- July 31, 2020
- Posted by: STERLING FINANCE
- Category: Construction
Construction companies face unique cashflow challenges. Some of these include long invoicing terms that put pressure on cashflow, and PAYE and VAT schemes that become more complex as the company scales.
Due to these ongoing challenges and the competitive nature of construction, having a good accountant can be invaluable.
Construction companies are notorious for struggling with cashflow. An accountant who specialises in the construction sector will be able to refine your accounts and free up your time on administration, helping to save you money.
Why do I need an accountant?
There are several benefits to using an accountant as a construction company.
The value of an accountant for construction companies is that companies can pay an accountant a fee and forget about the nuances of tax and cashflow. Their accountant will take care of their tax and financial records for them, allowing the construction company to focus on delivering their product and service.
If you currently keep your own records and books and file your own tax returns, you are wasting a lot of energy and money. It is more economical to hand this side of your business over to an accountant who specialises in it.
Most construction companies do not have the time or resources to keep and review existing financial records. This can place stress on cashflow and cause issues as records on incomings and outgoings to become blurred.
It’s also important to consider the many lucrative tax-saving opportunities that accountants can identify for you.
For example, there may be opportunities within your construction company to advance expenditure by buying equipment or investing in a new website. You may also be able to claim capital allowances for machinery or extract profit in a tax-efficient way as a company director. An accountant can help with all of this.
How to choose a good accountant for construction companies
Construction companies face unique cashflow challenges so any accountant you choose should have experience within the sector.
Your accountant should also be a Chartered Certified Accountant. This means they are a qualified member of the ACCA (the Association of Chartered Certified Accountants). It is a sign of quality, trust and experience.
You should also meet with an accountant to discuss your needs. This can be face to face, via Zoom or on the phone. Speaking with an accountant is the best way to gauge whether or not you would like to work with them.
Sterling Finance has been providing services to the construction businesses since 1999 and we proud ourselves on the knowledge and experience gained through the process.