Welcome to Butt Miller, Chartered Accountants for construction companies
If you’re looking for an experienced accountant for your construction firm, then our team at Butt Miller is ready to take on your challenges. We understand that the construction sector can be very complex, which is why we specialise in providing innovative tax and accounting solutions for construction firms like yours.
Our construction accounting services provide support in all areas, from managing your tax obligations to ensuring you can pay subcontractors on time through the CIS. We’ll keep you compliant with HMRC.
Contact Butt Miller today to discuss accounting services for your construction business.
What does a construction accountant do?
Construction accountants specialise in providing financial services tailored to the unique needs of businesses operating in the construction sector. They have detailed knowledge and experience working with construction firms and guide them through complex rules and regulations.
Our accounting services for the Construction Industry Scheme
At Butt Miller, we provide a comprehensive suite of services to companies operating in the construction industry.
Here’s what you can expect from us:
- We’ll advise you on the appropriate business structure to protect your risk and meet your financial and tax goals.
- We’ll guide you through the complex VAT rules that exist within the construction industry to ensure you apply the correct VAT rates for the work you undertake – getting this wrong can be costly!
- We’ll support you with payroll and the Construction Industry Scheme (CIS) on your behalf, ensuring compliance with HMRC.
- We’ll help you implement the most suitable accounting systems that provide strong financial data about your construction projects and support important business decisions.
- We’ll help with profit and cash flow forecasting to provide better financial visibility for your construction business, giving you complete peace of mind and control of the situation.
- We’ll assist you in developing your pricing system so that you are clear on the margins each project is expected to make.
Why use a specialist accountant for construction accounting?
The construction industry is fast-paced and challenging. It involves many complex rules that aren’t always easy to understand. Working with specialist accountants in the construction industry will ensure you get the best advice from the right people with the right level of expertise.
“We have been working with Roland, Alison, and the wider Butt Miller team for nearly a decade now, and I could not recommend them highly enough. Obtaining timely and accurate accounting information is a very challenging task for any construction company. Butt Miller has risen to this challenge, helping us implement weekly cashflow forecasting, quarterly management accounts and more recently project specific cost forecasting. Apart from being great accountants, Roland and the team have connected us with their network of local businesses and contacts for assistance with a wide variety of business needs. Butt Miller is an excellent partner for any business, from start-up to wherever your business is now or wants to go. They will have the answers and connections to help you on the journey.”
William Southon, Co-Director of Brickfield Construction
See our full case study with Brickfield Construction.
Get in touch with Butt Miller today
Our accountants for construction companies will help you get the specialist support you need without having to worry about increasing overhead costs. We provide a full range of outsourced accounting services for various businesses, including those in the construction industry.
With our experts handling complex financial management, you’ll gain more time to focus on other areas of your construction business.
Get in touch today to learn more about our construction accounting services.
Frequently asked questions about construction accounting
What type of accounting software is best for construction businesses?
There are accounting systems that specialise in the construction sector. This software can process daily accounting tasks, such as accounts payable, accounts receivable, and journal postings. It also allows for all the industry-specific nuisances, such as setting up projects, budgeting, managing subcontractors, CIS returns, and deductions. The software can also process customer valuations and applications for payments, along with accounting for retentions.
Why is construction accounting different to traditional accounting services?
Construction accounting differs from other sectors mainly because of the more detailed rules that exist for accounting for and paying VAT and the Construction Industry Scheme.
In addition, construction accounting differs from traditional accounting services in several key ways due to the unique nature of the construction industry.
Here are some reasons why:
- Project-Based Accounting: Construction projects typically have distinct start and end dates, each with its own budget, costs, and revenue. Therefore, construction accounting often involves managing multiple projects simultaneously, tracking costs, revenues, and profitability on a project-by-project basis, which is different from the continuous accounting cycle of traditional businesses.
- Job Costing: This involves tracking direct costs (such as materials, labour, and equipment) and indirect costs (such as overhead expenses) associated with each project. Job costing allows construction companies to accurately assess the profitability of individual projects and make informed decisions.
- Revenue Recognition: Revenue recognition in construction accounting can be complex due to the long-term nature of construction projects and the timing of payments.
- Regulatory Compliance: The construction industry is subject to specific regulations and tax laws that may differ from those applicable to other sectors. For example, construction companies in the UK must comply with the Construction Industry Scheme (CIS), which governs how subcontractors are paid and taxed.
- Cash Flow Management: Cash flow management is critical in construction accounting due to the cyclical nature of cash inflows and outflows associated with construction projects. Construction companies often face delays in payments from clients, making cash flow forecasting and management essential for sustaining operations and financing ongoing projects.
- Work in Progress (WIP): WIP represents the value of construction work completed but not yet billed to clients. Accurate WIP reporting is crucial for financial planning, assessing project profitability, and meeting reporting requirements.