Navigating the complex landscape of construction accounting is vital to unlocking the construction business’s full potential.
Accounting professionals in the construction sector have the necessary knowledge and experience needed to support construction businesses in managing intricate payment arrangements, overcoming industry-specific obstacles, and adhering to constantly evolving legislation.
This blog will discuss the key factors for selecting the right construction business accountant.
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Key takeaways
- Selecting the right accountant is crucial for managing complex construction finances and ensuring compliance.
- Ensure the accountant has the qualifications, industry expertise, and a strong reputation.
- Discuss fees, confirm their availability for support, and ensure good personal compatibility for a smooth working relationship.
Steps to select the best accountant for the construction business
1. Define business requirements
Before you start calling a specialist accountant, you’ll have to decide what services you need. Are you seeking basic bookkeeping services? Do you require tax planning services? Or do you need more extensive services?
Knowing the fiscal tasks you will handle and the accounting firm oversee will enable you to narrow down the possibilities.
Next, you need to determine the type of accountant you want. Your small company can profit from a part-time, outside accountant when you are only looking for an individual to prepare financial reports and analysis.
When business transactions become more challenging, and you can’t complete the duties independently, you can hire a full-time accountant.
2. Assess accountant qualification
Accounting for construction firms is not a simple task. Therefore, you want to ensure the accounting professional you’re employing has the proper education and credentials to assist you in growing and expanding your construction company.
Ideally, you can consider outsourcing to a suitable chartered or certified accountant firm. These accountants are highly qualified, experienced accounting professionals. They are often members of credible accounting bodies and have specialised skill sets.
You can also look for credentials like AAT, ACA, ACCA, CIMA, IFA and CTA.
3. Check for their knowledge regarding regulations
Appointing an expert accountant implies they will be familiar with any pertinent law changes and how vendors work. You can feel assured that you are getting the right guidance and that crucial factors are not overlooked.
Look for someone with a strong understanding of construction-specific accounting practices, experience with industry-specific software, and the ability to provide valuable insights into cost management and profitability.
4. Assess their reputation and reviews
Reviews and reputation are essential aspects to consider when choosing a construction accountant. Seek out an individual who has received outstanding feedback from other contractors and has an excellent industry reputation as an accountant.
Learn more about their reputation by visiting their website, social media accounts, and internet directories.
It’s important to take your time choosing the best construction accountant. Seek an accountant with the necessary training and expertise to manage independent contractors and freelancers and a solid industry reputation.
By selecting the appropriate accountant, you can ensure that your company complies with tax laws and has the resources required to expand and prosper.
5. Discuss their fees
Traditionally, accounting professionals are charged for their time. This implies that you would be responsible for paying for their time managing your accounts, responding to your emails, and having financial discussions with you.
However, it’s becoming more common for accounting professionals to provide fixed fee services, often giving you limitless access to their accounting services at no extra charge. This implies that you initially discuss with your accountant all the necessary services that you need and then pay a fixed price.
A fixed fee structure also makes it simpler for your accountants to get to know you and your company, indicating that the service you receive is likely to be more effective and personal.
For instance, you can allocate £1,000 a month for your budget. In return, you may want your financial professional to:
- Submit your business’s tax returns
- Develop growth tactics
- Complete risk assessments
- Create financial reports
- Ensure all your financial records are accurate and compliant
The most quick and easy method is to ask for a quote. You want to know precisely how much you’ll pay and what services you’ll get in return as part of that quote.
6. Assess availability and support
Choose an accounting professional whose availability aligns with your organisation’s needs. Make sure they meet your schedule, whether you need advice regularly or occasionally.
Check their responsiveness to critical financial issues and readiness to provide timely support. Consistent availability guarantees that you get support and direction as soon as possible, allowing you to take advantage of any financial possibilities or problems as they present themselves and facilitate efficient business operations.
7. Make sure you get along
It may sound insignificant, but even if you outsourced the best construction accountants, they would still be not beneficial if you didn’t get along. Thus, pay attention to this last action!
As you will still have close working relationships with your outsourced accountant even though they are an external party.
Thus, arrange a meeting, get to know them, and discover how they do business. Only then can you, with assurance, determine whether or not they’re the perfect fit for your company.
Final thoughts
It’s important to take the time to search for qualified accountants for your construction business. Your construction accountant will be deeply involved in every aspect of your company, so you must have good communication and a professional relationship.
By examining these factors, you can find an accounting professional who can help your construction business thrive, handle finances effectively, and easily overcome the industry’s complexities.
