Industries
Every industry has its own tax questions, its own accounting pressure points and its own ways money goes missing. These are the ones we know well.
Contractors live and die by job costing. Revenue recognition on long-term contracts, retainage, change orders and a work-in-progress schedule all have to tie to the books, and the tax accounting method for contracts is a choice worth revisiting as you grow. Materials and labor that move between job sites are also where theft and padded payroll hide.
Real estate returns turn on depreciation, and cost segregation can change the timing of deductions on a building. Property managers also hold other people’s money: owner funds and security deposits that must be reconciled and kept separate. Maintenance and vendor billing is a common place for inflated or fictitious invoices.
Firms that sell time need clean work-in-progress and unbilled tracking, and partner or owner compensation has real tax consequences. Remote staff can create filing obligations in states you have never thought of. Expense reimbursements and firm credit cards are the usual weak points.
Practices collect from patients, insurers and financing companies, and every stream needs to reconcile to deposits. The front desk handles cash and co-pays, which makes collections a known fraud risk. Entity structure and owner compensation matter as a practice adds providers or locations.
Thin margins leave little room for error in food and labor cost. Point-of-sale voids, comps and discounts are the classic channel for skimming, and tip reporting has its own payroll and tax rules. Daily sales should reconcile to deposits, every day.
Inventory drives both the balance sheet and the tax return, so costing methods and physical counts need to be right. Selling into many states raises sales tax and income tax nexus questions. Inventory shrinkage and vendor kickbacks in purchasing are the risks to watch.
Nonprofits answer to donors, grantors and the public through Form 990, and restricted funds and grants must be tracked separately from general operations. Small finance teams often rely on one trusted person, which makes segregation of duties the most important control a board can insist on.
The fundamentals carry across. Tell us about your business and we’ll tell you honestly whether we’re a fit.