Real Estate & Construction Accounting Blog

This spring, companies who sponsor 401(k) plans can expect their inbox to be full of new information.  The Department of Labor’s plan fee disclosure rules are set to take effect April 1, 2012.  Service providers of 401(k) plans will then be required to provide employers with figures for the direct and indirect compensation they receive to service plans.  They will now need to disclose recordkeeping fees separately from all other fee disclosures. They also must detail indirect compensation, such...

This year, thousands of Americans will have the option to receive their tax refunds in the form of a prepaid card, instead of the standard paper check. The government announced that they will use these prepaid cards as a means to cut costs and give those without a bank account an easier way to get and use their tax return money. The option is available for 600,000 taxpayers whose annual income is under $35,000, and has been estimated to potentially save the government millions of dollars per...

The return of summer brings hot weather, blockbuster movies and orange construction barrels as road construction begins. This year’s construction season is shaping up to be a little different, however. 

Recently news broke that will affect heavy highway and asphalt paving contractors.  A shortage of paint used to stripe the roads will cause delays in finishing jobs for 2-6 months.  The shortage of 2 ingredients used to give the paint its reflectivity and color are the biggest causes of the...

Home-Buyer Tax Credit Seekers May be in for a Long Wait

If you’re one of the many people who are planning to or already took advantage of the home-buyer tax credit, you may be in for a long wait to actually receive your refund. Why is this?

According to this article by MarketWatch, the main reason is fraud. The article states that the IRS handed out $620 million to ineligible filers. The result? Every request for the credit is now being audited leading to long delays for those claiming the...

Starting September 8, federal contracts awarded and solicitations with a period of performance longer than 120 days and a value above $100,000 must include a clause requiring federal contractors to use E-Verify, the federal government’s Internet-based electronic verification system. The same clause will also be required in subcontracts over $3,000 for services or construction that flow from those prime contracts.

These contractors and subcontractors must confirm that all new hires and existing...

One unique service we offer to clients is the ability to compare our client to their industry benchmarks.  Our external benchmarking tools are tailored to our clients and their specific industries.  We can generate benchmarks based on revenue size, geographic region, North American Industry Classification System (NAICS) codes, and also both public and private companies.  The service compares a number of financial metrics, and provides explanations and guidance as to variances your company has...

Contractors can learn a lot about their own jobs and business by doing a gain/fade analysis.  A gain/fade analysis compares gross profit margins at the completion of a job to estimated gross profit margins at an interim period of time (like December 31, 2008).  For example, an individual job has a gain if the gross profit margin upon completion in March 2009 was 10% and the estimated gross profit margin at the time of the financial statements (December 31, 2008) was 5%.  Since profits...