Sax LLP Publishes Explanation Of New Construction Industry Financial Standards
Leading accounting, tax, and advisory firm explains how industry-specific software can help construction companies adapt to changes
August 25, 2017 ( datsyn.com) – Sax LLP, a multi-disciplinary accounting firm serving both individuals and organizations from its offices in New Jersey and New York City, has published information to its website, which is listed below, relevant to businesses in the construction industry.
The construction industry update from Sax LLP explains several new financial standards that may affect construction businesses in the New York/New Jersey area. A primary focus of the explanatory article is how industry-specific software can help these construction companies adapt to the ever-changing regulations.
Sax’s information begins by acknowledging that the construction industry’s financial standard changes are particularly complex due to the difficult nature of the industry itself. “The construction industry is one of the riskiest industries to operate in,” writes the accounting firm. Sax goes on to add, “You can also say that the construction industry is unique given the constant demand for real-time data, cash-flow emphasis, specific required reporting, and an accounting method based on estimates.”
The specific new standard Sax discusses is known as the Revenue Recognition Standard. According to Sax, the standard essentially outlines new guidelines for the construction industry’s financial reporting and details special procedures for how to deal with the revenue uncertainty involved in the industry. The new standard underscores the importance of effective, organized bookkeeping practices: “For contracts, it is now more important than ever to have proper accounting software in place to increase productivity and efficiency, and ensure appropriate and accurate reporting of financial data.”
After mentioning the importance of accounting software for the construction industry, the information on the Revenue Recognition Standard available on Sax’s website also details the factors businesses need to consider when selecting new software. The factors include the complexity of a particular contracting business, the amount of real-time access needed, and the necessity of add-ons like automated invoice processing. Sax advises focusing on the quality of an accounting software product and highlights the importance of consulting with an accountant to ensure the software will be well-suited for the unique needs of each construction company. More information can be found at plus.google.com/b/115802868791237517790/115802868791237517790?hl
With over 60 years of experience, Sax LLP provides a full range of accounting, tax, and advisory services for its clients. Reviews can be seen at www.google.com/maps/place/Sax+LLPemail@example.com,-74.1904212,17z/data=!3m1!4b1!4m5!3m4!1s0x0:0x20a1f6dd214631d6!8m2!3d40.871714!4d-74.1882325?hl=en