Services for Construction Companies:
- Financial Statement Audit
- Financial Statement Review
- Financial Statement Compilation
- Employee Benefit Plan Audits
- Prescribed Form Audits for State Governments
- JV audits
- Job Cost Audits
- Subcontractor Performance Audits
- Federal Tax Returns
- State Tax Returns
- Estate Planning
- Tax Planning & Strategic Planning
- Tax & Organizational Strategies
Construction & Related Companies
Construction companies appreciate the proactive service that Briggs & Veselka professionals provide in audit, tax, and consulting to address today’s regulatory and compliance issues, along with helping anticipate, rather than react to, changes in the landscape.
Current Construction Industry Accounting & Tax Issues and How We Can Assist
Federal Overtime Laws
The U.S. Department of Labor’s new regulations on overtime pay could have significant impact on construction companies. The increase in salary threshold from $26,660 to $50,440 per year means you may be liable for overtime pay for an entire new group of employees. Additionally, the highly compensated employee threshold has been raised, with impact on benefits and other benchmarks.
How to prepare: Briggs & Veselka has partnered with a major employment law firm to create a legal and financial risk assessment for middle market companies who are likely to be impacted by these new rules. Contact Adam Dimmick at for more details.
New Lease Accounting Regulations
These new accounting rules could have impact on bank loan covenants as they might change the borrowing base for many loans essential to many construction companies.
How to prepare: Briggs & Veselka is already working with clients to advise them on the possible implications of these new accounting regulations to help them prepare possible revisions to existing covenants and as guidance for future loan agreements. For more information, contact Adam Dimmick at email@example.com for more details.
New Accounting Standards for Revenue Recognition
Under the new FASB rules, which go into effect on December 15, 2016 for public companies and in 2017 for all construction companies, contracts must meet certain requirements before revenue can be recognized. Additionally, contract modifications and performance obligations fall under new scrutiny, and the incremental costs of obtaining a contract will be recognized as an asset, which could impact your balance sheet.
How to prepare: The Briggs & Veselka construction practice has prepared a confidential, no obligation checklist to allow management of construction companies better insight into the impact of these FASB rules, which could impact contracts being executed even before the regulations go into effect. Contact Adam Dimmick at firstname.lastname@example.org for more details.
The practice of recording accumulated earnings for closely held C corporations has come under greater scrutiny by the IRS. This is further complicated for construction companies who often must retain capital either for bonding purposes or for purchase of capital equipment.
How to prepare: Because of the vagueness of the IRS regulations, smart construction companies should have a consistent, well-documented approach to earnings that are withheld, in order to justify the approach in the event of an audit. Briggs & Veselka has benchmarked leading practices in this area and can share them with you upon request.
Contact Adam Dimmick at email@example.com for more details.
The recent $100 million payment by Uber to California drivers classified as employees vs. contractors has direct impact on the construction industry. State and federal regulators are placing higher scrutiny on companies who claim the use of subcontractors, which places construction companies square in the sights of regulators looking for employment tax revenue.
How to prepare: Briggs & Veselka has prepared an employment tax liability worksheet to help construction companies get ahead of the curve to document behavioral control, financial control, and relationships of parties—the primary triggers taxing authorities look for. Getting ahead of this issue can prevent costly tax claims by government entities, as well as back wages and benefits claims by those you considered subcontractors. Contact Jason Sanders at firstname.lastname@example.org for more details.
Recovery from Vendors
Oftentimes actual contract delivery and performance varies from the terms of a supplier contract, causing hidden losses for the construction company or in a joint vendor.
How to prepare: Briggs & Veselka professionals can perform audits of actual vs. contracted performance and, depending on the terms of the contract, find cash recoveries for the company. And we can proactively examine current contract structure from a performance standpoint to advise you on how to create opportunities for recovery in future contracts. For more information, contact Terry Sherrill at email@example.com
Financial Closing Issues
Project billing, month-end closings, and reports for lenders can place burdens on your existing finance and accounting staff. And with the uncertainly in Houston’s economy due to energy pricing, many construction companies are reticent to staff up.
How to prepare: Briggs & Veselka’s outsourced controller and accounting services gives you budget flexibility and control when you require interim support of full back office accounting functions. Contact Terry Sherrill at firstname.lastname@example.org for more details.