Lean Inventory Valuation: Lean Accounting and GAAP Compliance Introduction

(Published in October 31, 2017 issue of Thomson Reuters “Tax & Accounting”)
Lean Accounting refers to a collection of principles, practices and tools that are used by lean companies to measure the business, control operations, analyze and make sound financial decisions and finally improve all financial processes.  Lean Accounting practices have been around since the early 1990’s, and as long as they’ve been around there have been some that argue Lean Accounting practices don’t comply with Generally Accepted Accounting Principles (GAAP). This idea then usually leads to a debate about Lean Accounting vs. conventional inventory valuation systems. Continue reading “Lean Inventory Valuation: Lean Accounting and GAAP Compliance Introduction”

Successful Succession Planning Strategies

(Published in Construction Accounting and Taxation, May/June 2017 issue)
As 70 million baby boomers reach retirement age, it is estimated that 12 million privately owned businesses will sell or bequeath assets worth $10 trillion over the next two decades.1 Proper succession planning is just as crucial for the boomers’ employees as it is for the exiting business owners. Our firm has seen a steadily growing number of contractor clients enter into business transactions over the past two years, and there are many more working on plans for that day. Continue reading “Successful Succession Planning Strategies”

Winning Strategies in the War for Talent

(Published in Construction Executive, June 2016 issue)
A top concern for most construction companies is the future of the workforce, including both field and office personnel. During the last several months, contractors have seen an increase in bidding opportunities with less competition, along with increased gross margin, which indicates a growing need for personnel. When the economy was in a downward spiral, many construction workers left the industry and haven’t returned. Plus, overwhelming numbers of workers are retiring and fewer people are joining the industry. All of these factors have combined to create a war for talent.

Companies can use several strategies to help retain current employees and attract new ones. Continue reading “Winning Strategies in the War for Talent”

Raising Your Interest in Working Capital Management

Lower interest rates in recent years have dimmed the spotlight on the essential business function of working capital management. Many companies have chosen to take advantage of lower interest rates by borrowing against their lines of credit instead of continually improving their working capital processes and collection practices. This strategy may be workable now, but what happens when interest rates begin to rise? Continue reading “Raising Your Interest in Working Capital Management”

Taking Command of Your Equipment Fleet

(Published in Construction Accounting and Taxation, March/April 2013 issue.)
Total annual construction spending put in place in the United States has dropped from a high of over $1 trillion pre-2008 to below $800 billion in the last few years according to FMI Corporation 2012 data. This 20 percent drop in spending has caused most contractors to evaluate their costs more diligently and in many cases to make drastic expense cuts. For construction companies with a large equipment fleet, this can be a daunting task. Continue reading “Taking Command of Your Equipment Fleet”

FASB Delays New Revenue Standard

The FASB has agreed to a one-year delay of the effective date for the new revenue reporting standard. Based on feedback from stakeholders and in light of forthcoming amendments to the new revenue standard, the FASB agreed to push back the implementation dates to allow adequate time for effective implementation. While the IASB is considering a similar one-year deferral of the new revenue standard, it has not released a final decision. Continue reading “FASB Delays New Revenue Standard”

2015 McGladrey Manufacturing & Distribution Monitor Report

With over 1600 participants from 15 different countries, McGladrey’s 2015 Manufacturing & Distribution Monitor Report presents the perspectives and expectations of manufacturing and distribution executives based around the world. Of the companies represented, 65% are based in the United States. This year, the Monitor is a series of reports on topics of concern for manufacturers and distributors, including: the executive summary, global growth, investing for growth and innovation, and information technology and data security.

Continue reading “2015 McGladrey Manufacturing & Distribution Monitor Report”