Construction Accounting & Taxation published an article by Partner Rob Mercado and Senior Manager Christopher Sisk, suggesting questions every contractor should ask their CPA prior to year-end.
Construction Accounting & Taxation
Understanding the inputs and accounts that affect the working capital ratio is critical and must be managed with laser focus at year-end. Working capital should be a minimum of 10 percent of a company’s top line revenue. If it is below that percentage, it can directly affect the amount of work a contractor can pursue in the following year.