R&W Editor No Comments

Lowering the Bar on Performance and Payment Bonding

Acquiring or increasing your firm’s bonding capacity can open a whole new market of jobs. It can allow you to take on a multitude of public works projects or larger, more profitable, higher-profile private jobs that require a more hearty bonding capacity than what you, or your agent, are used to.

The traditional method of laying out up to 20% of the bond value in cash collateral may be uncalled for if you approach your agent in the right way with the following cash-saving opportunities.

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R&W Editor No Comments

Crunching Numbers for Multiple Corporations

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.

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R&W Editor No Comments

Use Financial Statements to Make a Solid First Impression

Financial statements are a must-have for any organization. The balance sheet reveals how much its assets and liabilities are worth based on historic costs. The income statement tells investors and lenders how profitably and efficiently the company has performed during the accounting period. The statement of cash flows details sources and uses of cash from operating, investing and financing activities. All this is relevant information for company insiders, as well as for lenders, bonding companies and other stakeholders.

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R&W Editor No Comments

Take Control of Your Firm’s Debt

Creating a formal debt management plan, rather than borrowing haphazardly, can save your firm thousands or even tens of thousands of dollars in interest.

Following certain best practices and using a structured approach to your company’s debt plan is part of an effective construction finance, accounting and tax strategy. First, create a table that lists all current debt, including working capital lines of credit, loans of any kind, any interest bearing notes or other financial obligations. Don’t include Accounts Payable.

Here is an example

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Joseph Heneghan No Comments

10 Tax Elections to Save Money on Your 2019 Return

2020 is a presidential election year. You’ll have an opportunity to cast a vote for your favored presidential candidate in November, but you can make several other key “elections” this year when filing your 2019 tax return. These elections may be influenced by the Tax Cuts and Jobs Act (TCJA), as well as the year-end spending package that was signed late last year. 

Here are ten important choices that individuals and small business owners can make this tax season.

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Joseph Heneghan No Comments

Four Ways to Keep Cash Flow High During Busy Season

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.

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Joseph Heneghan No Comments

Joint Ventures – How They Can Open Doors

Joint ventures are common in the construction industry, especially with large long-term projects. These collaborative arrangements allow construction firms to work together, for a limited time period, on one or more construction projects.

The upsides include pooling of expertise and resources, broader geographic reach, reduced risk, and enhanced financing and bonding capacity. But joint ventures also have potential pitfalls, so they need to be set up and managed with care.

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Joseph Heneghan No Comments

Foreign Tax Credit: High Tax Kick-Out

By Bethany Banks, CPA

There can be considerable confusion amongst taxpayers who face foreign taxes as to what is creditable and how to allocate, calculate, and carryforward/carry back. There can still be surprises for those who feel they have a good grasp on the basics. One of the areas that can take a taxpayer by surprise is handling foreign tax credit for high taxed income.

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Joseph Heneghan No Comments

Age Has It’s Privileges and Penalties

Did you, or someone in your family, have a birthday recently? Reaching certain ages can result in the need to make some tax and financial moves. Miss certain deadlines and you might lose out on valuable tax breaks. Take a look at some age-related milestones and why they may be important to you and your family members.

In an era filled with uncertainty, you can count on one thing: time marches on. Here are some important age-related financial and tax milestones to keep in mind for you and your loved ones: Read more