Category: Family-owned Business

Chances are, your construction business hires independent contractors, rather than employees, to perform some of the work. These arrangements obviously save your company a lot of time, money and headaches. Take a look at some of the recordkeeping and financial differences: With anEmployee: With an IndependentContractor: You must pay the employer’s half of FICA, as well as federal unemployment tax (FUTA). You generally don’t have to withhold taxes from the worker’s pay, you don’t owe the employer’s portion of FICA… Read more ›

Comprehensive financial statements prepared under U.S. Generally Accepted Accounting Principles (GAAP) include three reports: the balance sheet, income statement and statement of cash flows. Together these reports can be powerful diagnostic tools to help evaluate the financial well-being of a business. Moreover, by carefully analyzing them, you may be able to uncover potential money-management problems or even fraudulent activity. Balance Sheets Show Assets vs. Liabilities The balance sheet provides a snapshot of a company’s financial health at a moment in… Read more ›

It’s not uncommon for an incoming partner in a professional firm to take out a personal loan to finance all or part of the cost of acquiring an ownership interest. If some of your firm’s partners have done this, they need to know the proper federal income tax treatment of the resulting interest expense. Such partner-level interest expense is sometimes called “outside interest” because it comes from a personal loan that is outside of the partnership. IRS guidelines say outside… Read more ›

Quick References are high-level insights about critical issues and concerns facing your organization. Our outsourced accounting and advisory group is available to help you implement solutions. Click here to view other Quick References and to sign up for email alerts when future Quick References are released. What is the new lease standard? The new lease standard is intended to account for all lease obligations on financial statements, rather than excluding operating leases as has been the standard. This change ensures… Read more ›

Internal fraud drains more than $4.7 trillion annually from global businesses, according to an estimate by the Association of Certified Fraud Examiners (ACFE). The median loss from internal fraud at companies in the construction industry is $203,000, according to ACFE’s latest Report to the Nations. Construction experiences the fourth largest median losses of any industry (the median loss for all businesses is $117,000). Although companies can experience pilferage from customers, vendors and other sources, employees account for the highest losses,… Read more ›

Health Savings Accounts (HSAs) are a popular way to help finance the ever-increasing costs of medical care. They essentially work like this: Individuals and businesses buy less expensive health insurance policies with high deductibles. To qualify in 2022, participants must be enrolled in plans that require them to pay at least the first $1,400 of medical expenses, $2,800 for a family before the insurance begins to pick up the tab (unchanged from 2021). The high deductible health plan is then… Read more ›

“I’ll do your family’s dental work for free if you build a deck onto my house.” If you’re in the construction industry, you’ve probably received an offer like this or made a similar offer to someone else in a different line of business. It’s a modern variation of the age-old practice of barter. What makes it especially intriguing in this day and age is the idea that you can exchange services or products with someone without exchanging money. Keep in… Read more ›

Location, location, location. You know how important it is for your business. So when choosing a location, you probably research foot traffic, car traffic and the occupancy rates of the neighboring buildings. But if you don’t research zoning laws, all your good business judgment could go to waste. Before you sign a lease or buy a commercial property, make sure you can legally house the business you want to run in that location. Otherwise, make sure your lease or contract… Read more ›

As business owners, reliance on employees and vendors to help your dealership run smoothly is par for the course. Sometimes, those vendors and individuals take advantage of situations to increase their profits. Vendor fraud involves payments made to actual or fictitious vendors for personal gain. It is a lucrative industry that can take tens to hundreds of thousands of dollars off your bottom line. Types of Vendor Fraud There is a good chance your dealership has experienced some form of… Read more ›

If you own a successful small business with no employees, you might be ready to set up a retirement plan. Or you might want to upgrade from a more-basic SIMPLE IRA or Simplified Employee Pension (SEP) plan. Here are two options — solo 401(k)s and defined benefit pension plans — to consider if you have healthy self-employment income and want to contribute substantial amounts to your retirement nest egg. Important: This article is geared toward self-employed individuals. That includes sole proprietors,… Read more ›