As contractors continue to work back toward normalcy, it’s critical to learn from recent experience and apply those lessons to put a plan in place for the future.
Crisis Preparation: Have a Plan in Place for the Future
Tag: contractor
The Nuts and Bolts of the New Revenue Recognition Standards: An Overview for Contractors
New revenue recognition standards for contractors seem pretty simple until you start thinking about some of the complexities inherent in construction contracts. Let’s take a look at a couple of key concepts.
Understanding the Job Schedule: Accounting for Contract Costs
Errors in allocating contract costs on the job schedule can produce some unpleasant surprises. Sometimes when financial statements are audited according to U.S. generally accepted accounting principles (GAAP), a project that seemed to be profitable can suddenly turn into a loss. In many instances, this is due to the discovery of job-related costs that were not properly allocated to the project.
Understanding the Job Schedule: Realistic Estimates are Essential
The job schedule can help you do a better job of analyzing and improving your company’s performance, but it is essential that the cost estimates on the schedule be as realistic and accurate as possible.
Understanding the Basics of the Job Schedule: Work in Progress
If your company needs to submit financial statements for bonding, you typically are required to submit a job schedule, which includes a list of all jobs open at the end of the reporting period, along with a list of jobs closed during the period.
Big Changes for Pass-Through Entities
One of the most talked-about and Jobs Act is the 20 percent deduction on pass-through income from sole proprietorships, partnerships, S corporations, and LLCs. Because so many construction-related businesses are organized as pass-through entities, many contractors have greeted this provision with understandable enthusiasm.