Over the last couple of years, businesses across all industries – especially contractors – have dealt with rising employee and human capital costs and rapidly increasing input costs. Although inflation data is now below 5% for April 2023 and projected to decrease slightly in May 2023, those figures are still above the norms of the previous two or three decades.
Electronic (ACH) payments are a convenient and often necessary means of conducting business with vendors. Unfortunately, while ACH transfers offer greater efficiency and liquidity as compared to traditional checks, they also bear increased vulnerability to fraud attempts (the proverbial double-edged sword). In our public accounting practice, we have seen small businesses targeted for ACH fraud with growing frequency and sophistication in recent months. As ACH fraud attempts intensify, so must our vigilance for detection and prevention.
In 2021, the FBI received 19,954 business email compromise (BEC) complaints with adjusted losses of nearly $2.4 billion, up from $1.8 billion in the prior year – a 33% increase!1 Many of these losses result from wire transfer fraud. Fraudsters have become more sophisticated, and their schemes have evolved to stay ahead of the preventative measures that are developed. Cybercriminals don’t discriminate – both small businesses and public companies are targets and victims of these schemes. In many cases, the wired funds are immediately converted to cryptocurrency by the recipient, making recovery virtually impossible.
Whenever a new tax-related law is passed, business owners are naturally inquisitive as to the impact it will have on their enterprise. The recently signed Inflation Reduction Act has a handful of tax provisions, but the aspect that is generating the most attention is the increase to the staffing and budget of the Internal Revenue Service (IRS).
Ask an Accountant: What Construction Contractors Need to Know About the New Lease Accounting Standard for 2022
After granting a yearlong delay due to COVID-19, non-public companies must adopt the new lease accounting guidelines that greatly expands the financial reporting requirements for leases.
Ask an Attorney: The Construction Industry Economic Forecast & Contractor Agreements: How Economics & Law Fit Hand-to-Glove
Earlier this year, economic forecasters throughout the construction industry weighed in with their assessment, analysis, and even projections for 2022. In February, ABC Keystone hosted Anirban Basu, ABC National’s Chief Economist, and possible secret agent, to give his industry outlook at the annual Economic Breakfast. His presentation not only reviewed and interpreted key metrics, but it also had implications for day-to-day business activities. As economics and law go hand-in-hand, the emerging economic landscape drives how contractors should negotiate their contracts and the types of terms they should include.