We’re fast approaching the one-year anniversary of the passage of the Tax Cuts and Jobs Act (TCJA). All these months later, the law continues to challenge tax experts and business owners alike as they try to implement strategies to maximize the tax savings from the act. One example is the new tax deduction for qualified […]
Category: Construction
Tips on managing and reducing payroll costs
Every construction company must pay its employees, so some payroll costs are unavoidable. But precisely how you should go about paying your employees can change over time. What made sense a few years ago may not be as logical or efficient now. Let’s look at some ways contractors can streamline payroll tasks to keep costs […]
Which accounting system upgrades should I look for?
Construction accounting is unique and complex. Each of your projects serves as an individual profit center with its own revenue, expenses and payroll. This means contractors shouldn’t use an off-the-shelf system. When looking to upgrade, focus on industry-specific features such as: Job-cost tracking. Contractors need to track expenses according to projects, cost codes, classes, and […]
Project management solutions may lie in the cloud
A good project manager knows communication is key to delivering a job on time and within budget. When team members can’t easily obtain project data, the result is often wasted time as they track down that information or, worse, duplicate efforts. Meanwhile, profit-eating costs mount and schedule overruns can occur. Many top-level construction companies are […]
Take a keen interest in your company’s insurance protection
Not many people wake up in the morning wanting to talk about insurance. But it’s important for contractors to take a keen and ongoing interest in their company’s coverage. It needs to meet not only the bid requirements of every project you take on, but also the wider needs of your construction business as it […]
Learn the ABCs of activity-based costing
Your latest project might be running on budget, but how can you determine whether your work in progress is really boosting profits or hurting the bottom line? Or, if a job is exceeding forecasted costs, how do you break it down to identify the problem? Many construction companies have addressed such issues by measuring the […]
Could a CRM system help me win more jobs?
My construction company recently celebrated its 15th year in operation and, even better, business is really heating up. My concern is that, with this lengthy history and sizable client list, so much information seems to be falling through the cracks. We try to track everything through a shared spreadsheet, but it’s kind of a mess. […]
Whipping up more profitable jobs with WIP reports
Jobsites generate many things — dust, rubble, scrap metal. But they also generate a lot of information. And extracting the right financial data from an ongoing project in an accurate, timely and easily digestible manner is critical to maintaining that job’s profitability and avoiding losses. Depending on the size and nature of your construction company, […]
What contractors should know about bonus depreciation
As projects heat up, construction company owners often find they must buy additional equipment or other assets to ensure project success and remain competitive. Because return on investment for high-dollar purchases can take years, finding the right tax deductions to help offset costs is critical to staying in the black. The good news is that, […]
New revenue recognition rules to “go live” soon
A new website or updated software “goes live” when it’s launched for widespread use. This, too, will soon be the case with an important accounting change for construction businesses that follow Generally Accepted Accounting Principles (GAAP). For privately held companies, Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, is due to go live […]