Financial Reporting Under ASU 842
This standard will have an impact on how entities report certain types of leases on their financial statements.
FAR Goes Beyond the A/E Firm to Affect Contractors
Contractors that understand the complexities of working with government entities can have profitable opportunities. The key identifying allowable and unallowable
Understanding the Eichleay Formula: Recovering Compensation From Project Delays
If a construction project is delayed by the actions of the project owner or another contractor, the delayed contractor has the right to request compensation for
Optimize the Balance Sheet to Find Hidden Equity
Scrutinize accounts more fully to ensure the amounts are recorded properly and maximize the equity of your company.
Significant Impacts of Revenue Recognition Under New Topic 606
Understanding the new revenue recognition standard is essential to determine how it will impact contractors' financial statements.
New Lease Accounting Standard: Deferred But Not Forgotten
Although the new lease standard implementation has been deferred, contractors must review current and future lease agreements to proactively position and prepare
Pandemic Relief Programs for Contractors
The federal government has put numerous programs in place to help entities get through these troubling times. It’s important to understand what programs are available
How to Maximize the Power of Surety Credit
To maximize surety credit, prepare in advance for bond underwriting by looking at year-end financial statements and try to reduce items with a negative impact on
Get Direct About Indirect Costs in Construction
Understanding a contractor’s true cost, including direct and—just as important—indirect costs, is imperative for success.
Get Ready for the New Lease Standard
ASU 842 was set to take effect for December 2020 year-ends, but was deferred due to the pandemic. Contractors should take the extra time to understand how management
Cash Is Still King: The Importance of Projecting Cash Flow
Implementing these financial practices can mitigate potential cash flow setbacks on a project, while increasing profitability and longevity.
Understanding the Impacts of Implementing Topic 606
Understanding the ramifications of Topic 606 and the differences between the varying financial reporting and tax rules is imperative.
Breaking Down the Work-in-Process Schedule
An in-depth and clear understanding of the WIP components is an essential tool to ensure any potential detriments are addressed immediately, thereby reducing any
Topic 606: A Retrospective Review of Revenue From Contracts With Customers
The most significant impact of Topic 606 on construction contractors’ financial statements relates to the presentation of contract assets and contract liabilities,
Deconstructing the Income Statement
Historical data is used to analyze a contractor’s business when determining lines of credit, loans and surety bonds—or even when deciding whether to allow a
Maximizing the Amount Firms Can Bill: The Influence of FAR in Setting Project Pricing
For private sector projects, firms are awarded contracts based on project scope, proposed pricing and firm qualifications. In the public sector, however, firms are
Addressing Cash Flow and Credit Impacts Related to COVID-19
Financial planning and projections will ensure a contractor’s compliance with banking requirements, maximize surety credit, as well as ensure growth and stability
Comprehending and Maximizing Surety Credit
Surety credit is an essential component of the viability of many contractors. Planning for how the contractor’s financial statements will look prior to year-end
Technology—The Future of the Construction Industry
While technology streamlines construction, workers must hone their skills and learn new technologies to be competitive in a labor market influenced by software,
Successful Projects Require Collaboration Between the Field and Office
The relationship between project managers and the financial team must be based on collaboration and understanding of each other’s roles. This system of checks
Considerations When Balancing Strong Financial Statements and Tax Savings
Often, the primary focus for year-end is the tax liability based on the company’s annual earnings. However, sometimes the requirements for financial reporting