 HARDING, SHYMANSKI & COMPANY Certified Public Accountants and Consultants
|
|
|
| See What Our Clients Are Saying... | |
|
|
|
| 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. |
|
|
Key Performance Indicators |
A recent article published in Construction Executive discusses how the use of key performance indicators can increase the likelihood of construction business owners achieving financial success. Some basic key performance indicators all contractors can benefit from include:
- Cash flow
- Labor productivity
- Schedule variance
- Revenue by labor hour
- Gross profit by labor hour
Many construction accounting software packages can generate these reports. QuickBooks can also be used to export financial information to spreadsheets, where the performance indicators can be calculated on a regular basis. In addition to tracking these standard performance indicators, contractors should also embrace the concept of "nothing is sacred." It is beneficial to look for trends such as the number of sales per prospective customer contact, number of sales to repeat customers, profitability within a physical range of the home office, and labor productivity by the day of the week.
Through the use of these performance indicators, a firm can develop the single denominator that drives its economic success. The single denominator is characterized as the primary objective that a company can use to increase its success, and is frequently unique among different contractors. Ultimately, key performance indicators can allow contractors to rethink how business is approached and creatively analyze the mission of their company.
For more details on using key performance indicators to maximize your company's financial success, please contact Randy Schulz, CPA at (800) 880-7800.
(Source: *"Find Your Sweet Spot" article by Robin Word featured in the August 2011 issue of Construction Executive) |
|
|
|
|
Occupational Fraud Prevention | |
In a recent report issued by the Association of Certified Fraud Examiners (ACFE), it was estimated that a typical organization loses five percent of its revenue to fraud-related activities. Additionally, smaller businesses are at a higher risk for occupational fraud, due to the frequent occurrence of insufficient internal controls. The ACFE report also stated that fraud occurs for a median time period of 18 months before it is detected. Moreover, over 80 percent of occupational fraud is committed by a key employee in departments such as sales, operations, accounting or upper management. Following is a list of key steps employers can take to assist in fraud prevention:
- Implement internal controls
- Institute a fraud hotline
- Set an ethical tone at the top
- Hire, promote, and train ethical employees
- Utilize fair and balanced discipline
- Identify and measure potential risks
- Don't rely exclusively on an external financial audit
While it may be difficult for many small businesses to take the time to implement new fraud prevention and detection mechanisms, it is important to remember that key employees with great knowledge of the company and its operations are often the greatest threat for fraud perpetration.
For more information on fraud prevention and detection, please contact Priscilla Capes, CPA, CFE, AAP at (800) 880-7800.
(Source: *Fraud Prevention Article - "Seven Ways to Prevent Fraud at the Top" article by Yassir Karam featured in the August 2011 issue of Construction Executive)
|
|
New Pension Plan Limits set for 2012 | |
The IRS has recently announced the updated dollar limitations for tax-qualified defined benefit and defined contribution plans. These new limits include cost of living adjustments and are summarized in the table below.
|
Qualified Plan Limits |
2011 |
2012 | |
Elective Deferrals |
$ 16,500 |
$ 17,000 | |
Catch-Up Contributions |
$ 5,500 |
$ 5,500 | |
DB plan annual benefit limit |
$195,000 |
$200,000 | |
DC plan 415 limit |
$ 49,000 |
$ 50,000 | |
Compensation limit |
$245,000 |
$250,000 | |
Top Heavy Key Employee |
$160,000 |
$165,000 | |
Highly Compensated Employee |
$110,000 |
$115,000 | |
Social Security Taxable Wage Base |
$106,800 |
$110,100 |
For more information on the updated limits, please contact Paul Esche, CPA, CCIFP, CCA at (800) 880-7800.
(Source: *New pension plan limits - Obtained from The Newport Group website www.newportgroup.com)
|
|
2011 Three Percent Withholding Repeal and Job Creation Act | |
The Three Percent Withholding Repeal and Job Creation Act was signed on November 21, 2011. The major items in the new law include the repeal of the three percent withholding on government contractors and expands tax incentives to encourage employers to hire military veterans.
The Tax Increase Prevention and Reconciliation Act of 2005 enacted a three percent government withholding requirement on certain payments to government contractors and others providing property or services. The mandatory withholding applied to payments by state and local governments as well as their political subdivisions and payments by the Federal government. The new law repeals this mandatory withholding.
The Work Opportunity Tax Credit (WOTC) rewards employers with a tax credit for hiring individuals from targeted groups. The new law expands the WOTC by creating the Returning Heroes Tax Credit and the Wounded Warriors Tax Credit. Employers that hire veterans who have been looking for employment for more than six months may be eligible for a Returning Heroes Tax Credit of up $5,600 per employee; employers that hire veterans who have been looking for employment for less than six months may be eligible for a credit of up to $2,400 per employee. Employers that hire veterans with service-connected disabilities who have been looking for employment for more than six months may be eligible for a Wounded Warriors Tax Credit of up to $9,600 per employee.
|
|
|
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
www.hsccpa.com
|
| 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. |
|
|
|
|
|
