2021 Tax Planning Opportunities for the Construction Industry

2021 Tax Planning Opportunities for the Construction Industry

2021 Tax Planning. Changing entity types, accounting methods, new deductions for qualified businesses, new depreciation alternatives and new tax incentives for qualified investments are just some of the provisions in the TCJA that will require careful analysis and proactive planning for construction clients. The CICPAC Tax Thought Leadership Committee has compiled an updated summary of those changes potentially impacting construction clients in this whitepaper.

Key to the Sale: Confidential Information Memorandum

Key to the Sale: Confidential Information Memorandum

Entrepreneurs and business owners spend years building their business — and often years before that dreaming of and planning for it. Every owner knows the journey it took, from the highs of launching the business or securing the first customer to the lows of meeting an early payroll liability or facing the uncertainties of the recent pandemic.

A Contractor’s Guide to State Nexus

A Contractor’s Guide to State Nexus

Nexus is defined as a substantial connection to a state that allows the state to tax a taxpayer. Although this may seem pretty straightforward, things can get a little complicated for contractors working on out-of-state jobs. It’s important to determine if your construction company is responsible for state sales tax or income tax before bidding on an out-of-state job to ensure an accurate bottom line on the project and to also ensure compliance with state agencies.

Data Analytics in the Construction Industry

Data Analytics in the Construction Industry

With the endless expansion of technological advancements in the past couple of decades, companies are now able to collect enormous volumes of data from all areas of business. Data analytics is the solution to transform all the data into information that can be used to improve your company’s bottom line. Identifying your company’s key performance indicators (KPIs) is the most important part of using data analytics to help achieve your business’s goals. KPIs can have a variety of origins ranging from measuring financial ratios to customer relationships.

What’s the Fate of Your Estate?

What’s the Fate of Your Estate?

Most construction business owners will spend a lifetime making sure their businesses succeed. After all of your hard work, do you really want to leave the fate of your business in someone else’s hands? As it is likely your largest asset, you’ll want to ensure your business is protected through a detailed estate plan. This plan should focus on minimizing estate and gift taxes as well as protecting your wealth for your family.

Succession Planning = Peace of Mind

Succession Planning = Peace of Mind

Statistics indicate baby boomers account for more than 50% of the construction industry. That means half of owners, along with their skills and knowledge, are headed towards retirement. Even more alarming is only half of those owners have a succession plan. If your company faces a disruption or change in ownership it reduces its chance of survival to only a small percentage. Even owners who don’t have an immediate retirement on the horizon need to have a plan.

Will Your Business Survive Without You?

Will Your Business Survive Without You?

Less than a year. That’s how long it took a successful construction company to permanently close after the owner unexpectedly passed away. Before his death, the company was thriving. But without a business continuity plan in place, the business didn’t survive a year.

Greg Kurth

Greg Kurth

Greg Kurth is a manager in construction services at HORNE where he specializes in federal and multistate tax compliance, identifying tax planning opportunities and other financial and business advisory assistance.

Matt Ferrell

Matt Ferrell

Matt Ferrell is a director at HORNE where he provides assurance services to the construction industry. He joined HORNE in 2007.

Matt Elkins

Matt Elkins

Matt Elkins is a senior manager at HORNE. He provides assurance services as well as management advisory services to the construction industry. He joined HORNE in 2007. His experience includes job cost accounting, revenue recognition, management reporting and analysis for contracts.

Justin Egger

Justin Egger

Justin Egger is a senior manager in the construction services practice at HORNE. He specializes in corporate and individual tax compliance, resolution of tax controversies, and tax planning. He strives to simultaneously manage the tax department’s workflow, provide timely and accurate deliverables, and build and maintain relationships with clients and prospective clients.

Nick Dubuisson

Nick Dubuisson

Nick Dubuisson is a construction senior manager where he provides the financial clarity needed to support his clients’ business goals.

Mitch Beckwith

Mitch Beckwith

Mitch Beckwith is a director at HORNE where he helps construction clients navigate their tax and general business administration needs. Mitch has experience in many industries including construction and general contracting, food and accommodation services, real estate, manufacturing, healthcare and agriculture.

Tax

Tax rules get more complex every year. Every decision you make impacts your tax situation. HORNE knows the vital impact of proactive tax planning.

Risk Management

Risk management involves every facet of your organization, regardless of your industry. We help transform risk into opportunity to give you peace of mind.

Business Exit Strategy

Business Exit Strategy

When you’re busy juggling projects, it’s hard to picture walking away from your business. But sooner or later, all businesses transition — whether through acquisition, inheritance, retirement or the death of the owner.

Business Exit Strategy

Fraud, Forensics & Litigation

Fraud has always been a concern for contractors. But recent technological advances such as cybersecurity, artificial intelligence and internet-enabled machinery have opened a new realm of potential risk and exposure.

Business Exit Strategy

Strategic Consulting

As your business grows, so will your needs. Our Strategic Consulting services can help you manage growth and profitability and position you to address challenges and opportunities as they arise.

Business Exit Strategy

Managed Accounting Services

Day-to-day financial tasks are time consuming and take in-house resources that are often better used in other areas. Free yourself from having to staff, train and oversee back-office functions, and remove the headaches and worries of turnover and compliance with Managed Accounting Services from HORNE.

Business Exit Strategy

Audit & Assurance

CONSTRUCTION Audit & Assurance Find the opportunities you’ve been missing. Where can you improve performance? How can you evaluate job costs more accurately? What can you do to increase the chance that bonding is available when you need it? At HORNE, we work...
Business Exit Strategy

Tax Compliance & Planning

With owner-operated companies, it’s easy to blur the line between personal and business finances. How can you take a long-term financial view for both? Is it smarter to leave money in the business or take it out? What’s the best way to manage your personal and business taxes?

Managed Accounting Services

The amount of time it takes to oversee routine accounting and financial operation functions is increasing. Let HORNE provide your managed accounting services.

Data & Technology

Data & Technology

Competitive advantage goes to the business that leverages data, automates its workplace & has a solid infrastructure. Transform your data & technology today.

Cybersecurity

Cybersecurity

Reduce exposure to cybersecurity threats. Stay ahead of the ever-changing regulatory requirements and strengthen your cybersecurity posture.

Audit & Compliance

Audit & Compliance

HORNE’s audit and compliance services provide a strategy to institute controls and manage risk and compliance to keep you prepared for opportunity.

Wes T. Winborne

Wes T. Winborne

Wes Winborne’s construction clients come to him for peace of mind. Whether they face tasks like audit and tax support, internal control reviews, or guidance for issues like job costing, bonding or computer consulting, I am dedicated, experienced and ready to do what it takes. Our team knows construction and the financials behind it. To help you focus on your building your business, we focus on taking care of accounting and offering helpful guidance.

Lee B. Klein III

Lee B. Klein III

The construction industry is constantly evolving and contractors need a visionary partner to help guide them to successfully compete, grow and plan for the future. Lee Klein not only serves clients by delivering on opportunities and helping them solve today’s problems but also has the foresight to help them anticipate and prevent tomorrow’s.

Joel K. Bobo

Joel K. Bobo

Joel Bobo truly enjoy contractors. This construction industry is filled with people who are hard-working, loyal and family-oriented. We help contractors accomplish important tasks that strengthen their business, including helping them maximize bonding capacity, understand their internal cost structure, increase profitability while keeping tax burden at a minimum, and create succession planning.

Business Exit Strategy

Job Costing

You can’t predict and protect profitability unless you understand the true cost of doing business. A thorough analysis of job costs can reduce your risk of loss, as well as help fine-tune profitability as your business grows.

SBA 7(a) Paycheck Protection Program Forgiveness Assistance

SBA 7(a) Paycheck Protection Program Forgiveness Assistance

Many companies and individuals have applied for funds from the Small Business Administration (SBA) 7(a) Relief Loans Paycheck Protection Program (PPP). Our previous communication addresses the recent suspension of the PPP due to inadequate funding. For our clients that did not receive funds or approval prior to the suspension, we will continue to work on completing applications and submitting to lenders in anticipation of additional funds being made available under the PPP. 

Beware: Phishing Emails Target COVID-19 Small Business Loans

Beware: Phishing Emails Target COVID-19 Small Business Loans

It has come to our attention that a new email phishing or “spoofing” scheme is being sent to businesses seeking financial assistance due to COVID-19. The emails are an attempt to scam business owners that have applied, or are considering applying, for Paycheck Protection Program loans backed by the U.S. Small Business Administration. These emails may look legitimate and appear to come from your bank.