Every industry has its special characteristics, but the construction industry is truly unique. Because of its susceptibility to business cycles, special income tax problems, financial reporting, bonding and financing needs, special construction accounting and tax consulting knowledge is required to serve construction companies like yours.
You need financial professionals who can apply their knowledge of the construction industry to your problems. In addition to the traditional tax, audit and litigation services provided by HORNE, we help construction industry clients with services specific to their needs including:
Total Job Cost Audits
Proper job costing is critical to the measurement and reporting of contracts. Job cost audits can be performed for a variety of reasons. Whether the audit is performed as part of a required contract stipulation or the contractor wishes to improve its job costing process and reliability, HORNE can provide timely, accurate information to meet these needs.
Analysis of Contract Cost Components and Burden
HORNE provides thorough analysis and interpretation of your contract cost components. We'll work with you to determine the adequacy of your labor and equipment burden rates and make suggestions for your project and overall cost and rate strategy.
Preparation, Compliance and Consulting
HORNE provides timely tax planning, tax compliance filings, and tax consulting to meet your needs. Having the right answer, at the right time, gives you a competitive and strategic advantage when making business decisions. We work to provide the piece of mind you are looking for as we assist you in navigating through the maze of ever changing legislation.
State and Local Tax
HORNE is focused on assisting contractors in navigating through the multi-state complexities whether it is sales and use tax, income and franchise, or abandoned unclaimed property. While we often work with companies on a prospect basis, providing assistance during state tax audits is another value added service we provide to assist clients in negotiating and resolving complex issues.
HORNE uses our experience in the construction industry to assist engineering firms and government contractors through services such as indirect cost rate audits and Federal Acquisition Register ("FAR") compliance. In addition, HORNE is able to provide a variety of services that include internal control consulting and evaluation, job cost analysis, and compiling overhead schedules.
The experienced professionals at HORNE assist in developing an estate and succession plan that will not only minimize the estate tax burden, but will provide our clients with significant control over their assets and business. Succession plans developed by HORNE professionals can also be vital in obtaining certain loans and surety bonds critical in financing a project or a construction contract.
Study and 179D
A cost segregation study is a process of identifying personal property that would typically be depreciated over 39 years as part of a building and reclassifying these assets into class lives of five, seven or 15 years. Allowing for accelerated depreciation expense, a reduction in income taxes, and enhanced cash flow to you, owners of commercial real estate can recover depreciation deductions that were warranted, but not taken, in previously filed tax returns. Internal Revenue Code Section 179D provides generous tax benefits for the installation of certain qualified energy-efficient commercial building components. Instead of depreciating them over a period of years, the cost of qualified components can be deducted in the year placed in service.
There are many choices of entities available to businesses. Most of these choices have advantages, in the right situation. HORNE helps you in the decision making process of entity selection. These decisions can enhance your internal procedures as well as your long term profitability.
Financial statements consist of a balance sheet, income statement and cash flow statement. HORNE uses financial statements as a true performance measurement. They are critical to the tax planning process and are necessary in order to buy, sell or borrow money.
Years of experience in the construction industry allows HORNE construction team members to serve as a trusted advisor in areas of your business from procedural implementation to organizational structure. Compensation and benefit programs, general operating procedures, software consultation, financial projections and forecasts, cash flow and budgeting assistance are all part of HORNE's scope of services.
In a difficult economy, bonding companies are asking difficult questions. HORNE's team of construction accounting advisors can help you not only answer these questions, but have a clear plan to obtain the bond capacity you need to grow your company and accomplish your long-term goals. We'll also help you understand the documentation requirements necessary to meet the needs of sureties and underwriters.
HORNE assists clients with their business valuation needs in both litigation and non-litigation settings. Non-litigation engagements include buy/sell agreements and business planning. In litigation engagements, we focus on damage determination and shareholder disputes with the experience to provide expert witness testimony if needed.
HORNE's team of fraud, forensic and litigation consultants offer comprehensive fraud examinations, complex valuation issues and litigation engagements. Expert witness testimony is often provided in our client engagements.