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Reasons for Construction Companies to Certify Financial Statements

Posted by Concannon Miller on Thu, Feb 28, 2019

Throughout the year, construction companies and real estate developers need to be able to provide verified financial results to others.

This may be your CPA, a lender or investor, a potential purchaser of your business — should you decide to sell — or another interested party. Not to mention that you, as the construction company owner should know your books are being done with accuracy and completeness.

For all of these reasons, you should consider having your CPA prepare certified financial statements for your business, rather than always relying on internally generated reports.

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Topics: Construction & Real Estate Development

Tax Reform & More: 5 Construction & Real Estate Predictions for 2019

Posted by Concannon Miller on Tue, Feb 5, 2019

Marked by turbulent trade conditions, a shifting retail landscape, continued fallout over tax reform and the accelerated growth of coworking companies, 2018 has been an eventful year for the real estate and construction industries.

As we enter 2019, a variety of forces are at play. The IRS will continue to release additional guidance on provisions introduced via tax reform, the future of U.S. trade policy is uncertain and interest rates will likely rise again.

As the new year unfolds, we’ve outlined our top five predictions for 2019.

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Topics: Construction & Real Estate Development

Construction Companies: How to Avoid IRS Problems from Using Independent Contractors

Posted by Concannon Miller on Thu, Dec 13, 2018

Chances are, your construction business hires subcontractors, rather than employees, to perform some of the work. These arrangements obviously save your company a lot of time, money and headaches. Take a look at some of the recordkeeping and financial differences:

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Topics: Construction & Real Estate Development

Construction Accounting: How to Determine the Best Method

Posted by Concannon Miller on Tue, Nov 13, 2018

As you may know, contractors have multiple accounting methods to choose from. But some are off-limits to certain contractors. As your construction company endures the ups and downs of a bumpy industry, it's worth your while to review your options.

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Topics: Construction & Real Estate Development

Multiple Tax Entities: The Pros and Cons for Construction

Posted by Concannon Miller on Thu, Oct 18, 2018

It might be advantageous from a tax standpoint to run a business through multiple entities. For example, a construction company might form a separate company to own and lease its trucks and equipment back to its related entities. Or a corporation might transfer appreciated property to an affiliated corporation in order to limit risk in case it is sued.

However, the IRS may look twice at an operation if it includes multiple business entities -- especially if recordkeeping and filing requirements aren't handled properly. One construction firm in Georgia discovered that lesson the hard way when it took deductions that actually belonged to one of its corporate affiliates.

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Topics: Construction & Real Estate Development

Thinking of Buying Another Construction Firm? What to Consider

Posted by Concannon Miller on Thu, Sep 20, 2018

Buying another construction firm can be an attractive way to grow your company's revenue base. A merger or an acquisition can allow you to: 

  • Add a new subcontracting specialty,
  • Acquire an experienced labor force to reach new markets, and
  • Deepen your penetration into the market your firm already serves.
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Topics: Business Valuation, Construction & Real Estate Development

Tax Reform Expands Simpler Accounting Method for More Small Businesses

Posted by Concannon Miller on Thu, Sep 6, 2018

Thanks to changes included in the Tax Cuts and Jobs Act, many more businesses can now use the simpler and more-flexible cash method of accounting for federal income tax purposes. The new law also includes some other tax accounting changes that are good news for small businesses. Like many TCJA changes that apply to businesses, these provisions are permanent. Here's what you need to know.

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Topics: Construction & Real Estate Development, 2017 Federal Tax Reform

New Guidance on Taking Advantage of Expanded Bonus Depreciation

Posted by Concannon Miller on Tue, Aug 21, 2018

Federal tax reform through the Tax Cuts and Jobs Act significantly expands bonus depreciation under Section 168(k) of the Internal Revenue Code for both regular tax and alternative minimum tax purposes. Now, the IRS has released proposed regulations that clarify the requirements that businesses must satisfy to claim bonus depreciation deductions.

Although the regs are only proposed at this point, the IRS will allow taxpayers to rely on them for property placed in service after September 27, 2017, for tax years ending on or after September 28, 2017.

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Topics: McDonald's management, Business tax planning, Manufacturing, Construction & Real Estate Development, 2017 Federal Tax Reform

Construction Companies: Work with an Industry Specialist for Most Savings (Video)

Posted by Andy Kahn on Thu, Jul 19, 2018

The tax laws and accounting policies for construction and real estate development companies are unique and particular. If your accountant doesn’t have the industry experience, you’re likely missing out on some significant tax savings.

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Topics: Construction & Real Estate Development

Construction Companies: Tips to Keep Cash Flow High During Busy Season

Posted by Concannon Miller on Thu, Jun 21, 2018

Everyone struggles to keep up when business really takes off. Projects come all at once. You may hire additional field workers to meet the demand. Payroll is stretched because payments which come in on your new projects lag months behind the large sums you lay out weekly to pay your workers.

This type of project financing concern is not yours alone. All construction contractors face this type of project financing snafu to some degree. The basic problem is your firm gets paid months after you need the money to run your projects.

There is something you can do to counteract the project financing snafu. The following are four great ways your firm can keep your bank balances high during busy season.

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Topics: Construction & Real Estate Development

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