When Construction Revenue Growth Doesn't Lead to Profit
Revenue growth can be a positive sign for construction companies, but increased sales don't always translate into increased profitability. Contractors can support sustainable growth by monitoring job profitability, gross margins, cash flow, backlog quality and overhead efficiency while using timely financial data to guide decision-making. In this article, I explore how contractors can look beyond revenue growth and use financial insights to protect margins and achieve long-term profitability.
Exit Planning for Contractors: Consider the QSB Stock Exclusion
The qualified small business (QSB) stock exclusion can offer significant federal tax savings for construction business owners planning an exit, potentially allowing eligible shareholders to exclude some or all of the gain from the sale of qualifying stock. Recent changes have made this tax-saving opportunity even more valuable, but strict requirements related to entity structure, business activities and holding periods apply. In this article, we explain how the QSB stock exclusion works, key eligibility requirements and important planning considerations for contractors considering a future sale.
Increase Visibility With Construction Supply Chain Software
Supply chain disruptions can quickly affect construction schedules, costs and profitability. Supply chain management software can give contractors greater visibility into procurement, inventory, suppliers and deliveries, helping them identify potential issues earlier and respond more effectively. In this article, we explore how supply chain technology can strengthen oversight and risk management, along with important cybersecurity, implementation and cost considerations.
Successful construction bidding requires more than simply submitting as many proposals as possible. A more strategic bidding process can help contractors focus on the right opportunities, improve estimating accuracy and pursue projects that align with their financial goals. In this article, we explore how using reliable data, evaluating opportunities carefully, demonstrating value beyond price and learning from past bids can lead to stronger bidding decisions and more profitable growth.
Dannible & McKee, LLP is a leading CPA firm that has been providing audit, tax, accounting and financial management consulting services to clients nationwide since 1978. Known for our technical expertise and deep industry experience, we are committed to delivering high-quality service tailored to our clients' needs. As trusted advisors to the construction industry, we are highly respected among construction leaders and actively engaged with many organizations that shape the sector. We stand out from our competition by conducting one-on-one, year-end planning meetings to review your operations and plan for income taxes, banking and bonding concerns. With a comprehensive understanding of all aspects of construction, we help businesses navigate daily operational challenges, maximize cash flow and develop long-term strategies for sustained success.
