We're smack in the middle of another busy tax season, but you might already be wondering how you can do a better job of tax planning for your construction company next year. Ian Grimbleby - Principal, CPA, and Construction Team Leader - offers his top tips.
Ian Grimbleby, Principal, CPA and Construction Team Lead
It's the most common question Grimbleby hears: "Should I buy or lease a new truck for the business?" Grimbleby recommends carefully tracking the miles, gas, and maintenance per vehicle. Knowing those numbers will make it easier to choose between keeping your old trucks vs. purchasing new ones. Sometimes repair expenses are more expensive than a new purchase, Grimbleby says.
Curious about the second most common question Grimbleby receives? It is a follow-up question about vehicles! "So, if I decide to buy a vehicle, how much can I 'write-off' this year?" Vehicles have very specific tax depreciation treatments, which can be complicated to interpret and worth giving us a call to review.
Saving for retirement is important to most people, and is a common discussion point with our clients. Retirement plans, such as a 401(k) plan, are a great way to reduce income tax now and save for the future; however, knowing what plan type and options to pick for your business can be complicated. In the construction industry, it gets even more complicated if you have government contracts with prevailing wages. We would be pleased to discuss your options.
If you're using a white board or an Excel spreadsheet, you're in grave danger. Those antiquated methods are not a recipe for success in this day and age. The first step to automating the books is to use a tool such as QuickBooks or industry specific accounting software.
"Every company is unique, however, as a general rule, once a construction company reaches the $10 million annual revenue mark, it is time to invest in specialized construction software tools," Grimbleby says. "The software will provide project management, profitability per project, benchmarking, reporting and tax preparation assistance."
Grimbleby also notes that "$10m in revenue is also the point when you can no longer be taxed based on 'cash' books." Several highly regarded construction software tools to look into are Dexter + Chaney, Jonas, Foundation Software, Sage and Viewpoint.
Please contact Ian Grimbleby and the Construction Team to learn more tips and recommendations for implementing savvy tax preparation tips into your business practices.
If you're a bookkeeper or small business owner, chances are that your familiarity with QuickBooks is quite strong! QuickBooks is an accounting software tool that helps with tax preparation assistance, payroll, inventory, profitability reports, and many other bookkeeping services.
To help our clients navigate QuickBooks, our Core Accounting Services Team began hosting QuickBooks seminars for business owners and bookkeepers towards the end of 2014, with plans to continue monthly through 2015. The seminar curriculum builds from month to month and will cover functionality of the software. Our "hands-on" approach has been met with appreciation by our clients.
Linda Bossard, Experienced Senior Associate, USTCP, expressed "many members of our team earned certification as QuickbookPro Advisors, so we're looking to share our knowledge instead of simply fixing routine mistakes. We hope these seminars will help our clients be more efficient and confident with their Quickbooks skills."
Jeff became a principal of the firm in 2010. His specialty is tax, and he leads the firm's agribusiness industry team.
Jeff is a Modesto native, and grew up in a local farming family. He has an MBA and a Masters in Taxation degree, and is a CPA. Jeff enjoys “being able to explain a concept or communicate information that helps a client, and being able to learn from the experience of clients who are very successful at what they do.”
When he’s not helping clients, Jeff's focus is on spending time with his wife and three daughters. If it’s June, he’s outdoors—probably gardening, grilling, or hiking in the High Sierras. In October, you’ll find him spending time with family and still spending time outside if the weather is nice. But in January … where else would he be but in the office? “It’s tax season!”
Jeff’s favorite number is 2000. “For the year that I got married, and also started my first public accounting job.”