outstanding! How often does one talk about how vital cash flow is to the construction business? The phrase “Cash is King” cannot be more important for contractors.
Let’s talk about what cash flows means, what goes into creating positive cash flows, and best practices to maximize cash flows. (more…)