The Construction Financial Management Association (CFMA) is a nonprofit organization dedicated to serving the educational needs of today’s construction financial professionals. On June 25, 2018, Todd Feuerman and Bryan Porter, Directors and leaders of Ellin & Tucker’s Construction Services Group, co-presented at CFMA’s Annual Conference and Exhibition in Miami, Florida. As CFMA’s signature event, the conference brings together more than 1,000 construction-centric professionals and business owners to network and share best practice ideas from those experiencing successes and facing challenges. Attending and presenting at the conference provides insight into what construction industry executives face on a daily basis. Keeping a pulse on these conversations brings a deeper understanding of the business, enabling leaders like Todd and Bryan to better serve clients and colleagues.
Their session, The Power of Planning: Preparing and Communicating Year-End Financial Results, educated business owners, chief financial officers and financial professionals on how to best approach banking and surety partners when sharing financial results. Whether a particular company is having a good year or challenging year, communicating both qualitative and quantitative aspects of how the company is responding to challenges in the overall marketplace and the strategy to compete today is crucial when providing financial partners with a complete and accurate view of the company.
Areas of focus included:
- Understanding how the current construction marketplace impacts construction companies
- Determining the best entity structure and how to respond to the impact of the Tax Cuts and Jobs Act
- Gaining an understanding of how banks and surety firms underwrite construction companies
- Understanding how financial partners view the company’s balance sheet and income statement
- Understanding how to structure the company’s balance sheet and income statement to maximize bank and surety capacity
- Determining the impact of revenue recognition and lease accounting reporting standards on future financial reporting
- Developing meaningful benchmarking to compare financial results to industry averages
- The importance of developing a succession plan that can be communicated to the financial partners
- Creating a clear and concise financial package the accompanies traditional financial reporting
The presentation focused on encouraging attendees to think outside the box when it comes to communicating financial results. The numbers are crucial but equally important is how external and internal factors influence those numbers. The current construction market, tax law changes, current political issues and succession planning will all have some level of impact on the numbers. Giving financial partners a comfort level that business owners and executive teams understand these issues and have a plan to navigate challenges while capitalizing on completive advantageous will only enhance the company’s reputation with financial partners.
About Ellin & Tucker
Founded in 1946, Ellin & Tucker (www.ellinandtucker.com) is a leading CPA firm headquartered in Baltimore, Md. that specializes in accounting, auditing, consulting, forensics and valuation and tax services. As the fifth largest accounting firm in Greater Baltimore, Ellin & Tucker employs more than 120 people in offices in Baltimore City and Washington D.C. and serves national and international clients through its affiliation with DFK International/USA, a top 10 international association of independent, full-service accounting firms and business advisors in major geographic and economic centers throughout the U.S. and around the world.