Placing a High Value on a Construction Business Valuation

If you own or co-own a construction business, it’s likely your most valuable asset. But the question is, just how valuable is it? This is something you’ll need to contemplate regularly throughout your tenure because the answer will change. The value of any company rises and falls depending on various factors, such as the state…

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Ensure Your Construction Accounting System Has the Right Features

Construction accounting is distinctively complex. Unlike other businesses that rely heavily on a general ledger to track finances, construction companies need to master a project-based approach to accounting. After all, each of your jobs serves as an individual profit center — with its own scope, timeline, payroll, revenue and expenses. That’s why your accounting software…

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Federal Tax News for Individuals

1. If You Make Estimated Tax Payments, a Deadline Is Coming Up If you pay quarterly estimated taxes, circle this date on your calendar: June 15. That’s the payment due date for your second-quarter estimated taxes. Individuals, including sole proprietors, partners and S corporation shareholders, must make estimated tax payments if they expect to owe…

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Tax-Saving Fundamentals for Construction Companies

By the time you read this, you might have already filed your construction business’s federal tax return for the 2021 tax year. Or maybe you’ve requested an extension while you pull together more documentation. Whatever the case may be, now’s a good time to identify some tax-saving fundamentals while the topic of taxes is fresh…

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Are You Staying Ahead of Your Construction Company’s Backlog?

When projects stalled across the country during the initial weeks of the pandemic — some indefinitely because of lost funding — the construction industry became increasingly aware of backlog. That’s not to say tracking and managing backlog was an obscure topic before the public health crisis, but the impact of the sudden economic shutdown of…

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Congress Eyes Further Retirement Savings Enhancements

In 2019, the bipartisan Setting Every Community Up for Retirement Enhancement Act (SECURE Act) — the first significant legislation related to retirement savings since 2006 — became law. Now Congress appears ready to build on that law to further increase Americans’ retirement security. The U.S. House of Representatives passed the Securing a Strong Retirement Act…

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Reducing Your Construction Company’s Workers’ Comp Costs

Workers’ compensation insurance represents a major expense for construction companies. It might seem like there’s not much you can do to avoid high premiums. However, there are steps you can take to reduce or at least better control workers’ comp costs. Ensure accurate employee classification Insurers assign risk classification codes to employees based on their…

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3 Numbers to Know: Costs, Markup and Profit

Running a successful construction company calls for more than just winning bids and doing great work. To get ahead and make money, you need to carefully track your costs and accurately calculate how much to charge to turn a profit. To this end, there are three numbers that every construction business owner should know, review…

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Don’t Let Profit Fade Dim Your Hopes For a Good Year

A gradual decline in expected gross profits over the course of a project is known as “profit fade.” It not only undermines the financial performance of construction companies, but also may raise red flags with sureties and lenders. For these reasons, contractors face an operational imperative to recognize why profit fade happens and know what…

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Entrepreneurs and Taxes: How Expenses Are Claimed on Tax Returns

While some businesses have closed since the start of the COVID-19 crisis, many new ventures have launched. Entrepreneurs have cited a number of reasons why they decided to start a business in the midst of a pandemic. For example, they had more time, wanted to take advantage of new opportunities or they needed money due…

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