Various moving parts need to come together to ensure a construction project is completed. At the front of the process are the faces that you see who the ones that plan, prepare and complete the project. As such, it is important that everyone involved is perfectly qualified to get the job completed on time, and to a professional standard.
Within the industry, construction companies face unique cash flow challenges. Some of the challenges can include long invoicing terms that can put pressure on other things such as cash flow, and PAYE and VAT schemes. These schemes only become more complex as the company expands. Since these are ongoing challenges and the nature of the construction industry is highly competitive, support from a good accountant is invaluable for a business. As such, it is important to choose an accountant that has a wealth of experience within this dynamic sector. This provides peace of mind that any finances involved are being dealt with professionall
Since the construction industry relies heavily on time management and safety, it is important that all those involved in the process are able to achieve the goals set before the project gets underway.
Before undertaking your next construction project, ensure that you have selected an accountant that will be best suited to handle the finances of such a project. Here are just a few things to consider when choosing an accountant.
Check the qualifications
When selecting an accountant, ensure that they are a Chartered Certified Accountant. This means that they are a qualified member of the ACCA, the Association of Chartered Certified Accountants, which is a sign of experience, quality and most importantly trust.
Aside from qualifications, check to see if they have the experience in delivering this type of service. Not only will it mean an excellent job is completed but they may be able to provide guidance on areas that you did not consider previously. Take the time to interview potential candidates, just so you can see what choices are available to you. After selecting the person you believe is right for the project, and after the project has completed, you may find that you want to continue working with them in the years to come.
Consider project accounting
Project accounting and financial accounting are often considered the same, however, both offer two separate results. Financial accounting focuses on periods in a financial year, that differ between businesses as they depend on the starting date of the company.
Project accounting focuses on any of the financial transactions that are related to managing a project, which includes billing, costs and revenue. The start and end dates correspond with the beginning and completion of a project. Accountants and project managers use this method to integrate key financial tasks on a project-by-project basis, as well as report their progress and success to the management.
You can rely on project managers to keep you informed on the statuses of direct costs, overhead costs and any revenues for a specific project. A project accountant will generate these figures for you in financial reports so you can use them to determine if there need to be any adjustments to your project’s budget and work breakdown structure.
When looking for an accountant, it’s worth looking into project accounting, like Goodman Jones. A firm like this will be able to help develop a project accounting plan to ensure that the projects they manage are completed on budget and on time.
Find a referral
When selecting an outside accountant, find out who and/or which firms that any of your friends and colleagues are using. Additionally, reach out to others within the industry for names or referrals. Having this support will allow you to find the perfect accountant to help you during your next project.
Finding a construction bookkeeping solution
Bookkeeping in any industry is a process of sorting through documents and information and recording revenue and expenses. With construction companies, bookkeepers need to follow a precise process to record transactions accurately.
Construction bookkeeping calls for a unique approach, and there are a few various options for construction businesses. Accounting software such as Quickbooks can help you chosen accountant to manage your bookkeeping. Without some background or experience in bookkeeping, it can be challenging to record all the complicated transactions within a construction company. Regardless of the option you choose for your bookkeeping needs, it is useful to understand the process involved in construction bookkeeping for any of your future projects.
For any business, taking the time to research into what support is available will be incredibly beneficial for any company. Whilst it does feel like a time-consuming task, it will save you heaps of time in the long run if you find an accountant that can complete the job perfectly the first time around.
