The Carolinas chapters of the Construction Financial Management Association (CFMA) hosted the 19th annual CFMA Carolinas Construction Conference on October 21 and 22, 2021. Every year, the conference provides attendees with timely and relevant insights for construction accounting and finance strategies. This year’s conference focused on change, the only constant.
As legislative changes loom on the horizon, backlogs shrink and the competition for labor increases, now, more than ever, construction companies need a blueprint for how to move forward.
Whether you missed the event or just want a refresh, below are some key takeaways from the conference, including DHG’s tax update.
| 1 || CFO Perspectives: In discussions on the challenges of being a CFO in the current construction market, panelists emphasized the importance of having a good team, understanding risk management, and provided insight on how to combine the two to make wise financial decisions. |
| 2 || Emerging Employment Issues: COVID-19 has created several challenging employment issues. It is critical to listen to your employees, have thoughtful communication, and engage other stakeholders when making decisions. While there are many unknowns, there are still rules to be enforced to ensure employment laws are followed. |
| 3 || Process Changes and Effective Deployment of Technology: Technology is moving to the forefront to help manage the everyday processes that are integral to running a construction company. When selecting a process to transform, it is essential to evaluate and prioritize the areas with the highest volume, most inefficiency, and greatest risk to the company. To effectively deploy the selected technology, put together a taskforce of key users, stakeholders, and implementers as well as a timeline with specific goals to stay on track. |
| 4 || DHG Tax Update: A new administration has put forth a new proposed tax bill, the Build Back Better Act. This session provided an overview of multiple proposed tax updates, including but not limited to, changes to individual income rates, capital gains rates, corporate income tax rates, and estate exclusions.|
**UPDATE** Shortly after this presentation, a modified proposal of the Build Back Better Act was proposed. This updated bill has fewer impacts on most Americans, focusing instead on high-net-worth individuals. For more information check out The Ins and Outs of the Revised Build Back Better Act.
| 5 || The Chamber of Data—Toward the Post-Pandemic World: Labor and supply chain issues continue to be challenging in a post-pandemic world. While inflation concerns are top of mind, Anirban Basu, CEO and Chief Economist of the Sage Policy Institute feels it may be short-lived rather than long-term. There is a continued shift to the coastal areas of the country and away from larger cities, this will give new markets opportunities for growth in real estate and construction. |