Nonprofit Blog

Contractors by their nature and occupation have a need to be in control. Nearly every project includes a struggle to maintain control of costs, safety and quality.

The United States is facing consequences from decades of deferred maintenance and underinvestment in infrastructure. At the same time, available public fund levels for such projects are low and resistance to increased taxation is high.

In the construction industry, most of the day-to-day action takes place in the field. So it’s only natural that contractors are eager to find mobile apps for smartphones and tablets that can help them work better. In fact, Smith & Howard's recent survey of Georgia construction companies shows that 91% of respondents are using iPads or tablets.  

After 10 years in the field, a remodeling contractor had worked on quite a few jobs. Some had been set up as fixed-price contracts and others had been performed on a cost-plus basis. Looking to improve his company’s financial performance, he asked his CPA to review the pros and cons of both formats and to recommend the best approach.

A small business’s ability to track inventory and minimize errors, omissions and fraud depends on the existence of a robust inventory reporting and tracking system. Some small businesses continue to rely on a manual inventory system. Others have begun to computerize their inventory tracking process as the costs of doing so have decreased. While the underlying inventory process may vary, tracking inventory includes the following general elements:

Businesses with low credit scores are unlikely to obtain access to affordable financing. This may seem like a matter of common sense to bankers, but applicants with low credit scores are often surprised when they’re turned down — or offered less favorable terms than expected. Before prospective borrowers submit loan applications, remind them about the importance of establishing and maintaining the highest business credit score possible.

Would you like someone to tell you when there’s substantial doubt that a borrower will be able to continue normal operations over the next year? Fortunately, the going concern assumption underlies all financial reporting done under U.S. Generally Accepted Accounting Principles (GAAP). And, it’s something CPAs evaluate during financial statement audits. Here are a few items they look for during that assessment.

Bankers have a number of tools at their disposal to assess a prospective borrower’s loan application, but nothing can take the place of a face-to-face meeting. Of course, most borrowers respond honestly when they meet with bankers about their financial condition. But those with less than stellar financial records may be tempted to downplay their true economic situation. How can a banker determine if a loan applicant is telling the whole truth — or not? To help you vet loan applications, here are some interview tips that forensic accountants use to unearth exaggerations, misstatements and outright fraud when managers are suspected of dishonest behavior.

Georgia’s Purchasing Managers Index (PMI) — a reading of economic activity in the state’s manufacturing sector — increased significantly for the second straight month, rising by 9.3 points in March to 72.4. The national PMI slips marginally but is still consistent with industrial expansion.

Last year, over 6,000 manufacturers claimed more than an estimated $10 billion in research tax credits (RTCs), with each manufacturer’s average benefit exceeding $1 million. Generated in part by manufacturers’ efforts to develop new and improved products and processes, these benefits were also generated by their continued investment to develop or improve software to manage or automate production processes and business intelligence, among other things.