When you first thought about starting a construction company, you probably imagined creating impressive architecture, honing your skills and providing a quality service to your clients. You likely weren’t imagining bookkeeping, business plans and balance sheets. 

And that’s okay! 

Being a business owner does mean you have to wear many hats. But that doesn’t mean you have to be an expert at everything! In fact, trying to handle all of these responsibilities alone could end up damaging your business. 

So, with that in mind, we’re going to guide you through just some of the (many) ways hiring a construction accountant can boost your profits and your business so you can focus on what you do best!

Industry expertise 

Maintaining your books can be an arduous task (whether you’re a butcher, baker or candlestick maker). However, the complexity of the construction industry makes managing your finances all the more challenging. 

You see, unlike many businesses, it’s not as simple as managing your payroll and monitoring your accounts payable/receivable. You also have to consider things like contract value, union rates and the duration of projects. 

Thankfully, there are industry-specialised accountants who can assist you with all of your financial needs. So not only will they take care of your tax prep, audits and accounts – they can also help you:

  • Create project budgets.
  • Forecast for changes such as rising material costs.
  • Liaise with project managers, subcontractors and external vendors.
  • Evaluate which projects to bid on.
  • Meet industry standards.

By investing in a construction accountant, you can streamline your processes, save countless hours consolidating your books and increase your profits (whilst remaining compliant with tax regulations). 

Financial forecasting

Financial forecasting is important for all businesses, but it is absolutely paramount to those in the construction industry. Why? Because, within the construction industry, the total sum of your services won’t be paid until you complete each project. Therefore, you need to estimate (as accurately as possible) how much each project will cost, how much money is coming in and whether or not you can afford to accept additional contracts.  

However, consolidating your financial information to create a forecast can be a complex challenge. So if numbers aren’t your strong suit, we suggest you outsource an accountant. 

They will generate accurate forecasts to help you:

  • Estimate the time and labour needed to complete a job (whilst also accounting for under and overbilling). 
  • Protect you against unforeseeable complications that may affect your cash flow.
  • Strategise for growth. 
  • Implement precautions for quieter months. 

Cost control 

Effective cost control is one of the best ways to increase your profits – and an accountant can help you maximise these monetary gains. They will help you identify areas where you have overspent and create suitable solutions to minimise your expenses. 

Your accountant will also liaise with project managers to identify discrepancies in long-term jobs, consolidate your financial data and create accurate P&L reports to help you strategise going forward.

All in all, cost control is about cutting your losses – and hiring an accountant is a great way to do that!

Let specialised experts oversee your accounts!

You may know the construction industry inside and out – but if finances aren’t your forte, managing your books can still be a mammoth task. So let the experts assist you! Not only will an accountant ensure you’re in line with the latest tax rules and regulations, but they will also optimise your business and boost your profit! 

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