Why Do Construction Companies Need Specialist Accountants?
If you are looking for an accountant to take care of your business, then you can just choose anyone, right? As long as they are fully qualified and have some experience to their name. While that is true, that doesn’t mean you should do that. If you run a construction business, then you will want to choose an accountant for construction companies to handle your financial affairs.
So what is the difference between construction accounting and regular accounting? Why do construction companies need specialist accountants? Here at Outsource Financial Solutions, we have all the answers to your questions.
Every project is different
How is construction accounting different from standard accounting? Well, in regular accounting, all income and expenses are tracked at the company level. Construction companies, on the other hand, operate on a project-by-project basis. This means that each project is in itself its own concern with totally unique costs, revenues and profit margins. So you can expect a lot more unpredictability!
A difference in accounts receivable
Construction accounts receivable are billed differently, too. This is most often done according to percentage of project completion, and this can be affected by everything from the reliability of your subcontractors to weather and building supplies. It is important to work with an accountancy firm who has a solid understanding of this.
More complex regulations
When you are running a construction company, you have all the regular concerns that every other business owner has, just with the addition of a lot more red tape! Things like the Construction Industry Scheme (CIS) require registration and the filing of monthly returns, and the penalties for not keeping up to date with this can be very hard indeed.
You may be running multiple projects at once
What is more time-consuming and comes with the potential to make costly errors than a construction project? Running multiple ones! That is the reality for most construction firms. If you have several projects running at once, then you are going to have to contend with all of the above for each one. Factor into the mix that construction projects can go on for years, and you have a situation where it is very easy to overlook things that can cost you lots of money later.
Why customers choose us
There are so many variables when it comes to accounting for construction companies, and that is why you need a team with genuine expertise in the field. Here at Outsource Financial Solutions, we have years of experience to draw upon as we work. We know that each client is coming to us with very different requirements, which is why we take the time to get to know each one and deliver a service that is tailored to their needs. Whether we are helping you to optimise your tax efficiency or getting to grips with your cashflow management, you are in safe hands.
Talk to us today
If you want to find out more about us and what has made us such a highly regarded construction accountant, get in touch with us today! We are here to answer any questions that you may have about us and what we do, so you can proceed with total confidence. We’re here to give you the support you and your business need at every stage, and we can’t wait to help you.
