This article was written and produced by Rick Bigham, Partner, and Marie Gavin, Manager. Looking to get in touch with Rick or Marie? Reach out today: firstname.lastname@example.org, email@example.com.
This fall The Bonadio Group’s Albany Construction Team partnered with NESCA, AGC, and ECA to present a series of webinars for construction contractors focusing on the basics of construction financials, understanding construction job costing and overhead allocation, and preventing and detecting fraud in your construction business.
The series was kicked off on October 15th with Rick Bigham, Albany Commercial Partner, and Marie Gavin, Albany Commercial Manager, presenting on the basics of construction financials, with a focus on the following areas:
- What does my Banker and Bonding Company look for when reviewing my Financial Statements?
- How do I decipher the Components of a Construction Job Schedule?
- How Important are Accurate Cost Estimates anyway?
- What does the “Best in Class Contractor” do to get ready for their year-end?
Now more than ever, it is important for contractors to present timely, conservative, and reliable financial statements and job schedules. In 2020, keeping to the “Best in Class” attributes in focus will be important as there is significant anxiety surrounding the future state of the economy and political landscape. Contractors should be prepared for their bank and bonding companies to add an extra layer of scrutiny to their interim and year-end results.
At the completion of the presentation Construction Contractors were left with the following takeaways:
- Maintaining open communication with your banker and bonding company to lessen unwanted scrutiny at year-end.
- Understanding the components of a contractor's work in progress schedule and their flow to the Company’s balance sheet and income statement.
- The importance of accurate, realistic cost estimates on the job schedule.
- Understanding the attributes that make a construction contractor “Best in Class”.
- An overview of the common mistakes made by contractors and how to avoid them.
A copy of the full presentation deck from the webinar is available for download here.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute an accountant-client relationship.