 HARDING, SHYMANSKI & COMPANY Certified Public Accountants and Consultants
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| See What Our Clients Are Saying... | |
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Mark Your Calendar!!
Harding, Shymanski & Company, P.S.C.'s
Construction Team will host a brown bag luncheon on "Risk Management" in Evansville, Indiana, on August 10th, featuring speakers from Van Meter Insurance.
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| Construction and Real Estate Industry | |
Because Harding, Shymanski & Company, P.S.C. is committed to providing quality service to our construction and real estate 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. |
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The Value of Sponsoring a Retirement Plan and Engaging a Third Party Administrator |
A 401(k) retirement plan is a great vehicle for saving on taxes and building a retirement fund for yourself. It also is a very crucial employee benefit to your employees, which helps with attracting and retaining good employees.
Whether your company currently has a 401(k) retirement plan or you are considering starting one, there are many aspects that must be considered in the design and administration of the right 401(k) retirement plan for your specific situation. Questions like these need to be considered: What are your main objectives for sponsoring a plan? Is your goal to maximize the amount funded to the plan for yourself, while minimizing your expenditure for others? Do you want to use it as a recruiting tool? etc., etc.
A Third Party Administrator (TPA) can guide you through the myriad of plan designs and regulations that affect a 401(k) retirement plan. In addition, the TPA is invaluable with assistance in employee education, document preparation and interpretation, distribution and loan processing, compliance testing, required tax filings and many other essential functions related to a 401(k) plan.
Harding, Shymanski & Company, P.S.C. has a TPA department that devotes 100% of their time to 401(k) third party administrative services. We know plan design and can find the right plan for you and your company. We're local and available and we work hand in hand with your chosen financial professional to bring a great retirement plan solution to you and your business.
For more information on starting a new plan or improving your existing plan, please call Matt Folz at (800) 880-7800 or email mfolz@hsccpa.com.
Article written by Chris Hobbs, QKA, at Harding, Shymanski & Company, P.S.C. |
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Best in Class Companies | |
CFMA's 2010 Construction Industry Annual Financial Survey recognizes Best in Class contractors for being the top 25% of their peer group in financial performance. Best in Class status is based on five indicators of financial health:
- Return on Assets: 2010 Best in Class companies achieved an average ROA of 19%, a margin 10% points higher than the typical contractor while. Best in Class ROA was 25.3% in the 2009 Survey.
- Return on Equity: 2010 Best in Class companies had an average ROE of 52%, compared to 26% for the average participant. The Best in Class ROE, however, was 72.6% in 2009.
- Fixed Asset Ratio: 2010 Best in Class companies once again used less equity to finance purchases of fixed assets than the average respondent. All companies had 39% fixed asset ratio, compared to 40% in the 2009 Survey. Best in Class companies lowered their ratio from 16.8% in last year's report to 16% in the 2010 Survey, continuing to show better liquidity than the average company.
- Debt to Equity: 2010 Best in Class companies have an average debt to equity ratio of 1.7, in contrast to 1.8 for the typical company. 2010 Best in Class companies took on less financial risk (debt) in order to fund their companies compared to the typical company.
- Working Capital Turnover: Working capital for 2010 Best in Class companies was turned an average of 10.7 times, slightly more than the average respondent (10.3 times).
For a full benchmark survey to find out how your company stacks up, please call Paul Esche, CPA, CCIFP, CCA, at (800) 880-7800 or email pesche@hsccpa.com.
Source: "Best In Class Companies" article in the CFMA Building Profits magazine (March/ April 2011 issue)
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Valuing Ethics Programs | |
A recent survey conducted by FMI Corporation found that unethical behavior creates an estimated loss between $5,000 and $50,000 for each million dollars spent on a construction project. Additionally, the 2010 Global Economic Crime Survey published by Price Waterhouse Coopers revealed that nearly one-fourth of construction and engineering companies experienced economic crime within the previous three years. The most common problems experienced were related to asset misappropriation, bribery or corruption, and accounting fraud.
Throughout the construction industry, ethics programs are progressively being regarded with increasing importance and are gaining in prominence. Creating a written ethics program that structures the culture of a company is an important test of an effective ethics program, and it requires excellent leadership abilities.
Contractors who successfully bid on Federal contracts in excess of $5 million are now required to have an ethics and compliance program in place within 30 days of receipt of the award. Among other items, the program must:
· Establish standards and procedures to prevent and discover wrongdoing;
· Provide for periodic risk assessments;
· Promote periodic communication and awareness of the ethics code; and
· Provide and advertise an anonymous hotline for reporting breaches of conduct.
For more information on starting a new plan or improving your existing plan, please call Priscilla Capes, CPA, CFE, AAP, at (512) 584-4142 or email pcapes@hsccpa.com.
Source: "Ethics Programs: Federal Imperative, Cultural Opportunity" article from the March 2011 issue of ICCIFP's "Inside the Institute" newsletter.
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Harding, Shymanski & Company, P.S.C. provides accounting, tax, and consulting services to our 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 dedication 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
www.hsccpa.com
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| 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. |
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