CRI Articles: Construction

Is it time to paint the town - or your construction company - red? The construction CPAs of CRI know that general contractors and subcontractors are faced with financial options every day, and we're ready with creative best practices designed to help you make the best choices for your unique business situation. Whether it's questions about working capital or bonding capacity, CRI's construction professionals are ready to serve as your business consultants. 

Entity Selection Impact for Construction Companies: Bush Tax Cuts
Partner Larry May, CPA, CVA, discusses with Construction Executive the positives of currently considering the benefits of C-Corporations for construction entities. Read on for the two major considerations when deciding the best entity for your construction business, as well as the best practice for dealing with potential double taxation issues. If you still have questions, contact CRI's construction CPAs.

Potential Cinderella Moment: Impact of 2012 "Bush Tax Cuts" Expiration
Yes, she was ultimately a princess, but Cinderella also worked hard and understood the importance of a deadline in meeting her goals. Maybe construction companies should all take her wisdom into consideration - assuming that the "Bush Tax Cuts" are allowed to expire in 2012. Specific entities and their selection for construction companies can be compared to cliques in high school: one small change can heavily impact popularity. In recent decades, the C-Corporation has declined in popularity as the entity selection of choice, and limited liability companies (LLCs), partnerships, and S-Corporations have increased in favor.

Construction Accounting: Four C's of Surety
The most successful contractors always seek to maximize bonding capacity through an ever-improving surety relationship. Given the inevitable market tightening, securing and enhancing surety bond credit is one of the single most important actions for a construction company. And surety relies on four C's: capital, capacity, character, and communication.

Construction Accounting 101: What is the Percentage-of-Completion Adjustment?
Does your accounting team understand the importance of the percentage-of-completion adjustment - particularly if you are a small or relatively new construction company? And are you aware that your income statements can be severely distorted if you are only relying on billings and haven't accurately calculated the percentage-of-completion adjustment on your in-progress construction jobs?

State of the Construction Industry 2011
Construction Business Owner discusses the challenges of 2010 in the construction industry and provides advice for 2011. Brian Barksdale, CPA shares his thoughts on working with bankers and surety companies to maintain strong relationships during this uncertain time.

Uncertainty as a Way of Life: Planning in the Road Building Business in 2011
Better Roads features Brian Barksdale, CPA, regarding the 2011 construction outlook and tips for survival in this economy.

Contractors Should Seek Surety Bonding Now
Construction Executive asks J. Dan Holliday, II, CPA, CVA, of CRI: With the bonding and insurance market tightening, why is it important for contractors to seek surety bonding now? "Given the inevitable market tightening, securing and enhancing surety bond credit is one of the most important actions a construction company can take..."

Want more construction accounting information from CRI? Visit the construction section of CRI's Blog.