Construction projects involve a lot of moving parts. From start to finish, dozens of subcontractors, vehicles, tools and chemicals may be brought into the fold. Digital project management solutions make it easier to keep these components aligned. However, the different types of risks they introduce are often left unaccounted for.
Financial Statement Red Flags to Detect Internal Theft Construction Contractors Can Minimize Financial Damage by Recognizing Fraud
Businesses worldwide lose five percent of revenue each year due to occupational fraud committed by their very own employees, according to the Association of Certified Fraud Examiners’ Global Fraud Study for 2016. In 94.5 percent of fraud cases, perpetrators took some effort to hide the fraud by creating or altering physical documents.
A contracting business is a living, breathing organism that needs to be fed. If unhealthy, that organism will put tight constraints on a contractor’s ability not only to grow, but also to make payroll and fund projects. When nurtured properly, the business will flourish, minimizing stress in an inherently high-stress industry.
Bookkeeping Best Practices for a Smooth Tax Season Construction Contractors Must Maintain Accurate Books to Understand Financial Health
As a new year begins, many contractors want to look forward to the future of their business. However, it is important to first look backward to understand how the previous year financially impacted the company.
The new presidential administration is poised to lead to a number of proposed tax and regulatory changes, many of which will impact the construction industry.
Employers Face Expedited Deadline to Send W-2 Forms Construction Contractors Must Be Aware of New Tax Deadlines
Jan. 31, 2017, is the new deadline for employers to supply W-2 forms to workers and file copies of Form W-2 with the Social Security Administration (SSA) for the 2016 tax year. This is one month earlier for paper filers and two months earlier for electronic filers. It also applies to businesses filing Forms 1099-MISC that report payments exceeding $600 for the year to independent contractors or other service providers.
Every year, thousands of construction companies fail, regardless of how long it has been in business. The industry is fragile and the cause of failure can be something as minor as one bad project or customer experience. Research by the University of Tennessee found less than half (47 percent) of U.S. construction companies still operate four years after startup.
Tips for Reviewing Independent Contractor Agreements Ensure Classification Compliance as DOL Focuses on Construction Industry
Just as the Department of Labor (DOL) proposed major changes to the nation’s overtime rules in 2015 (taking effect Dec. 1, 2016), the DOL also doubled down on its “misclassification initiative.” By collaborating with several states through work-sharing agreements, the initiative is designed to promote information sharing and coordinated enforcement efforts against independent contractor misclassification.
With profit margins averaging around only 3.5 percent, construction companies can not afford to waste money. It is imperative that company owners plug any and all leaks in their financial systems, including any possibilities of fraudulent acts by employees or outsiders. Unfortunately, fraud has been widespread in the construction industry for a long time.
In recent years, the Department of Labor (DOL) has taken the position that due to a “particularly competitive” environment, pay practice violations are rampant throughout the construction industry. Previously, the DOL mostly cited issues related to “off-the-clock” work, travel time and poor recordkeeping.
In the construction industry, cash flow is an important part of keeping operations up and running effectively. With insufficient cash flow running in and out of the business, a construction firm may start to run into complications. When this occurs, the only solution for the company is to try and boost their cash flow. Following are the best kept strategies to boost cash flow in construction to help improve a firm’s overall success and operations.
Later this year, business owners will need to work through the twists and turns accompanying the Department of Labor’s (DOL) changes to the federal overtime regulations. The new rule will take effect Dec. 1 and applies to exempt employees. It also more than doubles the salary basis required to classify an employee as exempt.