As the list below is by no means all-inclusive, please feel free to inquire about a service if you do not see it listed. If it is not a service we provide, we would be more than happy to refer you to a qualified professional.
Audits, Reviews, and Compilations
Professionals servicing the construction industry need a good understanding of the industry to truly be a service to their clients. K&S has consulted with surety bond producers and insurance agents to find out what they would like to see from construction contractors financial reporting presentations. On the basis of their input and our experience, we have developed K&S Contractor, Inc., which is a format that is accepted by the sureties on a national basis. The report includes barometers that can measure success and it is also an instrument that will assist our clients to "get back to the basics", to become more profitable and efficient.
When we perform an audit, review, or compilation service, we take a business advisor approach rather than being "a necessary evil" that the accounting industry is often referred to as. We always document and communicate areas of potential improvement while performing our engagements.
Our fees for the engagements are on a not-to-exceed basis. If we blow the estimate, we have to live with it. We view our industry as being no different than the construction industry. However, if we are more efficient than what we projected, our client is the beneficiary and we will only charge that client on a time and material basis at our standard billing rates. We also do not charge for travel time and only ask for reimbursement for our expenses.
Tax Planning & Preparation
Tax planning and preparation form a winning combination for our successful individual and business clients. Whether you are an individual or a multi-tiered partnership, our experienced staff can develop tax strategies that take advantage of new tax laws and legislation.
Accounting Software Selection
K&S has developed a methodology that is respected by contractors and software vendors within the industry. Our full scale approach is performed in eight phases. Depending on certain characteristics and the amount of preliminary work performed by the client, modifications to these eight phases would be appropriate. Our generic outline of the eight phases is included in "A Guide For A System Selection Engagement". The eight phases are as follows:
- Review of the client's existing system - Identification of user requirements and the development of the request for proposal - Vendor analysis and package selection - Contract negotiations - Implementation planning - Compilation - Implementation - Post implementation review
These phases require interviews, checklists, case studies and computer models designed specifically for the construction industry. In order to monitor the implementation, the phase we feel is critical to the process, we will use a scheduling software in order to monitor progress and organize the resource pool to keep people accountable, keep their moral high, and convert on a timely basis instead on having a long drawn out process. These tools and our approach focus on the buyer's needs rather than the seller's strengths which dictates success with an engagement of this type.
Businesses can be valued many different ways but the key is to perform the task in a logical and methodical manner. K&S determines the method or methods used based on the characteristics of the business that we are valuing, not on "rules of thumbs" that experts tend to rely on much too heavily. Because we are actively involved in the industry, we have a wealth of resources available to compare the estimated value of a business compared to similar businesses in their industries.
Both of the partners at K&S have had extensive public and private experience on both the plaintiff and defense side of construction litigation claims. We have discussed and developed strategies with client counsel and have applied those strategies within our work product. Depending on the situation, we are prepared and have worked in adverse conditions in order to gather the facts and support our case. We have also consulted clients on documentation procedures that are used in the daily reporting of the performance of a job. These procedures will make preparing or defending a claim much easier when job disputes occur. In cases that were settled, K&S representatives have participated as expert witnesses.
Payroll Compliance Reporting
K&S provides services for both Federal and state payroll reporting. We prepare quarterly and annual payroll reports including 941, state unemployment, 940, state withholding, W-2s, 1099s, etc.
Accounting Systems Training
Construction contractors in many cases have numerous internal reporting needs on a day to day basis. We can assist contractors in converting from manual or existing computer reporting systems to more sophisticated systems. Often times we find clients who have made substantial investments in computers and software but do not get optimum performance out of those systems because nobody has been trained to use the systems as they were intended.
In other cases, clients are forced to nearly "reinvent the wheel" each time there is a financial reporting need. With the proper training, a client's accounting systems can work for the client, rather than the client reworking the system over and over again.
The overall reasons for performing an operation review are many such as to increase efficiencies and effectiveness of personnel, of operating facilities, of field site management, of administrative procedures, and promote better utilization of the company's capital assets. Initially we will meet with upper management to understand the concerns or outcomes desired from current operations. On the basis of that meeting, we will develop a schedule that will coordinate all of the interviews and areas of testing of our client's business.
During our fieldwork phase, we will interview department heads and other key employees to determine the organizational structure of the business unit, employee responsibilities, data flow and controls, and communication flow. We will also perform independent testing to support representations made by company personnel or support conclusions arrived at from our observations. Concentration of our efforts will be performed in four distinct areas:
- the office - the field - the estimating department - project management
Depending on the engagement, our findings can either be presented in a report or in an oral presentation. We will attempt to identify with each recommendation the impact it will have on current operations.