Category: Construction

The Tax Cuts and Jobs Act (TCJA) changed some important aspects of the tax law for construction contractors regarding the accounting for long-term contracts.  Any contract that is started in one year and ends in another is considered a long-term contract. Long-term contract...

Protecting your company through the purchase of various forms of insurance is a risk-management necessity. But just because you must buy coverage doesn’t mean you can’t manage the cost of doing so.  Obviously, the safer your workplace, the less likely you’ll incur cos...

When a business is launched, its owners typically welcome every customer through the door with a sigh of relief. But after the company has established itself, those same owners might start looking at their buying constituency a little more critically.  If your business has ...

Percentage of completion is the long-term construction contract method that is the most common and generally the best understood of all methods for recording construction contracts....

Is your sales process getting off-balance? Sometimes it can be hard to tell. Fluctuations in the economy, changes in customer interest and dips in demand may cause slowdowns that are beyond your control. But if the numbers keep dropping and you’re not sure why, you may nee...

You’ve no doubt heard the old business cliché “cash is king.” And it’s true: A company in a strong cash position stands a much better chance of obtaining the financing it needs, attracting outside investors or simply executing its own strategic plans.  One way to e...

Like many business owners, you probably created a business plan when you launched your company. But, as is also often the case, you may not have looked at it much since then. Now that fall has arrived and year end is coming soon, why not dig it out? Reviewing and revising a ...

Is your construction company ready for the new Revenue Recognition changes coming? Hopefully you have heard something in the last few years regarding the changes coming for revenue recognition.  If not, we’ve got you covered. Construction Contractors may be the industry ...

If you are looking for a way to kill a few hours to figure out if you owe the IRS just a few bucks, then lookback is for you....

The completed contract method is simple since you don’t have to recognize any profit until the contract is actually complete.  There are some important details, but basically you get to wait until the contract is done before you pick up the income or loss....

The cash method of accounting is one of the two main methods that businesses can use.  The cash method can be used by some construction contractors....

Construction contracts are a tricky animal.  There are so many ways to account for them for book and tax purposes and those methods are a bit more complicated than just cash and accrual....