Reading Time: 3 minutes If you are in the “construction world” you have probably heard about “change orders.” Change orders authorize contractors to receive compensation for performing additional work due to unforeseen issues on projects or changes in scope directed by the customer. Almost all construction contractors have to deal with change orders at some point in their normal.
Reading Time: < 1 minute Although things are slowly getting back on track, construction companies still face serious challenges. Some have taken on heavy debts. What should they do? Restructure debt or file for bankruptcy?
Reading Time: 3 minutes Financial statements show not only where a construction company is financially, but also where it’s going. Contractors who work with their financial advisors to analyze their statements can often catch problems early on — before they turn into bigger issues. This article lists eight red flags contractors should look out for when reading their next statement, including declining equipment value, significant liability changes, and an increasing ratio of general and administrative expenses to profits.
Reading Time: < 1 minute If you have been in the construction business awhile, you’re likely familiar with most of the key words on your financial statement.Nonetheless, it does not hurt to review these terms and think about how they currently apply to your company. Here’s a handy financial statement glossary.
Reading Time: < 1 minute The following checklists come from the actual Audit Techniques Guide that the IRS uses to examine construction companies. Once you know what the IRS is digging for, you can shore up weak spots and improve your documentation. Talk with your tax adviser for more information.