Accounting & Finance

Construction Accounting & Finance

Effectively managing the accounting and finacial function of your construction company is critical to gain a successful, profitable business. Our articles from industry experts provide information on a range of subjects in construction accounting including: applying the percentage-of-completion method or completed contract method, job costing, improving cash flow and managing debt, reducing overhead, understanding financials, implementing tax strategies, performing audits, building equity and wealth, implementing a construction accounting program, using construction accounting software, and hiring a payroll provider.

Establish Your Labor Burden Rate for Your Construction Company

Written by Jack Ganley

Fewer industries have been as hard hit by the recent economic landscape as the construction field, and while the climate has started to shift in a more positive direction, the need to maximize profitability is more important than ever. Tight competition and subsequent tighter profit margins equals no allowance for costly mistakes; as such billing rates must be "right on the money."

Tags: 2010 June issue , accounting and finance

Roth IRA Conversion: Is It Right for Your Construction Business

Written by Adam Polakov

For tax years beginning in 2010, The Tax Increase Prevention and Reconciliation Act (TIPRA), signed into law by the Bush administration in May 2006, creates opportunities for higher-income taxpayers by eliminating the $100,000 adjusted gross income limitation on Roth IRA conversions.

Tags: 2010 May Issue , accounting and finance

Should I Use a Construction Payroll Provider for My Business?

Written by Fred Ode

I am an office manager for a growing construction contractor, and we are struggling to handle payroll in-house. The complexities of union setups and all of the governmental reporting are extremely time consuming. The worst part is that I don't feel confident we are in complete compliance with all of the tax jurisdictions in which we operate. The owner and I have recently been discussing outsourcing the payroll function. Is this something you would recommend, and, if so, what should we look for in a payroll provider?

- Kristen

Tags: 2010 May Issue , accounting and finance , Fred Ode

What Could the Tax Treatment of Losses Incurred by an LLC or LLP Mean for Your Construction Business?

Written by Adam Polakov

Tax Treatment of Losses Incurred by An LLC or LLP

There has been a long-running battle over the tax treatment of losses incurred by limited liability companies (LLCs) and limited liability partnerships (LLPs). Recently, the IRS lost a key battle in its fight to limit tax deductions that can be taken by investors in small businesses. The recent Tax Court decision, Garnett v. Commissioner, 132 T.C. No. 19 (2009) (Garnett), is a case that could have broad implications for entrepreneurs, investors and small business owners. The Tax Court decision may allow investors in most kinds of businesses to offset ordinary income with losses incurred in pass-through investments such as LLC and LLP interests.

Tags: 2010 March Issue , accounting and finance , financial