Construction Monthly Magazine | South Florida 2023 Build Expo Show Edition

Recession Protection Strategies to
Increase & Retain Your Working Capital
Without an offensive posture
determined to save your company
money, economic insecurities,
supply chain disruptions,
and managing a challenging
workforce can influence
companies to be more reactive,
adjusting to the ever-changing
rules and guidelines. Now is the
time to be proactive, but most
business owners cannot invest
the hours to become a financial
expert and stay current with the
latest tax strategies.
Businesses need a partner
whose primary focus is to make
companies more profitable. This
can be accomplished through operational,
insurance and tax strategies by minimizing
your income tax so you can maximize your
working capital to strengthen your company.
We want to share 6 strategies you should
consider to increase profitability at your
construction company:
1. Conduct a Utility Audit
A utility audit company can get you refunded
for past overcharges while also saving on
future bills. They will look back three years on
your utility bills and determine if you have any
bills you should not be paying. On average,
80-95% of companies qualify for a refund.
They will also do an annual review for the next
three years to help you find any additional
savings.
2. Apply for the Employee Retention Credit
Employee Retention Credits (ERC) came
out the same time as Paycheck Protection
Program (PPP) loans as an incentive program
to help stimulate the economy during the
pandemic. Originally, you could choose
either a PPP loan or ERC. At the end of 2020,
Congress decided you could get both, as long
as you back out the money received from
your PPP loan employee forgiveness as well
as other requirements. There are two ways to
qualify for the ERC:
1. Drop in sales of 50% from 2019 to 2020
or a 20% decline by quarter for the first 3
quarters of 2019 compared to 2021.
32 CONSTRUCTIONMONTHLY.COM
RICHARD
RODGERS
Founder – Dannah
Investment Group LLC
2. A business disruption caused by a governmental mandate. This second method is the area that
our tax attorney qualifies most construction companies as eligible. If you have been told that you
don’t qualify as a construction company, it is worth a call to explain why you might.
3. Rethink Health Insurance
The American Healthcare Act has afforded the creation of programs beneficial
to both the employer and the employee. These unique health insurance plans
incorporate healthy lifestyle strategies that can make you as a business owner
approximately $500 per employee per year. In addition, employees can save
up to $1,800 per year by participating in the healthy lifestyle campaign. We
help connect you to partners who manage all the details and allow you to add
this benefit without changing the quality of care or even changing insurance
companies.
4. Eliminate Credit Card Charges
Credit card fees are changing dramatically. We can help you reduce or eliminate
your credit card fees by using a merchant processing platform that lowers your
monthly merchant credit card processing fee by up to 15-20%. You can also
receive a potential rebate, putting money back in your pocket.
5. Be Proactive with Tax Planning
Tax planning is not planning how much tax you have to pay; tax planning is planning on how
to minimize your tax liability by utilizing tax strategies. We can help you reduce your adjusted
gross income through charitable strategies and tax-deductible investments. This is a more
customized approach and is worth a conversation.
6. Defer Your Capital Gains
If you are selling your company at any point, you could be facing substantial capital gains. We have
strategies to defer capital gains, thereby enabling you to earn investment income on what you
would otherwise pay in taxes. We can also increase FDIC limits on cash balances above $1 million.
To give you an idea on the cost savings if you took advantage of these strategies, we have
included a sample Texas Construction Company with potential savings.
Fictitious Texas Construction Company
50 Employees Monthly credit card sales: $100,000 Utility costs: $20,000
Texas Construction Company
Strategy 1: Utility Audit Savings $24,000
Strategy 2: Credit Card Savings $42,000
Strategy 3: ERC Savings $756,000
Strategy 4: Health Insurance Savings $25,000
Strategy 5: Tax Planning Savings $285,392
Aggregate Savings: $1,132,392
As you can see, there are substantial savings in each strategy that your company could capitalize
on. All of these strategies require no up-front cost to you, other than your time. By shifting to an
offensive posture, you could save your company hundreds of thousands of dollars.
DANNAH INVESTMENT GROUP, LLC
BOOTH 608
DANNAHINVESTMENTS.COM
RICHARD@DANNAHINVESTMENTS.COM
214-614-2663