Keeping Uncle Sam at Bay
Thanks to a variety of industry quirks, construction companies are especially vulnerable to IRS audits. But there are four ways to avoid some common audit triggers: using the accrual method of accounting, correctly classifying workers as employees or independent contractors, timely paying taxes on long-term contracts, and operating as an S corporation. There are also steps that those already contemplating an audit can take. Full article…
Sales & Use Tax can Snare the Unaware
With states searching for extra revenue to plug their growing budget gaps, many are enforcing their sales and use tax rules more strictly than ever. So it’s critical for contractors who cross state lines to get and stay up-to-date on sales and use taxes to avoid getting tangled in the web so often spun by out-of-state jobs. Full article…
For Contractors Seeking Credit, Preparation is Key
Although the financing market remains tight, it’s still possible to prevail in a search for credit. By building their case beforehand and knowing all of the available options, contractors will have a better shot at getting the dollars they need. This article shows how to choose the right lender and how to analyze projected balance sheets and projected future earnings in advance of visiting the lender. It also looks at alternatives for those shut out of traditional lending altogether. Full article…
Staying Focused in the Fight Against Profit Fade
It’s common for a project to start out strong, but then encounter delays and incidental added work and changes that hurt the bottom line. There’s a name for these situations: “profit fade.” There are also a variety of ways to stay focused in the fight against this continuing problem. They include knowing the contract and budget; staying on top of changes; and making sure the assumptions used in estimating the projects are valid. Full article…
