Last year, we had already begun many of our audits prior to the pandemic’s onset, so the impact was less significant as we were down to wrapping up and reporting. This year-end, we will face a full audit cycle with restricted physical client interaction. Be sure you meet with your auditors to be certain you understand their approach, timing, and the impact that this new process will have on your staff and the timing of your audits. This is new for all of us, and we will work through it. Frequent communication and a commitment to technology will be required. Your accounting staff must be vigilant in its process of checks and balances.
Accounting Corner
Looking Ahead One of my priorities is to keep my focus on the horizon. Last year, we were experiencing strong tail winds and seeing much promise while remaining cautious about the unknown “Black Swan.” The Black Swan of 2020 appeared in the form of a pandemic. The strong backlog did carry most of you through a solid 2020, but what lies ahead for 2021 and beyond is much less clear. It is no secret that the state of New Jersey along with all its agencies and municipalities have experienced great financial strain with no short-term recovery in sight. The impact of this has already been felt in a slowdown of existing contracts and projects coming out to bid. Last December’s COVID-19 recovery legis-
24 Utility & Transportation Contractor | february| 2021
lation provided funding to state agencies such as the DOT, to airports, and to water and energy projects. That said, a change of administration has historically created a lag as the former administration’s initiatives will be refocused to those of the new administration. Certainly, New Jersey hopes to have much more cooperation from the incoming administration than from the prior. Time will tell if the large infrastructure initiatives will get the attention needed to speed economic recovery. What is clear with the naming of Boston Mayor Martin Walsh as Labor Secretary is that the incoming President is signaling that he will keep his promise of being the most union-friendly president ever. How this will impact New Jersey utility work will be interesting. Events such as those that occurred at the Capitol suggest that 2021 will be a year of uncertainty and change. To best prepare for this, meet with your internal management team. Talk to your external team of trusted advisors. Assess where your company stands from a workload, labor, and technology position. Analyze the various options you have that can help you prosper through this period of change. With all that happened in 2020, there were still some big winners. Take the necessary steps now to help your company be one of those big winners in 2021.
