D&M Construction Industry Newsletter

March 2025

Robert C. Reeves

CPA, CFE

Audit Partner

Featured Article From Our Experts

Common Construction Accounting Risks and How They Can Be Prevented

The construction industry has experienced significant post-pandemic growth, which has presented opportunities and challenges for businesses in this dynamic environment. It also has introduced several financial risks that, if overlooked, could negatively impact job performance and profitability. In this article, I will review common construction accounting risks and best practices to help mitigate them.

A Review of Inventory Accounting for Construction Companies

As construction companies expand, many decide to maintain inventories. Maybe yours already does. The method chosen for inventory accounting can significantly impact taxable income and financial reporting. This article reviews the key considerations in selecting an inventory accounting method, particularly focusing on the tax implications of first-in, first-out (FIFO) and last-in, first-out (LIFO).

The Latest on Occupational Fraud in the Construction Industry

Despite efforts to improve its reputation, the construction industry remains highly vulnerable to occupational fraud. Are your internal controls strong enough to withstand the many forms of occupational fraud? This article breaks down the top fraud risks facing contractors. It outlines practical, proven strategies to detect and prevent financial losses, such as stronger internal controls, fraud hotlines, and surprise audits.

How Can Contractors Use Wearable Technology?

The construction industry is embracing wearable technology to enhance safety, boost productivity and reduce costly mistakes. From smart helmets that detect fatigue to AR glasses that improve training and precision, these hands-free, internet-connected devices are transforming job sites. This article explores how you can leverage wearables to help your business stay competitive in an evolving industry.

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About Dannible & McKee, LLP

Dannible & McKee, LLP is a leading CPA firm that has been providing audit, tax, accounting and financial management consulting services to clients nationwide since 1978. Known for our technical expertise and deep industry experience, we are committed to delivering high-quality service tailored to our clients' needs. As trusted advisors to the construction industry, we are highly respected among construction leaders and actively engaged with many organizations that shape the sector. We stand out from our competition by conducting one-on-one, year-end planning meetings to review your operations and plan for income taxes, banking and bonding concerns. With a comprehensive understanding of all aspects of construction, we help businesses navigate daily operational challenges, maximize cash flow and develop long-term strategies for sustained success.

OFFICE LOCATIONS:

DM Financial Plaza, 221 South Warren Street, Syracuse, NY 13202

213 North Street, Suite 101, Auburn, NY 13021

200 Harborside Drive, Suite 201, Schenectady, NY 12305

220 Stage Road, Vestal, NY 13850

3001 N. Rocky Point Drive, Suite 214, Tampa, FL 33607

To learn more about Dannible & McKee, visit us at www.dmcpas.com.