This past Monday, the Department of Labor’s (DOL’s) final rule on how to analyze whether a worker is classified as an employee or independent contractor under the Fair Labor Standards Act (FLSA) took effect.

Considering the growth of the gig economy, the number of people operating as independent contractors or freelance workers has skyrocketed. While this has opened opportunities to “be your own boss,” there has been growing concern about businesses misclassifying workers as contractors to gain an unfair competitive advantage and avoid the higher costs associated with actual employees (i.e., minimum wage, overtime pay, benefits, and other employment protections). The DOL final rule on classifying employees seeks to rectify the situation. It is more consistent with judicial precedent and more clearly delineates when a worker qualifies as an employee versus a contractor under the FLSA. Here are the highlights…

Who is subject to the rule?

Employers subject to the FLSA are impacted by this rule. So, it applies to private sector employers, as well as federal, state, and local government employers.

What does it entail?

The final rule rescinds the 2021 independent contractor rule and restores the multifactor analysis previously used by courts to determine an employee’s classification based on their relationship with an employer. The six factors include:

• Any opportunity for profit or loss a worker might have;
• The financial stake and nature of any resources a worker has invested in the work;
• The degree of permanence of the work relationship;
• The degree of control an employer has over the person’s work;
• Whether the work the person does is essential to the employer’s business;
• The worker’s skill and initiative.

No factor is weighted higher than another – the total circumstances of the employment relationship is considered. For more details about the six factors, as well as examples and FAQs, the DOL’s Small Entity Compliance Guide is a terrific resource. Access it by clicking here.

When does the final rule take effect?

March 11, 2024.

Where can I learn more?

• Click here for the Final Rule.
• Click here for DOL FAQs.
• Call the Wage and Hour Division’s (WHD) Division of Regulations, Legislation, and Interpretation at (202) 693-0406 if you have questions about the final rule.
• Contact your local WHD District Office with questions about employment classification of a work/group of workers.

Why should employers ensure compliance?

Failure to comply can result in having to pay unpaid wages owed to an employee, liquidated damages, civil penalties, and lawyers’ fees. In addition, fines may be levied by federal and state governments if misclassification occurs.

If you have questions or need assistance with employee classifications and Final Rule compliance, Visions Human Resource Services – an RBT CPAs affiliate – is available to help. Contact a client manager at info@VisionsHR.com or call 845-567-3978.

And, as always, if your organization needs any accounting, audit, tax, or advisory services, you can continue to count on RBT CPAs to do the job professionally, ethically, on-time and within budget. Give us a call to learn more.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

While there are several reasons for U.S. construction businesses to be cautiously optimistic about 2024, there are also a number of reasons to simply be cautious.

In the U.S. overall, there’s an expectation for some growth (but not as strong as last year), with a hope that inflation and interest rates will decrease. Wages are up and unemployment is hovering around 3.5% to 4%. Lending is tightening and consumer spending is slowing down. The likelihood of a recession is anyone’s guess, although it seems less likely than it was a year ago. The situation is fragile, for lack of a better word, considering escalating geopolitical tensions and the fact that we’re in a presidential election year.

It feels like we’re playing Jenga and while we’re doing a good job keeping the business environment balanced, all it will take is one false move and everything can tumble. Moving slow and steady is key.

When it comes to construction, the Associated General Contractors (AGC) and Sage annual Construction Outlook Survey Results released last month provide valuable insights to help guide your business strategy for the year ahead.

As I reviewed the results, I didn’t see any big surprises, and I think the assessment of opportunities and challenges are right on target, based on what we’re hearing from clients and seeing in the industry overall.

Results show 64% of respondents are worried about rising interest rates and financing costs; 62% are worried about a recession or economic slowdown. Costs in general are among the top concerns for 2024, with both labor costs and material costs on the rise. Rising costs, interest rates, and reduced funding resulted in over 70% of respondents experiencing project postponements or cancellations in 2023.

When it comes to labor, 69% of respondents plan on adding staff and 77% are having challenges filling open positions. Last year, many raised pay, enhanced benefits and contributions to benefit costs, and added or increased incentives. Considering rising wages across industries, construction companies are likely looking at having to do even more to attract and retain talent, while addressing growing concerns about safety due to workforce inexperience.

While a growing percentage of respondents are investing in technology like drones, AI, and modular construction, the majority still aren’t on board. Does this mean there are still a lot of opportunities for construction firms to address staffing challenges by using technology to work more efficiently and effectively?

A higher percentage of respondents, but still not a majority, are also continuing to invest in software for accounting, project management, document management, and estimates. Again, this may open opportunities to eliminate non-value-added activities while operating more effectively.

I do appreciate that survey results are also broken down by region and state, as it does highlight differences by geography. For example, when calculating the net percentage of respondents expecting the value of warehouse projects to be higher or lower, results show an anticipated 10% net increase nationally; an anticipated 10% net decrease in the Northeast; and a 29% net increase in New York.

Some other differences to note…based on survey results, NY staffing challenges appear to be slightly lower than the national average. While both national and New York results show the top response to supply-chain issues is to accelerate purchases after winning contracts, nationally the second most popular response is to turn to alternative suppliers but in New York respondents are more likely to have specified alternative materials or products.

When it comes to project postponements or cancellations, New York respondents appear to be facing more challenges than most:

• Nationally, 34% of respondents indicated no projects scheduled to start in 2023 or 2024 were postponed or canceled; in New York, the result drops to 24%.
• Nationally, 37% of respondents indicated projects postponed in 2023 were rescheduled; in New York that drops to 24%.
• Nationally, 36% of respondents indicated projects that were postponed or cancelled in 2023 were not rescheduled; that jumps to 45% of respondents in New York.

Interestingly, nationally, a greater percentage of respondents indicated owners postponed/cancelled projects slated to start in 2024 than in New York. If you’re a glass-half-full person, you could take this as things may be looking up in New York…maybe.

As 2024 unfolds, please remember the professionals at RBT CPAs are here for you. Please don’t hesitate to give us a call and find out why businesses across the Hudson Valley and New York have entrusted us with their accounting, tax, audit, and business advisory needs for over 50 years. Hint: We’re Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

The commercial real estate sector is approaching a critical juncture with approximately $400 billion in loans set to mature. This situation is further intensified by the persistence of high interest rates. As a commercial real estate owner, it is crucial to anticipate what’s next and take proactive steps to manage risks and leverage opportunities. Consider the following…

1. Determine how the maturation of loans will impact your financial status and plans. Depending on the terms of your loan, you may need to pay a significant amount when the loan matures. Discuss with your banker about your repayment options and any potential for refinancing.
2. Anticipate what is going to happen with interest rates. High rates may increase your repayments, leading to financial strain. Your banker should provide clarity on current rates, the bank’s forecast on how they might change, and how these changes could impact your loan repayment schedule.
3. In a high-interest environment, paying off a loan early can save considerable money. However, some loans come with prepayment penalties, making early repayment less beneficial. Ask your banker about the possibility of these penalties and consider this in your financial planning.
4. Explore refinancing. With impending loan maturities, it is prudent to lock in a new loan at a favorable rate before interest rates climb any higher. Refinancing can provide the much-needed capital for property improvements, debt consolidation, or to fund new investments. However, it is essential to conduct a thorough analysis of the potential savings against the costs of refinancing to determine the feasibility.
5. It’s an opportune time to review your property portfolio. Consider selling non-core assets and investing in properties with higher yields. While selling can be a tough decision, especially in a high-interest rate environment, the liquidity provided can help reduce the risk of default on maturing loans. It also allows you to reallocate resources to more profitable ventures.
6. Consider deleveraging. When interest rates are high, it becomes costly to service debt. Reducing the debt in your portfolio can increase your equity, making your investment less risky. It’s crucial to weigh the benefits of deleveraging against the potential returns from maintaining a higher debt level.
7. Building relationships with multiple lenders can provide additional financing options. Diversifying your lending relationships can provide flexibility in negotiating terms and may enhance your ability to secure financing at favorable rates.
8. Focus on improving property performance. High occupancy rates and rental income can increase the value of your property and its attractiveness to lenders. Investment in property improvements can attract quality tenants, ensuring a reliable income stream.

The maturing of $400 billion in loans amidst a high-interest rate environment presents both challenges and opportunities for commercial real estate owners. Timely refinancing, portfolio review, deleveraging, diversifying lending relationships, and enhancing property performance are strategic moves that can help navigate this landscape.

Remember, every financial decision has its risks and rewards. It is advisable to seek professional advice before making significant financial decisions. Proper planning and strategic action can help ensure the sustainability of your commercial real estate portfolio amidst these market conditions.

Should you have any questions, please don’t hesitate to contact your RBT CPAs client manager. Our experts are also available to help with your accounting, audit, tax, and business advisory needs throughout the year. Give us a call to learn more.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Creating winning project bids is a science onto itself. Do it right and you end up profitable and productive. The secret is to invest the time and attention to show the buyer why your business is the best for the job. In truth, that’s easier said than done, but there is some work you can complete before ever submitting one bid to promote your chance at success.

Define your business goals.

A commonly cited statistic asserts that your bidding process can be considered successful if you receive at least one job for every five bids submitted. As an accountant and a business advisor that feels random. To add structure, consider the big picture. What are your overall sales, profit, and cash flow goals for the year, quarter, and month? Can your answers guide your bidding activities, pointing to when you need to make more bids or set goals for improving your hit (win) rate?

Develop your brand.

A brand reflects your business’ identity or reputation. It’s what distinguishes your business from your competitors’, and it sums up the experience a client can expect when he/she awards you a job. Are you known for professionalism, quality, financial stability, safety, customer satisfaction, project management, environmental awareness, or something else? If so, you should be saying that, consistently, every time you submit a bid. If you need help, consider engaging a marketing firm or freelancer to summarize your brand and provide standard language you can use for bids (as well as marketing channels like your website, social media, and more).

Know your strengths and weaknesses.

Not every bidding opportunity is going to be a good fit. Consider creating a checklist – based on past work – to identify the types of projects that are worth your time and align with your business goals and outcomes. Similarly, a checklist of attributes to avoid can help you quickly decide whether it’s better for your business to forgo a bid.

Evaluate software, online tools, and services that can boost accuracy and productivity.

At the very least, an online search can help you find a variety of free construction bid proposal templates. If you’re looking for more, software and services are available to support the entire bidding process, cost estimations, work breakdowns, project management, proposal generation, takeoff accuracy, and more.

Prequalify subcontractors.

Since you should submit bids by the deadline, if not sooner, prequalifying subcontractors you may use on jobs can save you time and promote peace of mind that the people you’re engaging align with your brand, as well as your quality and performance standards. You may also review licenses and certificates of insurance to make sure the subcontractors have what you need when the time for a bid/job comes.

Expand your pipeline for learning about bids.

In addition to getting leads on projects from trade organizations, referrals, and suppliers, consider subscribing to a lead generation service. Evaluate which markets are served, client size, geography covered, success statistics, service options, and prices. Also look for features that would be of value to you – like getting an email when a new bid is opened.

By putting the time and effort in before ever making a bid, you are in a better position to choose and submit bids – and win projects – when the opportunity arises.

To free you up to focus on bids and all other aspects of running your business, please remember RBT CPAs is here to help with your accounting, tax, audit, or business advisory needs. Interested in learning more? Give us a call today.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) Improve Tracking of Workplace Injuries and Illnesses reporting rule takes effect January 1, 2024. As a result, more employers will be required to submit detailed data about workplace injuries and illnesses.

The final rule was issued July 21, 2023. It reverts from provisions adopted in 2019 largely to what was effect in 2016. OSHA is hoping this helps reduce workplace injuries and illnesses in high hazard industries. It will use the data for strategic outreach and enforcement. It also intends to make the data collected available online to the public.

According to the Department of Labor (DOL), “This will enable the agency to interact directly with these establishments, through enforcement and/or outreach activities, to address and abate the hazards and improve worker safety and health. These same data will also allow OSHA to better analyze injury trends related to specific industries, processes, or hazards.”

The DOL also asserts that by making injury and illness data public, potential customers, employees, and others will have more information to make decisions about health and safety at a particular establishment.

Under the final rule, once a year, establishments – meaning a physical work location, not a company as a whole – with:

• 100 or more employees in certain designated industries* must electronically submit information from OSHA Forms 300 and 301.
• 20 to 249 employees in certain designated industries* will continue to electronically submit information from 300A annual summary to OSHA.
• 250 or more employees, regardless of industry, are required to keep records under OSHA’s illness and injury regulation and electronically submit Form 300A information.

*Industries are defined in Appendix A and Appendix B in the Final Rule.

March 2 is the deadline for submitting prior year data. So, data from 2023 must be submitted by March 2, 2024. Covered establishments will submit data via OSHA’s Injury Tracking Application.

It’s important to note that the rule directly applies to OSHA states, but not state plans (although state plans are required to adopt similar requirements within six months of the Final Rule). New York does operate an OSHA-approved state plan, but it only covers state and local government workers. Private sector employers and their workers are covered by federal OSHA.

If you have any questions about the Final Rule or its implementation, it’s in your best interest to contact legal counsel. RBT CPAs is not a law firm; we specialize in accounting, tax, audit, and business advisory services. Interested in learning more? Give us a call today.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Whether you currently own commercial real estate or are considering whether to jump into the market, of the many pros and cons you evaluate, don’t forget to take a look at related tax and investment benefits. Here are a couple that stand out:

Depreciation deductions on income taxes.

As a physical asset that will wear down over time, CRE investors can deduct a defined amount from income taxes each year for depreciation. Residential buildings can be depreciated over 27.5 years, while commercial buildings can be depreciated over 39 years. So, if you buy a commercial building for let’s say $5 million, your income taxes can be reduced by $128,000 each year for depreciation.

If you want larger depreciation deductions over a shorter period of time, you can do that, too, by engaging an engineering firm to conduct a cost depreciation study to identify parts of the property that can be depreciated in less time.

Again, going back to the commercial building you buy for $5 million, let’s say the cost depreciation study identifies $1 million in parts that can be depreciated in 10 years rather than 39. You’ll be able to pay a $100,000 depreciation deduction each of the first 10 years you own the property. Between this portion of the deduction plus depreciation deductions for the rest of the property, for the first 10 years your depreciation deductions will equal about $202,000. That amount goes down to $102,000 for each of the remaining 29 years.

Bonus depreciation.

With the Tax Cuts and Jobs Act (TCJA) of 2017, there is bonus depreciation to qualified improvement property put in service before year-end. Up through 2022, the bonus depreciation was up to 100% of a property’s value the year the property was placed in service. The bonus depreciation is phasing out, dropping to 80% in 2023; 60% in 2024; 40% in 2025; 20% in 2026; and 0% in 2027.

1031 exchange.

This allows you to defer capital gains taxes if you exchange one property for a “like-kind” commercial property in a defined period of time. The new property must be worth the same or more than the first property. After the new property is sold, capital gains taxes are due in full (unless you want to do yet another 1031 exchange, which will defer those taxes even longer).

Diversification.

Diversification is a strategy investors take to manage risk and minimize losses. By diversifying or spreading investments across several different options (i.e., CDs, bonds, stocks, mutual funds, etc.), you hope that if one tanks the others will make up for it. Unlike traditional investment options which typically have a similar reaction during recessionary times, there is another one that may help stabilize a portfolio: CRE. While there are no guarantees against losses, diversifying into CRE may help minimize risk.

Inflation hedge.

One way to protect your investment against a decrease in the purchasing power of your money is to “hedge” against “inflation.” Typically, when inflation rises, so do property values and rents; in turn, real estate returns go up.

There are other deductions associated with CRE investments, including transportation costs, employee wages, professional fees, contractor costs, and more. If you take a business loan to buy a CRE, you may also be able to take a 30% deduction on taxable income for equipment, technology, building repairs and materials, and renovations.

To ensure you take advantage of all the deductions that may be available to you as a CRE owner, make sure to work with a tax professional, like the ones you’ll find at RBT CPAs. We believe we succeed when we help our clients succeed. Want to learn more? Give us a call.

NOTE: This article is for informational purposes only and should not be construed to be advice or direction. If you are interested in learning more about purchasing CRE as an investment, be sure to speak with a CRE realtor and attorney.

RBT CPAs is proud to say all of our work is prepared in the U.S.A. – we never offshore. As a result, you get peace of mind that your operation’s financial and confidential information is handled by full-time, local staff who have met our high standards for quality, ethics, and professionalism.

It’s always interesting for an accountant who specializes in the construction industry to deep dive into trending topics. I’ve come to learn that when you Google a research topic, the first five screens of search results paint one picture that almost feels like marketing to get a new trend to catch on. Moving further into search results and asking different questions usually uncover a flip side to stories that often challenge or raise questions about mainstream messaging. To be honest, this is the case when taking a deep dive look at what’s happening with prefab and modular construction.

I was surprised to learn prefab and modular construction have been around for quite some time. Some claim its roots were planted in the 1600s, while others say it really started to take off in the early 1900s when Sears started selling prefab homes. Fast forward to 2014 and we can see how far the industry has come when the first prefab hotel was built in New York City. Still, it’s not a new concept; it has been around for a while and is taking time to gain traction and momentum.

The continuing labor shortage, escalating climate issues, and a growing housing shortage provide solid reasons to explore how to do construction differently. Prefab and modular building seem to be finding its footing when it comes to multi-family housing, healthcare and education facilities, and more. While there’s no doubt prefab and modular construction will have its place, it’s hard to tell exactly how much of a role it will play in the future.

On the plus side, many sources point out that prefab and modular construction can lower costs, reduce project timelines, increase worker safety, deliver higher quality, reduce waste, and be more environmentally and climate-friendly. They also have a role to play when responding to crisis, like when additional hospital spaces were needed quickly as the COVID emergency ramped up. Plus, there’s an opportunity following severe weather or climate events like hurricanes or fires to help hasten rebuilding efforts at reasonable costs. Add the reduced noise, dust and neighborhood impact while constructing, plus the ability to use more newer materials put together in a controlled environment, and prefab and modular seem hard to beat.

Still, a number of questions remain. For example, the lack of standardization and regulations may increase costs and time associated with putting prefab and modular units together, pretty much eliminating any time or cost savings. There are extra steps involved in quality control, with pieces needing to be inspected both before and after transport, not to mention once the construction is done. Apparently, connecting utilities can present issues, as can the upfront coordination between all of the parties that need to be involved. Requirements to pay prevailing wage on public projects may automatically exclude prefab and modular options. Plus, last minute requests and changes can be difficult to accommodate.

Even in the face of these and other questions, prefab and modular building appear to have a growing role to play in the industry. When it comes to North America, Modular Building Institute’s 2023 Modular Construction Industry Annual Report’s executive summary notes permanent modular construction reached $12 billion in 2022 and accounted for 6.03% of new construction starts. According to Global Market Insights, the “Modular and prefabricated construction market size surpassed USD 147 billion in 2022 and is anticipated to register  6.5% CAGR  from 2023 to 2032.”

As you consider what prefab and modular may mean to your business and future plans, you can count on RBT CPAs to keep an eye on your accounting, tax, audit, and business advisory needs. Interested in learning more? Give us a call.

RBT CPAs is proud to say all of our work is prepared in the U.S.A. – we never offshore. As a result, you get peace of mind that your operation’s financial and confidential information is handled by full-time, local staff who have met our high standards for quality, ethics, and professionalism.

As you make summer plans for your business, consider adding ESG assessment, measurement, and management as a priority.

ESG stands for environmental, social and governance – three areas growing in importance to investors, project owners, lenders, customers, suppliers, regulators, employees, insurers, and communities. This October, the Security and Exchange Commission (SEC) is expected to issue rules to standardize how companies assess, measure, manage and disclose ESG related risks, including emissions resulting from assets not owned or controlled by a reporting organization. So, even if you aren’t subject to SEC rules, someone may be asking for your ESG measures for their own reporting purposes. Now is the time to prepare.

Construction is recognized as a key industry for driving ESG progress globally, especially since it uses over 30% of the world’s natural resources, and is responsible for 30% to 40% of greenhouse gas emissions, and 40% of energy use. (Linstroth, Tommy. Growing Demand for ESG Reporting in Construction. November 4, 2022. Forconstructionpros.com.)

Investors want information about it. Clients are looking for it. Lenders and credit rating agencies may consider it and it’s becoming a growing part of insurance and regulatory conversations. Communities judge by it, as do employees and recruits. It can impact business valuations and capital raising, and increase interest from larger organizations looking to grow through mergers and acquisitions.

Some say it’s about risk management, while others assert the focus is environmental and resiliency. There are those that say it’s about current and future performance and sustainability. It’s broad, measured and defined in multiple ways encompassing hundreds of data points.  According to an issue of Mckinsey Quarterly published in August of 2022, more than 90% of S&P companies publish some form of ESG report, as do 70% of Russell 1000 companies. Progress is being reported using different frameworks like the  Stakeholder Capitalism Metrics, the United Nation’s Sustainable Development Goals, MSCI ESG Focus Indexes Methodology, SASB Standards, and more.

Perhaps the best explanation we came across was on Groundbreakcarolinas.com, which reported: “Many project owners and financiers are now requiring construction companies to report on ESG measures because activities completed by contractors are considered part of the owner’s value chain and must therefore be incorporated into their own ESG reporting. In addition, ESG aspects of projects are increasingly becoming part of the project financing evaluation process. While ESG reporting is growing in significance, contractors are still learning how to track, measure and report ESG metrics across their organization.” (Gallagher, Brian and Palys, Michelle. What Construction Firms Need to Know About ESG. January 23, 2023. Groundbreakcarolinas.com.)

Overall, it promotes environmental sustainability, social responsibility, and good governance which can enhance reputation, mitigate risks, ensure regulatory compliance, and create value for all stakeholders. To learn more, check out:

• com’s ESG in the Construction Industry (Adoor, Craig and Ryan, Lynn. February 15, 2023.)
• An ESG framework for North American Building by Green Builder Media.
• Contractor’s Commitment. (Melton, Paula. “Contractors Pledge Greener Construction in New Commitment.” com.)

If you need time to focus on ESG plans and other work, remember, you can count on RBT CPAs to handle your accounting, tax, audit, and business advisory needs. We believe we succeed when we help our clients succeed. To learn more, give us a call today.

RBT CPAs does not outsource work to any other country. All of our work is prepared in the U.S.A. 

The National Equipment Register (NER) places the annual cost of losses due to equipment theft at up to $300 million for residential construction sites and $1 billion for commercial sites, with a $30,000 average price tag per theft. Beyond the actual cost, equipment theft can significantly add to the challenge of completing a project on time and in budget; hurt your reputation; drive up insurance; tie up cash and credit renting or buying replacements; and cause you to miss out on future business opportunities. While there are no guarantees, having a comprehensive anti-theft plan can turn the odds in your favor.

According to TheRepublic.com, “The people who do the stealing range from individuals committing small-time, spur-of-the-moment thefts to organized crews who go from state to state, hitting construction sites and then blowing town.” Top heavy equipment thefts according to Tenna.com include skid steers; wheeled and tracked loaders; towables; backhoes; tractors; wheel loaders; utility vehicles; UTVs; excavators; forklifts; bulldozers; rollers; generators; welders; and compressors.

Especially if the work site is in a remote location or the job timeframe includes extended periods of inactivity (i.e., a long holiday weekend), a comprehensive strategy can help reduce the chance of equipment theft. Here are some tips to consider:

• Create a job site security plan and assign security-related responsibilities. Have your team spend time at the start of a project identifying and addressing potential security weaknesses.
• Prequalify contractors before hiring them. According to LevelSet, most theft happens internally and subcontractors can easily identify your weak spots.
• Have a system to ensure only approved personnel enter the work site (i.e., photo ID badges).
• “Mark your equipment with an identification system, such as a driver’s license number (state initials, number, followed by DL). This is the only traceable number in all 50 states. Put numbers in two spots: one that’s obvious and one that’s hidden.” (Source: Great American Insurance Group.)
• Take inventory. For all equipment and tools that will be used at a site, create an inventory including a photo, name, description, serial number/VIN, date of purchase, worksite, and who is approved to use it.
• Invest in equipment-related technology. GPS asset tracking hardware, operating systems, video telematics (with forward and rear-looking dash cams), and geolocation technology as a standard feature on new equipment (OEMs are increasingly offering it) can help you see where equipment is, get alerts when it turns on or moves, and more.
• Register heavy equipment with the National Equipment Register (NER), an organization that manages a database with detailed information about equipment ownership and potential matches with theft reports to help facilitate information sharing with insurers, equipment owners, and law enforcement.
• For smaller equipment, create a storage area. Assign and label a space for each piece so you can quickly and easily see when something is missing.
• Disable or make large equipment difficult to remove from a site. ConExpoConAgg suggests removing fuses and circuit breakers; and installing fuel shut-off equipment, wheel locks, battery switches, ignition locks and other deactivation devices. Also park equipment in a wagon-train circle and place easier to move pieces like generators in the middle.
• Create a check-in/check-out procedure. Have workers sign out equipment as they use it and sign it back in when finished.
• Set a policy to report any theft or vandalism to management immediately, so there’s a greater chance of recovery (which is said to happen only 25% of the time).
• Adopt additional security measures. Security cameras, fencing and access control systems, lighting and security guards help deter theft and can provide proof should a theft occur. Engaging local law enforcement and crime stopper groups to report anything suspicious outside of normal hours of operation can also help.
• Create an end of day security checklist. Is all equipment properly locked away/secured? Are lights, motion sensors, and security equipment turned on and working? Is the perimeter fence solid and secured? Have all entryway locks been closed and double-checked?
• Train employees and contractors on your equipment management plan and security protocols.

While developing a plan to keep an eye on your worksite equipment and machinery, you can count on RBT CPAs to keep an eye on your accounting, tax, audit, and business advisory needs. Interested in learning more? Give us a call.

RBT CPAs is proud to say all of our work is prepared in the U.S.A. – we never offshore. As a result, you get peace of mind that your operation’s financial and confidential information is handled by full-time, local staff who have met our high standards for quality, ethics, and professionalism.