Contractors often have to choose whether to lease or purchase a piece of equipment. This decision is critical because it can significantly affect a contractor’s working capital (i.e., current assets less current liabilities), which is an important ratio for sureties. With the release of the new lease accounting standard, it is even more [...]
While some tax incentives seem to be common knowledge, others often go nearly unnoticed. Watch as CRI's Dawn Steed describes overlooked deductions that contractors and manufacturers can use to their advantage.
Construction business owners have been dealt many challenges in the past several years. Although some construction indicators show improvement, many construction business owners are still addressing concerns in operating their companies. A key component in managing a construction company is accurate financial reporting. One area that needs particular attention is revenue recognition in accordance with the [...]
We all know that “cash is king” for construction companies, and, therefore, cash flow is the company’s lifeblood. Cash flow health is essential to mitigate the ever thinning profit margins, and the contract can be used as a blueprint for managing and maintaining strong cash flow. Entryway: Construction Contract Payment Terms It’s possible to negotiate [...]
Construction companies face unique business challenges that can make revenue recognition more complex. Watch Jon Heath as he describes these challenges and how construction companies can address them while abiding by the revenue recognition standard.
With fierce competition for available work, deteriorated profit margins, and difficulty finding banks willing to extend credit for construction projects, contractors know that every dollar counts. As a result, it is appealing to contractors to look back and reminisce the good old days, but there are additional reasons to “look back” that include enhancing cash [...]
Evolution of Construction State Nexus The picture of today’s construction industry is that there are a lot of service, internet, and web-based industries. Meanwhile, state nexus laws are trying to catch up, but they are not quite there yet. In the meantime, this lag has created a lot of grey area and construction state nexus exposure. [...]
Fraud happens at companies both large and small. Why should smaller companies focus on construction internal controls? One advantage for large construction companies, however, is that they are more likely to put fraud detection and prevention measures in place and catch the fraudster before the business is devastated. Small contractorsare often not in the position [...]
The rights and responsibilities of the companies involved in a construction joint venture agreement can vary greatly based on the composition of the agreement. Specific provisions of joint venture agreements may differ, but certain items should be addressed in each agreement. These include: • Purpose statement • Capital contributions by each participant (such as cash [...]
We all know the phrase, “dress to impress.” We make sure that we are making that lasting first impression by dressing up for an occasion, but this same process can be used to maximize bonding capacity and provide a firm foundation of contractor success. But what are the three keys for construction contractors to impress [...]
Now is the time for contractors to begin year-end tax planning, so take advantage of these three contractor year end strategies. Waiting until the last minute can be a costly mistake. Watch Larry May and Dean Horne discuss the timing of equipment purchases, jobs in progress, and employee and construction owner bonuses. [...]
Securing surety bond credit is one of the single most important actions for a construction company. Watch as Scott Ferguson and Dan Holliday discuss how a solid surety relationship can help contractors maximize bonding capacity.
Detailed records are essential to any construction company, especially when a change order or litigation claim is necessary. Watch Dan Holliday discuss how CRI's construction CPAs set-up cost accounting systems that detail all aspects of a project - and ultimately protect your contractor business in the event construction litigation support is needed. [...]
Do you know the three C's of surety bonding? Watch Dan Holliday explain for construction companies the three C's and the need to maximize bonding capacity.
Many contractors are susceptible to fraud due to the structure of their company, so construction fraud prevention is an important strategy. Watch Robert Coker discuss two areas on which construction business owners need to focus – job costs and segregation of duties – to help prevent fraud.
Are your construction financial statements ready for their close up? The first user of financial statements is generally not the surety but a bonding agent who represents several sureties. This bonding agent performs the first analysis and determines which surety is best suited for a particular contractor. Since sureties are the largest providers of unsecured [...]
Construction is on the rise throughout the country - to the delight of contractors. Now is the perfect time to consult your construction CPA to make sure you have the tools in place to finance the items needed to finance construction growth. Watch Larry May discuss the importance of working capital, bonding capacity, [...]
Construction companies face special management challenges that brick-and-mortar business owners can generally avoid. One of these is effectively managing a large group of employees in a remote work environment. Mobile technology, such as through mobile construction management apps, is the perfect way to bridge what was once a daunting management gap. Office Management via Smartphone [...]
Second to the intellectual capital provided by management’s knowledge and experience, a construction company’s single largest investment is typically its heavy equipment fleet. Proper management of these assets has a direct impact on construction equipment fleet profitability - and the company's ultimate success. Is Your Construction Company Equipment Fleet Profitability Maximized? To answer this question accurately, [...]
Working capital is the backbone of every construction business, and the ability to understand and maintain working capital is a vital component of long-term success. Why? Surety companies utilize a working capital calculation to determine bonding capacity. Working capital may seem like a simple mathematical calculation: CURRENT ASSETS minus CURRENT LIABILITIES = WORKING CAPITAL. Or, [...]