Why?

:(>>>

Sorry to hear. That's not what we work for, fer shur.

Why do you think this has happened?

We started slow, but things have taken off dramatically. Sales are up 25%, and since our Break-even point is at about 50%, the bottom line has really done well.>>>

im new to this board im a roofing contractor in new jersey sales are down this year and prices are up the big problem is there are roofers who have cut there prices from last year just to keep money comming in i think this winter there will be a big shake>>>

Here in baton Rouge the numbers plummeted after the storms due to the volume of roofers. Now that many of them have left for Houston they are returning to normal....slowly. Welcome Ron.>>>

House Of Pain wrote: [quote]It's all an illusion. We use the cash accounting method and I've agreed to hold paper on several large projects. Additionally, I increased my salary to eliminate the profit. In these tough economic times, I wouldn'>>>

House Of Pain wrote: [quote]It's all an illusion. We use the cash accounting method and I've agreed to hold paper on several large projects. Additionally, I increased my salary to eliminate the profit. In these tough economic times, I wouldn'>>>

I like that kind of strategy myself. Only thing I would be leery of is deviating so substantially from year over year numbers that I brought on an audit. Don't want that hassle. In my most paranoid frame of mind I imagine them sitting around in a staf>>>

Our Volume is down but we had several really large projects. Gross is probably around normal but profits are much higher than usual. Only problem is we just ran into a wall due to several accounts pulling back from commitments as a result of corps tight>>>

That makes sense to me, HOP. While we're on the subject, you mentioned paying taxes as you go, not "not paying them." The IRS folks got it in their heads a few years ago that cash-basis accounting construction companies were unfairly adjusting their>>>

Egg,

I think the morons were dreaming, quite correctly in this case, that with cash-basis accounting it is easier to manipulate profits from an exceptional year where a higher tax bracket may be achieved, into a more average year, thereby actually enabli>>>

rotfl! Of course you are right on the face of it, but my point stands. The manipulation possible in the cash basis is of limited scope and duration and using it as an accounting method has its own downside too. Besides, with accrual, when you get to th>>>

Good ones guys. I just keep believing have a big CPA attached to my returns pronounces me as legit, and if there is really a problem she will handle it.

Altho I take her advice, she does not manage my business, and I don't pretend to know all of the i>>>

Egg,

I really can't profess any expertise is cash basis accounting. It was purely reasonable deduction on my end. With accrual, at least the way we do it, billing doesn't affect anything. If we over bill or under bill, the taxes are actually figured>>>

Got it. I'm no professional accountant either, but I get the gist, usually. So do you. The downside, if you want to call it that, of 'cash-basis' is there is no such thing as writing off a bad debt. You either collect or you don't. You can't inf>>>

With the example of ording trucks of material.... you don't have to take inventory? I know inventory is a number I can play with, but eventually I'll pay taxes on it, so playing with the numbers in a big way is sort of non-sensical. At least with acc>>>

That makes sense. So the point of impact is the instant the progress is 'logged.' Therefore if your fiscal year ends on November the 14th and you have a major project ripe and ready for a phase to be logged, but your controller is overwhelmed with an>>>