Insights: Construction
Sales Tax From A Contractor’s Perspective
By: Chad Newell, CPA As a construction contractor, understanding the rules associated with consumer sales tax on real property in West Virginia is crucial for your business. Sales tax in the state can have a significant impact on both the pricing of projects and the overall financial planning for new construction or renovation work. West…
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Using Per Diem for Your Employees
By: Chris Lambert, CPA, CGMA, CCIFP You may have heard of other contractors offering Per Diems – or you may get asked by your employees if you offer Per Diems. They are an easy way to reimburse employees for costs incurred with business travel, but what exactly is a Per Diem? Per diem derives from…
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Pass-Through Entity Tax-What Does It Mean For Me?
By: Trey Suttle, CPA The Tax Cuts and Jobs Act of 2017 (“TCJA”) made a major change to the amount of state and local taxes paid that could be deducted on an individual’s income tax return. Prior to the legislation, there was no cap on the amount of state and local taxes paid that could…
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Managing Inventory during a Supply Chain Shortage
By: Anthony Cornell, CPA Construction inventory management involves overseeing the materials, equipment, and supplies required for a construction project and is crucial for businesses to ensure smooth operations and prevent disruptions. Effectively managing inventory during a supply chain shortage requires strategic planning, proactive measures, and flexibility. Supply chain shortages can have significant impacts on businesses,…
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Guide to Job Costing for Construction Contractors
By: Sarah Murphy As a construction contractor, mastering the art of job costing is essential for the success and profitability of your projects. Accurate job costing allows you to understand the proper expenses associated with each project, make informed decisions, and optimize resource allocation. Below are three crucial aspects of job costing: committed costs, work-in-progress…
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Purchasing Construction Equipment with Cash or Financing: What is the Impact on Your Financial Statements and Tax Returns?
By: Danny Shobe, CPA, CCIFP Having the right equipment to do a job can be highly critical to the success of a construction company. Deciding whether to purchase or rent the necessary equipment is a significant decision all construction company management teams and owners face each year. Once one chooses to purchase equipment, the next…
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Avoid succession drama with a buy-sell agreement
Recently, the critically acclaimed television show “Succession” aired its final episode. If the series accomplished anything, it was depicting the chaos and uncertainty that can take place if a long-time business owner fails to establish a clearly written and communicated succession plan. While there are many aspects to succession planning, one way to put some clear…
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Four Construction WIP Errors to Avoid
Written by: Kristin Moody, CPA, CFE An accurate Work-In-Process (WIP) schedule is essential for contractors to effectively manage projects, make informed decisions, maintain financial stability, and meet contractual obligations. It provides a comprehensive view of project performance and enables better control over costs, revenues, and overall financial health. Because it is a crucial tool for…
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If you’re hiring independent contractors, make sure they’re properly handled
Many businesses use independent contractors to help keep their costs down — especially in these times of staff shortages and inflationary pressures. If you’re among them, be careful that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be an expensive mistake. The question of whether…
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Use the tax code to make business losses less painful
Whether you’re operating a new company or an established business, losses can happen. The federal tax code may help soften the blow by allowing businesses to apply losses to offset taxable income in future years, subject to certain limitations. Qualifying for a deduction The net operating loss (NOL) deduction addresses the tax inequities that can…
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