Contractors drive an average of 75 miles every day, according to a recent study by The Aberdeen Group. Those miles equate to more than $10,000 in tax write-offs each year However, the vast majority of miles go unreported and dollars are never claimed due to lack of awareness or failure to use tracking technology.
The explosion of e-discovery in litigation and arbitration unpleasantly introduced many companies to the concept of spoliation of evidence and the need to preserve documents once litigation is pending or even reasonably anticipated. At first, the “adverse inference instruction” penalty (i.e., a judge informs the jury that someone concealed evidence or information, or spoiled evidence so it could not be brought to court) did not seem too severe. The greater concern was for dismissal of claims or defenses, a sanction thought to be so severe that no judge would order it except in the most egregious of circumstances.
Gone are the days of filing cabinets lining the walls for a single construction project. With the digitization of documents and use of multiple computer programs, the manual process has been simplified to hard drives—and maybe a few files for record keeping.
In every industry, technological advancements are helping companies to be more efficient and save money. Construction is no exception. According to the 2016 report on the results of a global PwC survey, Industry 4.0: Building the Digital Enterprise, respondents anticipate a return on their investment in technology over the next five years. Participants in all industry sectors expect to realize a 2.9 percent increase per annum in revenue. Engineering and construction companies anticipate a revenue gain of 2.7 percent per annum. On average, companies across all sectors expect to reduce costs by 3.6 percent annually.
A successful contractor does everything possible to run a lean, financially sound company. Finding ways to save money while increasing margins, improving cash flow and operating more efficiently is key. Following are 12 financial strategies contractors can implement to stay financially healthy.
Construction input prices remained unchanged in May, ending five consecutive months of price expansion, according to analysis of Bureau of Labor Statistics data released by Associated Builders and Contractors (ABC). Construction input prices expanded 3.4 percent on a year-over-year basis.
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.