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Tom Kennedy

Real estate developers have some of the most complex accounting needs of any industry. Projects can span years. Investments are often held in separate entities. Each deal often comes with its own financing, investors, and reporting requirements. As a company grows, keeping track of all those moving pieces can put high demands on an internal accounting team. This combination makes real estate developers especially strong candidates for outsourced accounting

A nonprofit budget is the organization’s financial plan for the year. It lays out expected revenue, planned expenses and shows how money will be used across programs, fundraising, and administration. This helps nonprofit leadership see whether plans are financially realistic and identify areas where additional fundraising may be needed. This information can also help to uncover where financial gaps may exist. Finally, it also helps board members understand the overall financial health of the organization before making any governance decisions.

New tariffs are pushing up the cost of key materials used in construction and real estate development. A 25% tariff on imported steel and aluminum is already in effect, and additional tariffs may take effect in early April. With construction costs already high and supply chains still recovering from past disruptions, these trade policies are introducing more uncertainty into project planning and budgets. For businesses that rely on imported materials, the coming months could bring higher costs, potential delays, and sourcing challenges

Depending on your location, the end of the year can mean construction season is winding down. At the very least, construction company owners may be planning for a new year of projects, including staffing needs, technology upgrades, and new equipment investments. In work that can feel never-ending, it’s easy for important year-end planning to be deferred until later to address the daily issues that often arise. In the closing weeks of the year there are several tax planning opportunities including deductions and credits, the QBI deduction, and tax efficient investment strategies to consider.

The construction industry appears to be poised for more growth this year. It is expected that demand across most sectors will drive growth except for lodging, retail and private office projects. While growth is certainly welcome it does exacerbate issues such as poor worker training and the overall worker shortage. According to the 2024 Construction Hiring and Business Outlook Survey published by the American General Contractors of America, there are several areas driving workforce concerns. This includes the inability to fill open positions where it was found that 77% of respondents are having a hard time filling open positions.

The Georgia Manufacturing Investment Tax Credit is a financial incentive aimed at supporting businesses in the manufacturing and telecommunications sectors. By making capital improvements more affordable, this state credit encourages companies to expand and upgrade facilities, promoting economic growth and job creation throughout the state. The credit can offset up to 50% of a company’s Georgia corporate income tax liability, and any unused portion can be carried forward for up to 10 years.

The recent interest rate increases initiated by the Federal Reserve are designed to counteract increasing prices. While dealing with inflation is certainly important, many contractors are already challenged by the ill effects that it brings. Most notably, there has been an increase in the cost of building materials, equipment rentals, skilled labor, and supplies. The trend of increasing costs has made it difficult for many to thrive. While there are different ways to combat the effects of inflation, one of the most effective is through cash flow planning. Maintaining a consistent cash flow is essential to weathering the storm of economic issues.

Properly managing cash flow is essential for Atlanta contractors and construction companies. It provides the funding needed to start new projects, maintain existing ones, and pay for material, supply, labor, and other expenses. Concurrently, a strong financial position can help manage weather-changing economic conditions. With an expected decrease in new 2023 projects driven by rising interest rates, it’s essential to revisit cash flow management strategies. Implementing best practices now will permit the company to be in a strong position and prepare for the unexpected.

With median losses of $203,000, the construction industry ranks fourth among two dozen industries in the cost of damages arising from fraud. The nature of the work makes it an attractive target for bad actors. The confluence of long project lead times, multiple stakeholders, and participants, lots of moving parts, and different job sites all contribute to challenges in preventing and detecting fraud.

Managing a construction company has become an increasingly complex proposition. Not only are the traditional project management challenges still present, but several new complexities have arisen. Primarily the increase in the cost of materials and supply chain issues have made it more difficult to provide estimates and manage work schedules. Similarly, construction accounting is complicated and impacts cash flow, liabilities, and other important information.