Q. What issues should you, as a closely held business owner, be most concerned
about?
A. There are many emerging issues, which you should be aware of that may
impact the financial well being of your business. These issues are a result of
recent continuous changes in tax law and the economy.

Our CPA firm can help you...

• IDENTIFY THESE EMERGING ISSUES AND THEIR EFFECT ON THE CONSTRUCTION INDUSTRY.

In today’s competitive marketplace, you need to be one step ahead of your competition by taking advantage of various business and tax saving opportunities. Recent changes in both state and federal tax regulations make it extremely difficult for you to assess your own personal financial situation as well as that of your business. As a firm of experienced CPAs and business advisors, we are able to help you formulate practical solutions for today’s emerging issues.

• TAKE A CLOSER LOOK AT EMERGING ISSUES AFFECTING CONTRACTORS:

Impact of bonding companies
As more and more contracts are required to be bonded, the role that the surety plays in the contracting industry is critical. Bonding companies require increasing amounts of information from the contractor and look for professionally managed organizations. The accuracy, reliability, and timeliness of the information and the organization of your company are critical to your relationship with the surety, your lending institution, and to the viability of your business.

Long-term accounting changes
The Tax Reform Act of 1986, the Revenue Act of 1987, and the Technical and Miscellaneous Revenue Act of 1988 have made substantial changes in the methods used to report long-term contracts, revenues and costs. Consideration must be given to multiple issues including selecting an appropriate accounting method allowed by tax law (cash, accrual, percentage of completion-capitalized cost method) and evaluating the effects of the alternative minimum tax and S corporate status.

Strategic planning
Increased competition and changes in the contractors’ marketplace requires forward-looking management in order to operate profitably. Effective strategic planning accounts for factors such as complexity of projects, technology, relationships with third parties, the political environment, monetary policies and tax policies. Planning helps the contractor to maintain growth, improve profitability and hedge the up and down swing of the construction cycle.

By providing other services needed by contractors:

 • Financing and bond assistance
• Job costing systems
• Budgeting
• Cash flow management
• Site auditing
• Computer hardware and software selection/training
• Owner succession planning
• Employee benefit plans
• Buy/sell agreements
• Lease/buy considerations
• Regulatory and licensing reporting
• Business valuations
• Mergers and acquisitions
• Inventory control systems
• Equipment management and control
• Litigation support
• Contract review
• Cost studies
• Financial forecasting
• Downsizing

 We can also assist you in the following areas:

• Estate freezes
• Corporate estimated taxes
• Tax credits
• Uniform capitalization rules
• Installment sales
• Section 89 nondiscrimination rules
• Retirement planning
• Employee stock ownership plans
• Management/corporate structure
• Tax planning and return preparation
• IRS representation

Our experience is invaluable.

We can help you stay ahead of your competition by identifying the emerging issues affecting
contractors and helping you formulate your plan of action. Complex tax laws and legislation,
coupled with today’s competitive economic environment, make more detailed planning a
necessity.

Our experience with tax, business and financial consulting for the construction industry
enables us to help you cope with today’s emerging issues. We pride ourselves on providing
the personalized service you deserve and look forward to being of service to you.
Give us a call; we will be glad to discuss how we can work together to cope with the
construction industry’s emerging issues.