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The Mobile Workforce PodcastAuthor: By FOUNDATION Software
The Mobile Workforce Podcast is centered around conversations with experts who have been where you are and have made it to the other side. Each week, our trailblazing guests share their experiences to inspire change, challenge the status quo and share what it takes to travel the road to profitability while managing a remote workforce. If you are looking to improve your operational efficiency and champion processes that maximize profit, these conversations will lead you and your team to the cutting edge. Brought to you by Foundation Software Language: en Genres: Business, Education, How To, Management Contact email: Get it Feed URL: Get it iTunes ID: Get it |
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182. Navigating ASC-842: What Construction CPAs Need to Know
Episode 182
Wednesday, 20 November, 2024
Listen in as Mike Merrill and CICPAC Executive Director Kathleen Baldwin discuss the implications of the new lease accounting standard, ASC-842, on contractors' financial statements and business operations. ASC-842 now requires companies to record the financial impact of their leases on their balance sheets. Baldwin details how this standard affects metrics like working capital, debt covenants and bonding capacity. The conversation underscores the importance of proactive communication with sureties and banks to manage these changes effectively. This episode provides actionable insights for contractors looking to stay compliant and financially sound under the new regulations. Key Takeaways • Implement ASC-842 by ensuring most leases are included on balance sheets, which impacts financial statements and operational decisions. • Assess how changes to lease accounting affect working capital, influencing a contractor's bonding capacity and ability to secure future projects. • Reevaluate debt covenants under ASC-842 to maintain compliance with lenders, as new lease liabilities may alter key financial ratios. • Adopt lease management software, such as LeaseCrunch, to automate lease data management, enhancing compliance and reducing manual errors. • Engage in proactive financial planning by discussing ASC-842 implications with sureties and lenders early, minimizing the risk of financial statement surprises.
