Listen in as Mike Merrill and CICPAC Executive Director Kathleen Baldwin discuss the implications of the new lease accounting standard, ASC-842, on contractors' financial statements and business operations.

ASC-842 now requires companies to record the financial impact of their leases on their balance sheets. Baldwin details how this standard affects metrics like working capital, debt covenants and bonding capacity. The conversation underscores the importance of proactive communication with sureties and banks to manage these changes effectively. This episode provides actionable insights for contractors looking to stay compliant and financially sound under the new regulations.

Key Takeaways
• Implement ASC-842 by ensuring most leases are included on balance sheets, which impacts financial statements and operational decisions.
• Assess how changes to lease accounting affect working capital, influencing a contractor's bonding capacity and ability to secure future projects.
• Reevaluate debt covenants under ASC-842 to maintain compliance with lenders, as new lease liabilities may alter key financial ratios.
• Adopt lease management software, such as LeaseCrunch, to automate lease data management, enhancing compliance and reducing manual errors.
• Engage in proactive financial planning by discussing ASC-842 implications with sureties and lenders early, minimizing the risk of financial statement surprises.

This episode of the Mobile Workforce Podcast features a conversation between Mike Merrill and CICPAC Executive Director Kathleen Baldwin. Tune in to hear as they delve into how construction companies can manage travel expenses more efficiently, focusing on the benefits of accountable plans and the role of technology in streamlining expense reporting. This discussion provides practical insights for construction firms looking to improve their financial management and compliance with tax regulations.

Key Takeaways

• Clearly differentiate between accountable and unaccountable plans, focusing on the associated tax implications.
• Leverage technology to automate expense reporting systems, simplifying the documentation of travel expenses for construction companies.
• Navigate multi-state compliance issues by addressing tax regulations and deductions for employees working in different regions.
• Optimize tax deductions by strategically categorizing and documenting travel-related costs to maximize deductible expenses.
• Utilize CICPAC resources and guides to stay informed on tax planning and support for construction firms.

In this episode of the Mobile Workforce Podcast, host Mike Merrill speaks with Rob Remington, a construction lawyer with over 30 years of experience in the field. They discuss the evolving landscape of the construction industry, particularly as it shapes contract management, risk mitigation and the use of technology like project management software and AI.

This conversation is vital for contractors looking to protect their bottom lines and improve operational efficiency in a fast-changing market.

Key Takeaways:

• Implement effective risk management strategies to protect profit margins and avoid scope creep.
• Ensure thorough understanding of contract terms to prevent costly mistakes and disputes.
• Utilize technology tools like FOUNDATION® and AI to streamline project management and enhance communication.
• Proactively enforce lien rights and follow dispute resolution processes to secure financial success.
• Address challenges in the supply chain, labor shortages and inflation to manage costs effectively in both private and public projects.