Tax Planning for 2021: What Can Construction Firms Do?
In this environment of increased uncertainty, tax planning is not only possible, it is a critical step in preparing for 2021.
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 and outside credit-extending companies will view their financial statements under the new standard.
Keeping the ‘Lion’s Share’: The Appeal of Defined-Benefit Retirement Plans
Qualified retirement plans are an excellent way to grow tax-deferred money for retirement and to protect assets from unjust lawsuits. In addition, contributions to qualified retirement plans generate tax deductions.
Tax Questions Every Contractor Should Consider Entering 2021
At the start of 2021, contractors should consider the following questions to determine if they have taken advantage of all available tax elections.
The Lease Accounting Fallout From COVID-19
Many contractors were relieved that due to COVID-19, the FASB issued an ASU on June 3 that granted a one-year effective date delay for applying the lease accounting and revenue recognition standards.
Working Capital: It’s Not Just Math
For a user of a contractor’s financial statement, such as a surety and a professional surety agent, working capital is a great indicator of a contractor’s immediate financial prowess.
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.
The Importance of Data Analytics in Finance
With improved financial management through analytics, construction companies will be positioned to survive the economic downturn and seize opportunities for expansion.
