182. Navigating ASC-842: What Construction CPAs Need to Know

182. Navigating ASC-842: What Construction CPAs Need to Know

Author: By FOUNDATION Software November 20, 2024 Duration: 28:48

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.


Running a team that isn't tied to a single office comes with a unique set of challenges and opportunities. The Mobile Workforce Podcast, brought to you by FOUNDATION Software, digs into those realities through candid conversations. Instead of abstract theory, you’ll hear directly from leaders and experts who have navigated the complexities of managing remote and dispersed teams. They’ve been in the trenches, figuring out how to maintain productivity, foster company culture, and drive profitability when everyone is geographically scattered. Each episode focuses on practical insights and lived experiences, offering a sense of camaraderie and concrete advice for business owners, managers, and operational leaders. The discussions naturally explore how to streamline processes, leverage technology effectively, and build resilient systems that support a mobile workforce. This isn't about fleeting trends; it's about sustainable strategies for operational excellence. Tune in for a genuine exchange of ideas that challenges conventional thinking and provides actionable takeaways for improving how your business functions day-to-day. Whether you're deep into managing remote teams or just beginning to build a more flexible operation, this podcast serves as a valuable resource for navigating the evolving landscape of modern work.
Author: Language: English Episodes: 100

The Mobile Workforce Podcast
Podcast Episodes
87. Preparing For an Economic Correction with Brady Bryan [not-audio_url] [/not-audio_url]

Duration: 23:30
The economy isn't a stagnant thing and we all know that it flows from bull to bear over time. Thankfully over the past 200 years we have seen that every time the economy slows down it is a correction and it always comes…
85. Why Low Tech Operations are Hurting the Construction Industry [not-audio_url] [/not-audio_url]

Duration: 41:04
Low tech construction is still functional in today's market but we all know that the days of analog processes and the contractors that stick to them are numbered. If we want to thrive in the future construction industry…

«1...678910