Payroll costs must always be controlled. It’s important to know not only what is a fair and reasonable labor rate but how your actual realized labor rate differs from your desired labor rate. A Labor Analysis Report is a useful report to measure how well labor is utilized. Project managers and owners can use this report to measure actual job production against estimates.
As a business owner you need to quickly identify problem areas. Reports need to be formatted so that this information is readily available and will highlight problem areas that require immediate attention.
With paperless processing time reports can be prepared away from the office and in the field and sent via email back to the office. The hours are automatically coordinated and posted to the payroll records. Saves time and provide better information and reports.
Laptops and Tablet Computers
Service technicians are able via their laptop or tablet computer to prepare work orders in the field, reducing the time and expense of preparing manual copies that slow billing down and could be lost. Technician have immediate access to parts and labor schedules. Today’s systems can record customer and technician signatures allowing for a more secure and professional billing system.
Projected Job Costs
Tracking and controlling job costs is critical to maximizing profitability. By constantly collecting costs associated with labor, materials, subcontractors, equipment rental and more you can constantly monitor the status of job costs and profitability and compare to estimates. For some contractors this task never gets done.
Benefits of Using Unit Costs and Unit Productivity per Hour
In the construction industry productivity can be measured. Detailed production reporting provides a very accurate measurement of job cost data and can provide critical information that can make the difference between a successful contractor and one that is not as successful. The benefits of production reporting are: 1) as a contract progresses it allows the contractor to see the job as it develops, 2) it clearly shows to the contractors and forecasts their costs on a daily, weekly, or as needed basis, 3) it provides exact historical information and data for better analysis of current jobs and operations, and 4) highlights problems and cost overruns early in the job possibly allowing positive adjustments to be made to the job.
Material costs for contractors are often a major cost. A good purchase order system is a document that a contractor would issue for materials or other costs to a vendor to complete a job and can be used to track your expenditures. A good purchase order system can track individual shipments to bulk orders or to specific jobs.
Time and material billing
There are three common reasons why a contractor would use a time and material or cost plus contract.
- To avoid setting a sales price or uncertainty in creating a sales price.
- To avoid estimating jobs.
- Time and material billing or cost plus allows contractors to invoice for all their costs, overhead, and a profit margin.
- Prevailing wage rates
- Union fringes and calculations
- Multi state
- Job reporting and job costing. There is a right way. A good payroll system offers the contractor a way to handle all of their payroll needs correctly and easily.
Payroll for Contractors
It can get complicated with…
CONSTRUCTION TAX PREPARATION
BUSINESS TAXES CAN BE MINIMIZED
The amount your business pays is not fixed.
You know your business. Goldman & Co., CPAs knows taxes. You’re busy managing your business. It’s our job to provide tax advice and prepare the business tax returns of our clients to comply with IRS and state filing requirements. We understand the complexities of the IRS tax code and how it can be best applied to a client situation. We’re specialists when it comes to minimizing taxes and business risks.
CONSTRUCTION INDUSTRY BUSINESS TAX PREPARATION
Any business and investment decision you make will have tax consequences.
Goldman & Co., CPAs professionals possess deep understanding of the tax laws, so that we can minimize the amount of business taxes you pay. Our services are customized to you and your business situation.
Key Business Tax Services
Business tax preparation
S Corporation, Regular Corporation, LLCs, Partnerships, and Sole Proprietorships
Business tax planning
State and local tax services
Tax credits including historic rehabilitation credits, energy savings credits, jobs credits, other
Year-end tax planning and multi-year projections
Key Construction Tax Services
There are specific tax issues that are unique to the construction industry. Let our experience and knowledge of the construction industry help you to take advantage of what’s available. Key construction tax services include:
Choosing between cash and accrual method of accounting
Classify yourself as either a small or large contractor
Job costs and allocating indirect costs
Percentage of completion method
Completed contract method
Domestic production activities deduction