Category Archives: Construction Industry

R&D Credits for the Construction Industry

When most people think of the term “research and development,” they picture lab coats, but far more activities are eligible for the credit, including many undertaken by the construction industry. Let’s take a look at some of the projects that could qualify for the R&D credit and what contractors should know to make use of […]

Accounting for Contractors: Cash or Accrual Method

For most contractors, the decision to use the cash or accrual method is not a simple decision, but it’s one of the first significant decisions about the business they’ll make. Cash vs. Accrual Cash basis. Income is recorded as it is received and expenses as they’re paid. This method does not take into account any […]

Contracts Present a Challenge When Adopting the New Revenue Recognition Standard

Revenue recognition is a complex accounting area that companies cannot afford to get wrong. The new revenue recognition standard, ASU 2014-09, Revenue from Contracts with Customers (Topic 606) goes into effect on December 15, 2017, for public entities and other entities one year later. The countdown is on, and it’s causing a lot of apprehension […]

Developments in Indirect Cost Rate Audits for Architectural and Engineering (A/E) Firms

In early October 2016, I had the opportunity to travel to Chicago, Illinois to interact with some of the authorities responsible for aiding in development of the most current American Association of State Highway and Transportation Officials (AASHTO)-Audit Guide.  Speakers, Dan Purvine and Jerry Jones, ensured no state Department of Transportation members were present so […]

FAR Audits – Update for Engineering Firms

Brown Schultz Sheridan & Fritz (BSSF) performs Federal Acquisition Regulation (FAR) audits for engineering firms doing business with various state Departments of Transportation (DOTs). The American Association of State Highway and Transportation Officials (AASHTO) has produced a Uniform Audit & Accounting Guide which governs these FAR audits. All state DOTs should be abiding by the […]

Construction Industry Accounting – Changes to Revenue Recognition

The CFMA (Construction Financial Management Association) recently presented a webinar on the new revenue recognition accounting standard (ASU 2014-09 Revenue from Contracts with Customers (Topic 606)) which was issued May 28, 2014 by the Financial Accounting Standards Board (FASB). If you were unable to participate in the webinar, some valuable highlights introduced certain complexities that […]