Auditors commonly use confirmations to verify such items as cash, accounts receivable, accounts payable, employee benefit plans and pending litigation. Under U.S. Generally Accepted Auditing Standards, an external confirmation is “a direct response to the auditor from a third party either in paper form or by electronic other means, such as through the auditor’s direct […]
Provide Employee Parking? Here’s What The IRS Wants To Know
Many offices, plants and other business facilities are once again filled with real, live people. And those hard-working employees need somewhere to park. If your company provides parking as a fringe benefit — either on or near your premises or at a location from which employees commute — the IRS may take an interest in […]
Last Call For Lease Accounting
The updated lease accounting standard is currently in effect for private companies. After several postponements during the pandemic, the Financial Accounting Standards Board (FASB) voted unanimously to move forward with the changes. That means private companies and private not-for-profit entities that follow U.S. Generally Accepted Accounting Principles (GAAP) must adopt the new standard for fiscal […]
Take A Balanced Approach To Retirement And Estate Planning Using A Split Annuity
If you’re approaching retirement or have already retired, one of the biggest challenges is balancing the need to maintain your standard of living with your desire to preserve as much wealth as possible for your loved ones. This balance can be difficult to achieve, especially when retirement can last decades. One strategy to consider is […]
Thinking about converting your home into a rental property?
In some cases, homeowners decide to move to new residences, but keep their present homes and rent them out. If you’re thinking of doing this, you’re probably aware of the financial risks and rewards. However, you also should know that renting out your home carries potential tax benefits and pitfalls. You’re generally treated as a […]
Proper Accounting For Change Orders Makes All The Difference
If there’s any aspect of the construction business that gives you mixed feelings, it’s probably the humble — or in some cases not-so-humble — change order. On the one hand, the circumstances that give rise to change orders tend to be disruptive and often cause confusion or even conflict between contractors and project owners. On […]
NO MORE DRAMA: Build stability and value into your succession plan
You need look no further than the hit TV show “Succession” to see how lack of a clear succession plan can tear a family — and business — asunder. Although the power struggles and drama are certainly heightened on the show, the dangers of failing to think ahead about leadership change are anything but fictional […]
What Is Bonding Capacity, Really?
Many construction companies rely on their ability to procure surety bonds to win projects. Owners of those jobs — government agencies in particular — often require bonding to guarantee that work will be completed one way or another. As you’re likely aware, contractors are urged to manage their financials carefully to preserve and even increase […]
6 Ways To Fortify Your Cybersecurity Defenses
Small to midsize businesses might assume hackers won’t bother with them. But construction companies of any size are indeed a prime target for cybercriminals. In fact, construction was the top industry hit by ransomware attacks between 2020 and 2021, according to a report by NordLocker. The encryption software firm analyzed 1,200 companies across 35 industries […]
Tax considerations when adding a new partner at your business
Adding a new partner in a partnership has several financial and legal implications. Let’s say you and your partners are planning to admit a new partner. The new partner will acquire a one-third interest in the partnership by making a cash contribution to it. Let’s further assume that your bases in your partnership interests are […]