b'Overlooked Assets: Year-Round Tax These strategies that reduce taxes also serve toimprove cash flow. Involving accountants earlyTips From a Construction Accountant ensures they can help craft a year-round plan thataligns with both a companys current situation andFor most construction firms, working with an accountant is long-term goals.often limited to matters for the year-end financial statements FINANCIAL STEWARDSHIPand tax returns. This has become such a routine practice that While taxes are an obvious starting point,its easy to forget that accountants have the potential to be construction firms are missing out on a wealth ofvaluable year-round financial strategists, offering insights and other opportunities by not involving their accountantsguidance that can positively impact a firms profitability, in standard business discussions. One of the mostgrowth and overall financial health. While tax planning is valuable services an accountant can provide is helpingundeniably important during the busy season, it is also to maintain a real-time picture of a companyssomething that should be carried out in collaboration with an financial wellbeing. By reviewing internal financialaccountant throughout the yearnot just at year-end time. statements on a monthly or quarterly basis,ALL YEAR ROUND accountants can spot trends or discrepancies thatMany businesses approach their accountant primarily when it might otherwise go unnoticed until its too late.is tax return time. While this is, of course, a necessary part of This constant monitoring enables them to identifydoing business, this narrow view of the accountants role problems early, such as cash-flow issues, cost overrunsneglects the broader benefits of year-round engagement. Tax or declining profitability in certain areas. Addressingplanning isnt just an annual task; its a continuous process that these concerns early, with the help of a knowledgeableshould evolve as a business grows and as new tax laws come accountant, can prevent significant financial distress ininto play. the future. For instance, an accountant can advise onConsider that tax lawsespecially in the construction industryare subject to change and can have significant implications how to best monitor project budgets or implementfor a firms cash flow. A major shift in the political landscape, more efficient cost-control systems to be able to tracksuch as the recent presidential election, can signal important progress and identify issues early, including out-of-changes in tax and financial regulations. This is a critical time scope work and potential change orders.to engage ones accountant to better understand the potential In addition, construction firms often face volatile cashimpact of new legislation or changes to existing laws that may flows due to the nature of project timelines, seasonalaffect operations, whether its adjustments to tax rates, fluctuations and client payment schedules. Having andepreciation rules or other business-specific deductions. accountant actively involved in reviewing the financesOne particularly pressing issue for many construction firms is can help project cash-flow needs more accurately inthe impending sunset of certain tax provisions, such as those order to make strategic decisions about reinvestmentrelated to bonus depreciation, which are scheduled to expire in or expansion.the coming years. By engaging with an accountant early on, a BEYOND THE BALANCE SHEETbusiness can plan ahead to take advantage of these provisions The role of an accountant extends far beyond justbefore they disappear. A proactive tax strategy can also financial statements or tax filings. By engaging onesminimize liabilities and avoid surprises during tax season. accountant regularly, a business can leverage theirAccountants are also trained to help identify areas where one expertise in a number of strategic areas, such asmight be overpaying in taxes, or where there are credits and financing, employee retention, and potential mergersdeductions not currently being utilized. This can include capital and acquisitions.expenditures, research and development credits, or strategiesrelated to tax-deferral methods.Continued on Page 75'