Managing Rising Material Costs: Budgeting and Forecasting for Contractors

/in , /by

Rising material costs have become one of the most significant challenges in the construction industry. From steel and lumber to concrete and insulation, contractors are grappling with price increases that impact project budgets and timelines. As supply chain disruptions and inflation continue to drive costs upward, contractors must adopt effective strategies for budgeting and forecasting to stay competitive and maintain profitability. 

In this blog, we’ll discuss practical approaches for managing rising material costs, including budgeting strategies and the importance of accurate forecasting for contractors. 

Why Rising Material Costs Matter 

Construction material costs have been volatile over the past few years, and fluctuations can have a significant impact on a contractor’s bottom line. When materials become more expensive, the cost of completing a project rises, potentially leading to lower profit margins or project delays. With the increasing unpredictability of material prices, contractors must be proactive in their financial planning and project management to avoid cost overruns. 

  1. Supply Chain Disruptions
    Global supply chain issues have contributed to delays in material availability, driving up prices. Contractors need to understand the impact of these disruptions on their projects and take steps to mitigate the risks. 
  1. Inflation
    Inflation continues to affect the cost of raw materials, which increases the overall cost of construction. With materials becoming more expensive, contractors must find ways to adjust their budgets without compromising quality or cutting corners. 
  1. Market Fluctuations
    Material prices are often influenced by demand and availability. Contractors must track these fluctuations and incorporate them into their planning to ensure accurate cost estimations. 

Budgeting Strategies for Managing Material Costs 

To successfully manage rising material costs, contractors need to implement smart budgeting strategies that account for price increases and help mitigate the impact on project profitability. 

  1. Incorporate Buffer Costs
    A smart budgeting strategy involves incorporating buffer costs for materials. Contractors should account for price volatility by setting aside additional funds to cover unexpected material price increases. A well-calculated buffer can help ensure that a project stays on track even when material prices rise unexpectedly. 
  1. Negotiate with Suppliers
    Establishing strong relationships with suppliers can help secure better pricing and more predictable delivery schedules. Contractors who negotiate long-term contracts or bulk purchase agreements may be able to lock in favorable pricing, reducing the impact of price increases during the project. 
  1. Use Cost-Effective Materials
    When possible, consider using alternative, cost-effective materials that still meet the required quality standards. Substituting expensive materials with more affordable options can help reduce overall project costs while maintaining performance standards. Additionally, investigating sustainable materials can sometimes offer cost savings and attract clients who prioritize eco-friendly solutions. 
  1. Review Past Projects for Insights
    Analyze previous projects to identify trends in material costs. By reviewing historical data, contractors can gain valuable insights into how material prices have fluctuated over time and use this information to make more accurate projections for future projects. 
  1. Monitor Material Prices Regularly
    Tracking material prices on an ongoing basis is crucial for adjusting your budget and forecasting. Regularly monitoring market trends and supply chain conditions allows contractors to make adjustments to budgets as material prices change. This proactive approach can help prevent surprises when prices increase unexpectedly. 

The Role of Forecasting in Managing Material Costs 

Forecasting plays a crucial role in managing material costs and ensuring that a contractor’s budget is realistic and sustainable. By accurately forecasting material needs and costs, contractors can make informed decisions and avoid costly mistakes. 

  1. Material Quantity Forecasting
    Accurately predicting the amount of material needed for a project is essential for controlling costs. Contractors should base their material forecasts on detailed project plans, accounting for waste and unforeseen changes in the scope of work. By purchasing the right amount of materials upfront, contractors can avoid paying for excess material or dealing with shortages that lead to project delays. 
  1. Market Trend Analysis
    Forecasting material costs requires a thorough understanding of market trends. Contractors should stay informed about potential supply shortages, price trends, and other factors that could affect material availability. Being aware of upcoming price hikes or changes in the supply chain can help contractors plan their budgets and procurement strategies more effectively. 
  1. Scenario Planning
    Scenario planning allows contractors to prepare for different price scenarios and supply chain disruptions. By modeling various cost outcomes, contractors can identify strategies to minimize the financial impact of material price increases. This approach enables contractors to make informed decisions about when to purchase materials and how to adjust their budgets accordingly. 
  1. Collaboration with Financial Advisors
    Working closely with financial advisors or accountants can help contractors make more accurate forecasts. Financial professionals can help assess cash flow, predict potential material cost increases, and recommend strategies for managing fluctuating costs. Collaborating with a financial expert ensures that contractors maintain a stable financial position throughout the project lifecycle. 

How Brady Martz Can Help 

At Brady Martz, we understand the complexities of managing rising material costs in the construction industry. Our team of experts can assist contractors in creating detailed budgets, implementing forecasting models, and identifying cost-saving strategies. With our financial expertise, we can help ensure that your projects are completed on time and within budget, even in the face of rising material costs. 

Contact Brady Martz today to learn more about how we can support your construction business in managing material costs effectively while improving profitability. 

Working Capital Optimization: The Hidden Key to Business Success

/in , /by

Think of working capital as the lifeblood of your business—the cash flow that keeps operations humming day in and day out. Yet, many business owners overlook the untapped potential of optimizing this critical resource. At Brady Martz, we believe that fine-tuning your working capital is not merely an operational detail, but a strategic move that can dramatically improve your liquidity, reduce financing costs, and enhance overall performance.

Working capital is essentially the money you have on hand to cover day-to-day expenses. It’s the difference between your current assets—like cash, receivables, and inventory—and your current liabilities. While maintaining sufficient liquidity is important, the real opportunity lies in striking the right balance. When you optimize working capital, you’re ensuring that every dollar is working as efficiently as possible. This means not holding excessive cash or inventory, while also avoiding delays in converting sales into cash.

For many businesses, even small improvements in managing receivables, inventory, or payables can have a significant impact. For example, speeding up collections from customers or negotiating better payment terms with suppliers can free up cash that might otherwise be tied up unnecessarily. This extra liquidity not only keeps your operations running smoothly but also minimizes the need for expensive external financing when cash flow gaps arise. In today’s competitive landscape, those savings can make a big difference in your bottom line.

At Brady Martz, our comprehensive approach to working capital optimization goes beyond routine financial management. We start by conducting a detailed analysis of your current cash flow cycles to identify inefficiencies and bottlenecks. By understanding your unique business dynamics, we can help set realistic targets for receivables, inventory levels, and payables. The goal is to create a streamlined process that frees up cash, reduces reliance on costly credit, and positions your business to seize growth opportunities as they arise.

We also work closely with you to develop practical strategies tailored to your specific situation. Whether it’s refining credit policies, implementing advanced inventory management systems, or negotiating improved supplier terms, our focus is on building a more agile, responsive business model. When your working capital is optimized, you’re not just better prepared for daily operations—you’re also better positioned to invest in new projects, scale your business, and enhance profitability.

Ultimately, optimizing your working capital is about gaining control over the financial engine of your business. It’s a strategic lever that can transform the way you manage cash, reduce operational costs, and increase overall efficiency. And the best part? Even modest improvements can lead to substantial gains over time.

If you’re a business owner looking to unlock hidden potential in your operations, let Brady Martz show you how working capital optimization can be a game changer. Contact our team today to learn how we can help you fine-tune your cash flow, reduce financing costs, and drive sustainable success, ensuring that every dollar works as hard as you do.

Automotive Warranty Programs: How Dealerships Can Drive Customer Loyalty

/in , /by

In today’s competitive automotive market, customer loyalty is more valuable than ever. With car buyers having a wealth of options at their fingertips, dealerships must find innovative ways to keep customers engaged and coming back for future purchases and service needs. One of the most effective strategies? A well-structured automotive warranty program. 

The Power of Automotive Warranty Programs 

Warranty programs provide peace of mind for customers by ensuring that their vehicle is protected against unexpected repairs. However, they also serve as a crucial tool for dealerships looking to foster long-term relationships. When executed correctly, warranty programs can increase customer retention, drive service department revenue, and enhance the overall customer experience. 

Key Benefits of a Strong Warranty Program 

  1. Customer Retention
    A comprehensive warranty program gives customers a reason to return to your dealership for service and repairs, rather than seeking independent repair shops. This continued interaction builds trust and increases the likelihood of repeat business. 
  1. Increased Service Revenue
    Warranty repairs often lead to additional service opportunities. Customers who visit your dealership for warranty work may also require routine maintenance or repairs outside of warranty coverage, boosting service department profits. 
  1. Enhanced Dealership Reputation
    Consumers value transparency and reliability. A well-structured warranty program demonstrates a dealership’s commitment to customer satisfaction, which can lead to positive online reviews and word-of-mouth referrals. 
  1. Competitive Differentiation
    In a crowded market, a superior warranty offering can be a key differentiator. Providing extended warranties, complimentary maintenance plans, or flexible coverage options can set your dealership apart from competitors. 

Structuring an Effective Warranty Program 

To maximize the benefits of an automotive warranty program, dealerships should consider the following best practices: 

  • Offer Transparent Coverage
    Customers should clearly understand what is and isn’t covered under the warranty. Providing easy-to-read documentation and straightforward explanations helps build trust. 
  • Provide Extended Warranty Options
    Many customers are willing to pay extra for extended coverage. Offering tiered warranty plans allows buyers to choose the level of protection that best suits their needs. 
  • Train Your Sales and Service Teams
    Ensuring that employees are well-versed in warranty details allows them to educate customers effectively and confidently handle warranty claims, leading to a smoother customer experience. 
  • Incorporate Digital Tools
    Utilize CRM systems to track warranty-covered repairs, send reminders for upcoming service needs, and personalize communication with customers. 

The Future of Warranty Programs 

As the automotive industry evolves, warranty programs must adapt as well. With the rise of electric vehicles (EVs), many dealerships are rethinking warranty structures to cover new technology and unique maintenance requirements. Additionally, offering subscription-based service plans or bundling warranties with financing options can further enhance customer loyalty. 

How Brady Martz Can Help 

A strong warranty program is more than just an added perk—it’s a strategic investment in customer retention and dealership profitability. By offering transparent, flexible, and service-oriented warranties, dealerships can build lasting relationships with their customers while differentiating themselves in a competitive market. 

At Brady Martz, we help dealerships implement financial strategies that support long-term growth and customer satisfaction. Contact us today to learn how we can assist in optimizing your dealership’s warranty programs and overall financial health. 

Sustainability Trends in Construction: Going Green to Boost Your Bottom Line

/in , /by

The construction industry is undergoing a significant transformation as sustainability becomes a top priority. As climate concerns grow, regulations become stricter, and consumer preferences shift toward environmentally friendly practices, the focus on “green” construction is more relevant than ever. Beyond the environmental benefits, adopting sustainable practices is proving to be a smart business strategy that can directly impact a company’s profitability. 

In this blog, we’ll explore the latest sustainability trends in construction and how they can help your business thrive in an increasingly eco-conscious market. 

Why Sustainability Matters in Construction 

Sustainability in construction refers to the practice of designing, building, and operating structures in an environmentally responsible and resource-efficient manner. This approach addresses not only environmental concerns but also economic and social factors, helping to create a more sustainable future. As the demand for sustainable buildings rises, construction companies are finding that integrating green practices can offer competitive advantages. 

  1. Regulatory Compliance
    Governments are increasingly introducing regulations and building codes that require sustainable practices. These regulations push companies to adopt environmentally friendly solutions in design, materials, and construction processes. Companies that stay ahead of these regulations can avoid fines and project delays while positioning themselves as leaders in the green construction space. 
  1. Energy Efficiency
    Building energy-efficient homes and commercial properties is now a priority for both developers and buyers. With energy costs rising and environmental concerns mounting, efficient buildings are in demand. Investors and property owners are eager to reduce utility expenses and enhance the long-term sustainability of their properties. 
  1. Market Demand
    Consumers today are more environmentally conscious than ever before. Many are actively seeking out green buildings or properties with sustainable certifications, such as LEED or BREEAM. By embracing sustainability, your company can tap into this growing market, attracting clients who prioritize environmental responsibility. 

Key Sustainability Trends Shaping the Construction Industry 

  1. Green Building Materials
    The shift toward sustainable materials is one of the most significant trends in the construction industry. Materials like bamboo, reclaimed wood, recycled steel, and low-carbon concrete are gaining traction for their environmental benefits. These materials not only reduce the carbon footprint of construction projects but also often offer cost savings in the long run by improving energy efficiency and reducing waste. 
  1. Energy-Efficient Buildings
    Energy-efficient construction practices are rapidly advancing. New technologies such as smart thermostats, LED lighting, and energy-efficient insulation materials can drastically reduce energy consumption. Implementing these systems can lower operational costs for building owners and result in lower environmental impact, boosting the appeal of your project to environmentally conscious buyers or tenants. 
  1. Sustainable Design Practices
    Sustainable design focuses on optimizing natural resources, such as utilizing passive solar heating, rainwater harvesting, and natural ventilation. These practices not only help reduce the carbon footprint of a building but also reduce the ongoing operating costs, creating long-term value for property owners and investors. 
  1. Waste Reduction
    Construction is one of the largest contributors to global waste, but waste management practices are improving. Builders are increasingly focused on minimizing construction waste by reusing and recycling materials, reducing landfill waste, and adopting efficient construction techniques. These measures can save costs and enhance a company’s sustainability profile, appealing to eco-conscious clients and investors. 
  1. Green Certifications
    Green certifications such as LEED (Leadership in Energy and Environmental Design), BREEAM, and ENERGY STAR have become essential for many construction projects. Achieving these certifications can help your company stand out in a competitive market. They not only demonstrate your commitment to sustainability but also attract clients who are looking to invest in energy-efficient and environmentally responsible buildings. 

How Sustainability Drives Financial Success in Construction 

While implementing sustainable construction practices often requires an upfront investment, the long-term financial benefits far outweigh the initial costs. Here’s how sustainability can directly impact your bottom line: 

  1. Reduced Operating Costs
    Energy-efficient buildings typically have lower operating costs due to decreased energy consumption. Over time, these savings can significantly increase the property’s overall value and the return on investment for developers and investors. 
  1. Increased Property Value
    Sustainable buildings often see higher resale values. Properties with green certifications, energy-efficient systems, and sustainable materials tend to attract premium prices because they promise lower utility costs and a reduced environmental impact. This can lead to higher profits when selling or leasing the property. 
  1. Attracting Eco-Conscious Clients
    As more businesses and individuals prioritize environmental sustainability, the demand for green buildings increases. Adopting sustainable practices gives you a competitive edge in attracting these clients, helping to expand your customer base and secure more contracts. 
  1. Incentives and Tax Benefits
    There are numerous tax incentives, rebates, and grants available for companies that implement sustainable practices. These incentives can help offset the initial costs of sustainable construction, making it more financially viable for construction companies to go green. 
  1. Enhanced Brand Reputation
    Being recognized as a leader in sustainability can improve your company’s reputation, making it more attractive to clients, employees, and investors who are committed to environmental stewardship. A strong sustainability focus can differentiate your company from competitors, increasing brand loyalty and business opportunities. 

How Brady Martz Can Help 

At Brady Martz, we understand the complexities of integrating sustainability into your construction projects. Our team of professionals can help you navigate the financial, regulatory, and operational aspects of going green. From tax planning and identifying incentives to optimizing financial structures for sustainable projects, we are here to support your efforts to boost your bottom line through sustainability. 

Contact Brady Martz today to learn how we can help you capitalize on the latest sustainability trends in construction and ensure that your projects meet both environmental and financial goals. 

Cost Segregation: A Tax Strategy for Real Estate Investors

/in , /by

Real estate investors are always looking for ways to optimize their returns and minimize their tax liabilities. One of the most effective strategies for achieving this is cost segregation. Cost segregation allows investors to accelerate depreciation on certain property components, providing substantial tax savings in the short term. 

In this blog, we’ll explore what cost segregation is, how it works, and why it’s an essential tax strategy for real estate investors looking to maximize their financial returns. 

What Is Cost Segregation? 

Cost segregation is a tax strategy that allows real estate investors to separate the costs associated with purchasing a property into different categories. These categories typically include building components, personal property, and land improvements. By doing so, investors can allocate certain property costs to shorter depreciation schedules (such as 5, 7, or 15 years), instead of the standard 27.5 or 39 years for residential or commercial real estate, respectively. 

The goal of cost segregation is to accelerate depreciation deductions, leading to significant tax savings in the earlier years of property ownership. The tax savings generated by these accelerated deductions can be reinvested back into the property or other investments, improving cash flow. 

How Does Cost Segregation Work? 

Cost segregation works by breaking down the various components of a property into different categories with varying depreciation schedules. This process typically involves hiring a cost segregation specialist to perform an in-depth engineering study of the property. Here’s a breakdown of how it works: 

  1. Identifying Property Components: The specialist identifies different parts of the property, such as personal property (e.g., furniture, fixtures, equipment) and land improvements (e.g., sidewalks, parking lots, landscaping), that can be depreciated on a shorter timeline. 
  1. Reallocating Costs: Costs associated with these components are reallocated from the general building structure (which has a long depreciation period) to the shorter categories, such as 5, 7, or 15 years. 
  1. Tax Savings: By accelerating depreciation deductions, investors can reduce their taxable income and enjoy significant tax savings in the early years of ownership. 

Why Cost Segregation Matters for Real Estate Investors 

For real estate investors, cost segregation offers several key benefits that can directly impact profitability: 

  1. Increased Cash Flow: Accelerated depreciation deductions reduce taxable income, lowering tax liabilities and resulting in greater cash flow. This is particularly beneficial for investors who rely on leverage and need the extra cash to service loans or reinvest in additional properties. 
  1. Reduced Tax Burden: Cost segregation helps investors reduce their current-year tax obligations by front-loading depreciation deductions. This strategy is especially useful for new property owners or those purchasing existing properties that haven’t fully utilized depreciation. 
  1. Time Value of Money: The tax savings generated from cost segregation can be reinvested into the property or used for other investments. This reinvestment boosts the overall return on investment and takes advantage of the time value of money. 
  1. Enhanced Financial Flexibility: The additional cash flow from tax savings offers greater financial flexibility, allowing investors to fund future acquisitions, property improvements, or other business expenses without needing to seek external financing. 

Key Considerations for Real Estate Investors 

While cost segregation can offer substantial tax benefits, there are several factors that investors need to consider before implementing this strategy: 

  1. Property Eligibility: Not all properties qualify for cost segregation. The strategy is most beneficial for newly purchased or recently renovated properties, as well as for properties where the cost of improvements is significant. 
  1. Cost of the Study: Conducting a cost segregation study typically involves upfront costs, which can vary depending on the complexity of the property. However, these costs are often offset by the tax savings generated from accelerated depreciation. 
  1. Tax Law Changes: The IRS periodically updates its rules on depreciation and cost segregation, so it’s crucial to stay informed about any changes that may impact the strategy. Working with a tax professional is essential to ensure compliance with current regulations. 

When Is the Best Time to Implement Cost Segregation? 

The best time to implement cost segregation is typically when purchasing a new property or after completing significant renovations. However, cost segregation can also be applied to existing properties if improvements have been made or if the investor wants to capture missed depreciation deductions from prior years. 

In some cases, investors may choose to perform a cost segregation study as part of their year-end tax planning to maximize their deductions for that tax year. 

How Brady Martz Can Help 

At Brady Martz, we understand the complexities involved in real estate investment and tax strategies like cost segregation. Our team of experts can help you navigate the intricacies of cost segregation, ensuring that you maximize your tax savings and improve your cash flow. 

We work with real estate investors across a variety of sectors, from residential to commercial properties, to implement cost segregation strategies that align with your long-term investment goals. Whether you’re looking to minimize your tax burden or reinvest in your portfolio, Brady Martz is here to help you optimize your real estate investments. 

Transaction Structuring 101: Why Terms Matter on the Sell Side

/in , /by

When it comes to selling your business, most people tend to focus solely on getting the best price, but that’s only part of the equation. The reality is, the party that controls the deal’s terms often secures the most favorable outcome. For business owners, it’s not about mastering every technical detail; it’s about engaging the right experts early on.

At Brady Martz, our Valuation, Transaction & Transformation (VTT) team is dedicated to handling the intricate aspects of transaction structuring so you can focus on running your business. We take a proactive approach by negotiating key components of your deal—often achieving outcomes superior to the initial offers. Our experts work to refine every element of the transaction, from securing a higher purchase price to setting a precise working capital peg that safeguards your net proceeds. We also help normalize EBITDA, a crucial step in ensuring that the business’s earnings accurately reflect its true operational performance. Beyond these, we negotiate favorable terms for seller financing, retained equity, and other critical deal components, ensuring that every element is optimized for your success.

Our approach is simple: let our VTT experts handle the complexities from the start. When you begin discussions with a potential buyer, our involvement means that seasoned professionals take charge of structuring the deal. We work closely with you to design a comprehensive framework that covers everything from pricing negotiations and working capital benchmarks to the finer details of contractual terms. This allows you to maintain control of your exit without getting bogged down in technicalities.

Ultimately, if you want to maximize the outcome of your sell-side transaction, don’t leave the terms to chance. Let Brady Martz step in early to handle the complexities of transaction structuring on your behalf. Our expertise ensures that every critical clause is negotiated with your interests in mind, paving the way for a smoother, more favorable exit.

If you’re a business owner seeking clarity, control, and a partner who can navigate the intricacies of a sell-side deal, reach out to us today. Our VTT team is ready to help you craft a deal structure that not only secures the best possible outcome but also supports a seamless transition—so you can confidently move on to your next chapter.

Navigating the Used Car Market in 2025: Trends and Opportunities

/in , /by

The used car market is set for another dynamic year in 2025, with evolving consumer demands, economic fluctuations, and technological advancements shaping the industry. Dealerships that stay ahead of these trends will be well-positioned to capitalize on opportunities, improve profitability, and enhance customer satisfaction. 

Below, we explore key trends influencing the used car market in 2025 and strategies dealerships can implement to navigate the landscape effectively. 

Market Trends Shaping 2025 

The used car market continues to be influenced by several key factors, including shifting consumer preferences, economic conditions, and supply chain dynamics. Understanding these elements is crucial for dealerships looking to optimize their inventory and pricing strategies. 

Increased Demand for Affordable and Fuel-Efficient Vehicles 

With rising interest rates and inflation affecting consumers’ purchasing power, affordability remains a top priority for buyers. Many are turning to used cars as a cost-effective alternative to new vehicles, particularly those with high fuel efficiency. 

How to Adapt: 

  • Stock fuel-efficient models and hybrid vehicles to attract budget-conscious buyers. 
  • Offer financing options tailored to buyers with varying credit profiles. 
  • Educate consumers on the total cost of ownership, including fuel savings and maintenance costs. 

Growing Popularity of Certified Pre-Owned (CPO) Vehicles 

Certified pre-owned (CPO) vehicles continue to be a strong selling point for dealerships, providing buyers with added peace of mind through extended warranties and thorough inspections. 

How to Adapt: 

  • Expand CPO programs to include a wider variety of makes and models. 
  • Highlight CPO benefits in marketing campaigns and sales discussions. 
  • Streamline reconditioning processes to ensure quick turnaround times. 

Leveraging Technology to Improve Sales and Customer Experience 

Technology continues to transform how consumers shop for used vehicles. Digital tools and online platforms are now essential for reaching potential buyers and streamlining operations. 

Enhanced Online Buying Experience 

Modern consumers conduct extensive online research before stepping onto a dealership lot, making digital presence more important than ever. 

How to Adapt: 

  • Ensure your website is mobile-friendly and offers real-time inventory updates. 
  • Implement virtual vehicle tours and online financing applications. 
  • Utilize chatbots and AI-driven customer service tools to enhance engagement. 

Data-Driven Pricing and Inventory Management 

Accurate pricing and effective inventory management are key to maximizing profitability and reducing carrying costs. 

How to Adapt: 

  • Use data analytics to track local market trends and adjust pricing accordingly. 
  • Monitor days-in-inventory metrics to optimize turnover rates. 
  • Implement automated pricing tools to remain competitive in real time. 

The Role of Fixed Operations in Supporting Used Car Sales 

With more consumers opting to keep their vehicles longer, service and maintenance departments play a crucial role in a dealership’s overall success. 

How to Adapt: 

  • Offer extended service plans and maintenance packages with used car purchases. 
  • Invest in training for technicians to handle diverse vehicle makes and models. 
  • Promote service specials and loyalty programs to encourage repeat business. 

How Brady Martz Can Help 

At Brady Martz, we help auto dealerships stay ahead with expert financial guidance on inventory management, tax strategies, and profitability optimization. 

As 2025 unfolds, proactive dealerships will have a competitive edge. Whether you need tax planning, financial insights, or operational improvements, Brady Martz is here to support your success. Contact us today. 

Brady Martz Named Among Accounting Today’s 2025 Top 100 Firms

/in , , /by

Accounting and advisory services firm Brady Martz is proud to announce that it has been named among Accounting Today’s Top 100 Firms, Regional Leaders for the Midwest, and Fastest-Growing Firms in 2025. Each year, Accounting Today releases an annual ranking of the leading national and regional firms, as well as their chief executives’ take on the major issues facing their firms, and their strategies for success for 2025 and beyond.   

“Being named among Accounting Today’s Top 100 Firms, Regional Leaders, and Fastest-Growing Firms is a tremendous honor for Brady Martz. This recognition is a testament to the hard work and dedication of our team members, who consistently go above and beyond to serve our clients and communities,” CEO Stacy DuToit said. “As we look to the future, we remain focused on providing value-added services to our clients. We are grateful for this recognition and excited for the opportunities ahead.” 

To learn more about Accounting Today, trends in the accounting industry, and to view the 2025 leading national and local firms list, visit accountingtoday.com.    

Founded in 1927, Brady Martz has been delivering exceptional client service for almost a century. Headquartered in Grand Forks, the Firm operates across 10 offices in North Dakota, Minnesota, South Dakota, and Texas offering advisory, audit & assurance, and tax services to a diverse range of industries.

IRS Updates Guidance on 179D Tax Deduction: What You Need to Know 

/in , , /by

The Internal Revenue Service (IRS) has recently updated its Large Business & International (LB&I) Process Unit guidance on the Section 179D Energy Efficient Commercial Buildings Deduction. With the introduction of Form 7205 and increased IRS scrutiny, ensuring compliance and partnering with the right provider has never been more critical. 

Key Takeaways from the IRS Guidance 

To successfully secure the 179D deduction and withstand potential audits, building owners and designers must meet the IRS’s evolving expectations. Here are three essential updates from the latest guidance: 

  • Certification Standards are Non-Negotiable – The IRS requires that energy-efficient commercial building property certifications be conducted by licensed professionals, such as engineers or contractors, using IRS-approved software and methodologies. 
  • Allocation Letters Must Be Accurate and Timely – Designers claiming 179D deductions on government-owned or tax-exempt buildings must obtain allocation letters signed by an authorized representative. These letters must contain specific building details and clearly identify all involved parties. Unclear or retroactive documentation will not be accepted. 
  • Thorough Documentation is Mandatory – The IRS expects detailed energy modeling reports, well-documented energy savings calculations, and fully substantiated project files. Incomplete records can lead to audits or denial of deductions. 

Why Choosing the Right Provider Matters 

The IRS’s heightened focus on 179D reinforces the importance of selecting a provider with the expertise to navigate compliance and maximize deductions. Before choosing a provider, consider these key questions: 

  • Does the provider have in-house energy consultants creating energy models? 
  • Does the provider have government relations personnel securing allocation letters? 
  • Does the provider have licensed Professional Engineers to certify claims? 

How Brady Martz Can Help 

At Brady Martz, we help clients navigate complex tax incentives with confidence. Our team of experienced professionals provides the expertise needed to ensure compliance, secure maximum benefits, and reduce audit risks. Contact Brady Martz today to learn how we can help. 

Valuation for Estate Planning: Securing Your Financial Legacy

/in , /by

Estate planning is a critical responsibility for any business owner, ensuring that your legacy is preserved and that your estate is managed in a manner consistent with your wishes and regulatory requirements. At Brady Martz, we believe that a thorough and well-documented valuation is an essential cornerstone of this process. It provides an accurate snapshot of your business’s current financial standing—vital for planning asset distribution, managing estate taxes, and preparing for succession.

A well-prepared valuation report helps you determine the right basis for estate tax calculations, ensuring that you are neither underestimating your liabilities nor exposing your heirs to unexpected financial burdens. It also brings clarity to the process of dividing your assets among beneficiaries, helping to minimize disputes and safeguard family harmony.

Our Valuation, Transaction & Transformation (VTT) practice plays a pivotal role in this process. We focus on gathering comprehensive financial data and applying proven methods to produce a robust valuation that stands up to scrutiny. This level of detail not only supports accurate estate tax planning but also provides a solid foundation for making strategic decisions about your business’s future. Whether you’re considering a succession plan or deciding how best to distribute your assets, our insights ensure that your estate plan reflects the true state of your enterprise.

An essential benefit of our approach is the way it supports effective succession planning. Many business owners face the challenge of determining who in the family or key management team will continue the legacy. With an accurate valuation, you can more easily identify the best options for transferring ownership, whether through gifting, buy-sell agreements, or other structured strategies. In this way, the valuation serves as both a snapshot of your current wealth and a strategic tool for planning your legacy’s future.

At Brady Martz, we are committed to delivering the highest level of service and expertise. We guide you through each step of the valuation process—from collecting financial information to interpreting the results and integrating them into your broader estate plan. Our approach is built on transparency and precision, ensuring that every decision you make is informed by a clear understanding of your business’s true worth.

If you’re a business owner ready to secure your legacy with a valuation that reflects your current financial state and supports sound estate planning, we invite you to reach out to our VTT experts at Brady Martz. Let us help you build an estate plan that protects your legacy and provides peace of mind for you and your beneficiaries.