Blogs

After working in the industry for more than 30 years, most recently serving as Executive Director of the Construction Industry CPAs/Consultants Association (CICPAC), John Corcoran has started his semi-retirement. Born in the Chicago area, Corcoran passed the notoriously difficult CPA exam in 1969, receiving certification in Illinois before moving to Arizona in 1972 to work in public accounting. In 1984 Corcoran accepted a position as CFO of a construction company, where one of his major responsibilities involved communication with those in the surety field. It was then that he discovered the joy of working with people in the construction/finance space. ...

Construction contractors need to work with a CPA who knows their industry to help ensure their financial performance is in line with healthy benchmarks and to remedy any signs of financial trouble, says Julian Xavier, CPA and managing principal of CliftonLarsonAllen, LLP 's Walnut Creek, CA office. Xavier serves on the NASBP CPA Advisory Council . CPAs can help contractors understand finances and plan accordingly, allowing them to win business as well as being more financially prepared. Xavier says healthy benchmarks for contractors include: • Cash greater than 5% of annual revenue • A line of credit of at least 5% of annual revenue • Tangible equity ...

The number one issue construction contracting companies will face over the next 10 to 20 years is succession planning, according to accounting firm BKD, LLP . As the amount of wealth in the nation transfers generations, that also includes wealth tied to family-owned firms. The orderly transfer of control and assets is critical to the future success of these owner-managed or family-run enterprises. A lack of planning and clear succession causes many problems for companies and can be incredibly stressful for family members, owners and employees. Certified public accountants have a deep involvement in companies' financial operations and owners’ personal finances, ...

An open dialogue between a surety, contractor, and certified public accountant is crucial to guide emerging contractors finding themselves in new territory when entering the surety market, says David V. Jean, a CPA and a principal of Albin, Randall & Bennett . “It's pivotal for emerging contractors going to the next level to have strong financial-management practices in place,” says Jean, who serves on NASBP's CPA Advisory Council , a NASBP resource team of CPAs with expertise in areas including financial issues concerning contract and commercial surety. The importance of an open dialogue comes with the need for continuous involvement by the CPA in ...

Selecting an accounting firm is a critical decision for construction firms, particularly those looking to qualify for bonding for a contract. Certified Public Accountants (CPAs) and other trusted advisers play an integral function to a construction firm seeking bonding, says Jack Callahan, CPA, Partner and Construction Industry Practice Leader at CohnReznick and a participant on the NASBP CPA Advisory Council . Callahan says his firm takes its role as an independent CPA for its contractor clients incredibly seriously. A key focus of the CPA is presenting financial information in an appropriate format that is in accordance with generally accepted ...