As Congress shifts its attention from health care back to tax reform, many are hoping for legislators to pass a new tax reform bill by the year’s end. The White House, along with the House Committee on Ways and Means and the Senate Committee on Finance, recently released a tax reform plan: Unified Framework for Fixing Our Broken Tax Code. This framework plans to lower the corporate tax rate and bring down the tax rate for pass-throughs as well.
Equifax, one of the three largest consumer credit reporting and financial services providers in the nation, announced its data was breached on Sept. 7. The personal information of an estimated 143 million U.S. consumers (44 percent of the population) was stolen from May 13 to July 30. This includes full names, Social Security numbers, birth dates, addresses and, in some instances, driver’s license numbers.
Construction project planners know schedule details inside and out. They can look at a Gantt chart and easily see the relationship between tasks, the durations assigned and the resources committed. Unfortunately, few others in the construction process are interested in the symbols and graphs.
Construction labor remains one of the largest hurdles in conquering a construction project. It is always at the forefront of industry news and it’s a legal problem, too, with new overtime regulations coming into play. When dealing with construction claims, one of the largest components of any request for additional compensation is labor costs.
Distributors in building and construction supplies are well aware of the benefits automation can deliver. When it comes to the physical supply chain in particular, automation leads to improved fulfillment management, optimized processes and increased profits. However, the impact automation can have on the financial supply chain is often overlooked.
In the past, contractors relied on paper and a variety of methods to manage their accounting needs. The problem was the time and effort it took to consolidate the data and generate reports.
Business owners must collect, report and submit payroll taxes as required by federal and state laws. It is important that payroll systems and processes are accurate and efficient to meet federal and state obligations. Otherwise, a corporate officer or other responsible party (as defined by the IRS) may be personally liable for payroll taxes that are not reported or deposited, even if someone else processes payroll.
Use Mileage Tracking Apps to Save More at Tax Time Apps Can Help Construction Contractors Take Full Advantage of Mileage Deductions
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.