Four ways contractors are using RFID technology

Radio frequency identification ("RFID") technology has proven to be a powerful tool that can help contractors manage equipment and materials, reduce theft, enhance efficiency, and improve safety. Electromagnetic fields identify and track RFID tags — tiny computer chips with attached antennas — affixed to various objects. Contractors can read these tags remotely on a laptop or mobile device.

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Topics: Accounting Tips, Tax, Construction

Keeping an eye on costs and cash flow…

Ways to keep your profits on track

On any given morning driving into the office I pass 3-4 construction sites.  In just the last month I’ve seen a small office building be demolished, cleared, and a pad being laid for a new building.  Commercial and residential construction continues to flourish in the DFW Metroplex. While this is great news, there is a down side to this trend that contractors must be on the lookout for. 

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Topics: Accounting Tips, Construction

Don’t Neglect the Cost to Complete

On long-term construction projects, it’s critical for contractors to have systems in place to accurately estimate the cost to complete (“CTC”). Knowing a project’s CTC helps you develop a more accurate picture of the project’s performance to date, avoiding surprises that can hurt your profitability and shake the confidence of lenders and sureties. By getting a handle on your CTC early in a project, you have an opportunity to address problems that are hindering your productivity or otherwise increasing your costs.
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Topics: Construction

Why You Should Keep a Close Eye on Your Estimates

I think everyone would agree with the statement that a strong foundation is key to a successful project. The foundation is the base for which everything is built on so it must be able to bear the burden. In constructing the foundation, you have to consider many factors ranging from the ground it is being built on to the load it must help support. A solid foundation will stand the test of time whereas a poor foundation can lead to costly repairs.

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Topics: Accounting Tips, Construction

Local Associations Welcome LGT Aboard

Posted by Lee Ann Collins, CPA, Managing Partner on Jan 26, 2016

Effective January 1, 2016, Brad Gross, Partner, and Shea Kracheck, Principal, at Lane Gorman Trubitt, PLLC (“LGT”), have become board members of local organizations. Gross joins the 2016 TEXO board, a Dallas/Fort Worth local collaboration of two national construction industry organizations, and Kracheck accepted a board role at the Commercial Real Estate for Women’s Dallas Chapter (“CREW Dallas”).

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Topics: Firm News, Real Estate, Tax, Construction

Lease Accounting Update

On November 11, 2015 the FASB voted 6 to 1 to move forward with new lease accounting guidance that would require companies to include lease obligations on their balance sheets.

Under current lease accounting standards, most leases are not reported on a lessee’s balance sheet and sometimes the amounts involved can be substantial. There are two types of leases—capital and operating. In a capital lease, the lessee recognizes an asset and liability on the balance sheet while under an operating lease, it does not.

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Topics: Auto, Accounting Tips, Construction

Exploring IRA Investments in Commercial Real Estate

Posted by lgtcpa on Oct 27, 2015

Investors have used self-directed IRAs to invest in residential real estate for some time now. But savvy investors can also direct those funds toward commercial real estate, which typically provides higher returns and attractive tax benefits.

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Topics: Real Estate, Tax, Construction

8 Tips for Improving Work-Site Productivity

Posted by lgtcpa on Apr 29, 2015

In an industry as labor-intensive as construction, few things can hurt a contractor’s profitability more than unproductive workers. Here are eight tips for improving productivity.

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Topics: Construction

Simpler Accounting Option Now Available for Leasing Entities

Posted by lgtcpa on Feb 17, 2015

Last year, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-07, Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements. This guidance offers private companies a simpler way to account for certain related leasing entities. Construction businesses that adopt the alternative can avoid the potentially costly variable interest entity (VIE) analysis associated with these entities and need not consolidate these entities on their financial statements.

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Topics: Accounting Tips, Construction

Promotions at LGT

Posted by lgtcpa on Jan 27, 2015
Lane Gorman Trubitt, PLLC ("LGT") welcomes new leadership with two significant promotions in January. Lee Ann Collins, Partner, has been named the fourth managing partner of LGT in its 65 years of business and Patrick Reilly has become a principal of the assurance services department.

“LGT’s success has always been based on the team efforts of our people. Inevitably, any change in leadership will take us in new directions and I am eager to see where that will be,” said Bob Knight, partner at LGT.

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Topics: Auto, Firm News, Construction