Construction companies may be on the brink of a digital revolution, thanks in part to the coronavirus pandemic. The construction industry has been slower than other industries to adopt digital technology, but COVID-19 is spurring companies to be innovative and quickly find effective solutions to track projects, improve collaboration, train workers on new protocols, and reduce costs.
Cybersecurity is a major issue that many companies face. As we integrate more technology into our business, our business becomes more susceptible to hacks and other corruption. The construction industry is no different. Construction companies are using technology to make working on and off site easier and keeping communication between various employees accessible.
Financial statements are an essential part of understanding the operating results for every contractor. Between the balance sheet, income statement, and statement of cash flows, financial statements can provide a large amount of data, but that data is only a snapshot of the results for a specified period (typically a month or year). How can you leverage this data to provide you with some key financial ratios or key performance indicators (KPIs)?
In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-02, Leases (Topic 842), which made significant changes to lease accounting. These new rules are in effect for private companies with fiscal years beginning after December 15, 2019, in other words, 2020 for companies with a calendar year end. While publicly traded business entities are already using the new standard, it’s worth noting that there has been strong support from the AICPA to delay the implementation date at least one year, meaning that private business entities with a calendar year-end would not have to adopt the new standard until 2021, though any potential delays are still pending. The FASB discussed this delay in their July 17, 2019 board meeting, with an exposure draft being released on August 15, 2019. Exposure drafts have a comment period of 30 days, which ended September 16, 2019; therefore we are currently awaiting the results of that comment period.
Well-crafted and legally-binding buy-sell agreements can reduce the risk of unexpected circumstances for construction companies.
Construction is a competitive industry! In today’s business world, contractors aren’t just competing for projects; they’re also competing for a dwindling supply of new management talent and other skilled workers. Salary, bonuses, incentives, and other fringe benefits options may get individuals in the door, but the problem remains: How to retain your talented employees as they move up the ranks?
The deduction is allowed for tax years beginning after December 31, 2017 and before January 1, 2026. This pass-through deduction is for sole proprietorships, S corporation, and partnerships; C corporations are not eligible.
I am Lee Ann Collins, Managing Partner at Lane Gorman Trubitt, and recently I found myself awake instead of peacefully sleeping. The Notre Dame Cathedral in Paris, France was burning, and I watched the news feeds while praying with the rest of the world. The amazing emergency service teams in Paris were able to put out the fire, saving many lives and the rose window. It had me thinking about how buildings and monuments like the cathedral are a mark of those that came before us. They take a community of people to build and maintain. Long after the architect, builder, and owner are gone, the testament to their vision and dedication remains.
Over the last six months our Construction Industry team here at Lane Gorman Trubitt has been working on producing an informative video series covering the new revenue recognition guidance and how it will impact how contractors consider and account for revenue on its contracts with customers. During that time we have fielded questions about this topic and its impact on the construction industry. Here are the some of the most frequently asked questions.
No part of the country is immune from disaster. Whether your construction company operates near water or in a desert, in the city or the suburbs, a natural calamity could stop you in your tracks and even put you out of business. For this reason, it’s a good idea for every contractor to at least consider business interruption insurance.