HARDING, SHYMANSKI & COMPANY
Certified Public Accountants and Consultants 
 
January/ February 2010
IN THIS ISSUE
CPAs Can Help Builders Increase Profits, Cash Flow...
CFMA Survey Results Now Available!
Making It Easier for Americans to Support Haiti
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Construction and Real Estate Industry
Because Harding, Shymanski is committed to providing quality service to our construction, real estate and mining clients, we have selected a team of dedicated professionals to serve as your industry's consultants. These individuals understand the language and key issues unique to your industry and possess the drive and determination to help you manage your company on a proactive basis.
CPAs Can Help Builders Increase Profits, Cash Flow...
(Excerpt from article written by Michael J. Otis, Journal of Accountancy - December 2009)
 
Tips to increase profits and cash flow:
  • Take every available tax credit, including various Enterprise Zone tax incentives, credits and deductions for construction of energy-efficient properties, and taking advantage of cost segregation opportunities.
  • Save on workers' compensation insurance with safety programs.  Be sure to see if you qualify for certain credits for your policy including the Drug Free Workplace Credit, Safety Credit and the Contractors Premium Rate Credit.
  • Update overhead percentages to ensure they are still accurate.
  • Hold a weekly collection meeting to review overdue receivables and monitor collection of retainage.
  • Manage subcontractors and material suppliers to keep the project on schedule.  Issue notices if necessary.
  • Partner with subcontractors and suppliers to win bids.
  • Set up a rolling cash flow projection to outline anticipated cash flows over the next 12 months.  Update the projection on a weekly basis.
  • Close out pending change orders and back charges weekly.
  • Take advantage of the U.S. Small Business Administration's new American Recovery Capital (ARC) Loan Program.
For help on how to maximize your profits and cash flow, contact Paul Esche or Greg Elpers at (800) 880-7800.
CFMA Survey Results Now Available!
This survey details the important data contractors need to stay competitive and provides aggregate data by type of contractor, dollar volume, and geographic region.
 
See how your Company stacks up against the Best in Class Contractors based on several indicators of financial health: 
  • Return on Assets:  Best in Class companies had an average ROA of 20.9% - 9.8 percentage points higher than the typical company.
  • Return on Equity:  Best in Class companies had an average ROE of 51.2% - 12.7 percentage points higher than the typical company.
  • Fixed Asset Ratio:  Best in Class companies had an average Fixed Asset Ratio of 19.1% - 18.6 percentage points higher than the typical company.
  • Debt to Equity:  Best in Class companies had an average Debt to Equity ratio of 1.4 - 1.1 lower than the typical company.
Contact Paul Esche or Greg Elpers at (800) 880-7800 to get a full survey and benchmark analysis.
 
Making It Easier for Americans to Support Haiti
In the days since the earthquake in Haiti, Americans have shown their generosity with millions of dollars in donations.  President Obama signed a bill into law on January 22, 2010 that makes it easier to give.  This legislation will allow taxpayers to receive the tax benefit from donations made to the Haiti effort in this tax season, rather than having to wait until they file their 2010 tax returns next year.  Specifically, cash donations to charities for the Haitian relief effort given after January 11 and before March 1 of this year may be treated as if the contribution was made on December 31 of last year so that the contribution can be deducted from 2009 income. This measure applies to monetary donations, not goods or services.
 
Harding, Shymanski & Company, P.S.C. provides accounting, tax, and consulting services to clients from offices in Evansville, Indiana, and Louisville, Kentucky.
 
We are committed to quality.  Adding value to the services we provide is our most important goal. Our unwavering deducation and commitment to quality resonate throughout every aspect of our work.
 
Call us today!  (800) 880-7800 in Evansville and (502) 584-4142 in Louisville
 
Disclaimer
The information contained in this email is for general guidance on matters of interest only. The publication does not, and is not intended to provide legal, tax or accounting advice.