Skip to content

Construction & Real Estate

Simpler Accounting Option Now Available for Leasing Entities

Last year, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-07, Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements. This guidance offers private companies a simpler way to account for certain related leasing entities. Construction businesses that adopt the alternative can avoid the potentially costly variable interest entity (VIE)…

Read More

Is Your Tool Reimbursement Plan Accountable?

If you permit or require employees to purchase their own small tools and then reimburse them for the expense, and the arrangement qualifies as an “accountable plan” under IRS rules, you — and your employees — can gain valuable tax benefits.

Read More

Check Your Company’s Financial Pulse with a WIP Report

After a project is completed, it’s useful to perform a “postmortem” to not only analyze what went right and what went wrong, but also apply what you learned to improving performance on future projects. But what about current jobs? Using work-in-process (WIP) reports, you can monitor vital signs while jobs are in progress and then,…

Read More

Why You Should Consider Performance-Based Bonuses

To ensure the continued success of your construction business, it’s imperative to keep your employees motivated. One way to accomplish that is to offer performance-based bonuses. But, be forewarned: developing an effective performance-based plan can be a challenge.

Read More

New Accounting Standard May Affect Your Revenue Recognition

Recently, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued a new, converged revenue recognition standard, concluding a multiyear effort to develop uniform, worldwide guidelines. By replacing industry-specific rules, the new standard strives to eliminate inconsistencies and improve financial statement comparability.

Read More