Accounting and Bookkeeping Services for Construction companies
You own a construction company and contribute to the economy's progress in a variety of ways. You deserve to be affluent because you add so much worth to the world. You should be able to do the following:
- Maintain a record of where your money comes from.
- Have a thorough understanding of your spending.
- Keep track of all your project expenses.
- Get accurate tax returns on time.
- Understand why your competitors make more money than you despite the fact that you both do the same work.
But how exactly? Only by careful and thorough bookkeeping.
Simply ask yourself the following simple questions:
- When was the last time you talked to your accountant?
- What if you're simply overspending on your expenses?
- Are you unsure if you're gaining or losing money as the owner of a construction company?
- What if you're making judgments based on erroneous financial data?
If all of your responses are negative, all you need is a professional accounting company to develop and maintain correct and full accounting records for your organization, which essentially implies that your business choices are based on dependable information.
Nadeem And Umendra Chartered Accountants can assist you in managing your books in a fast and correct manner, allowing you to focus on developing your business rather than expanding your in-house finance team.
What sets construction accounting apart from other industries?
The construction industry is a separate business practice that differs from all others in every manner. Construction bookkeeping is quite complicated because:
- Construction contracts, unlike other commercial activities, take years to finish, and the bills produced have a long credit term. This makes keeping track of payments, receipts, retention money, or retainage withholdings difficult. Only a qualified team of accountants can assist you in filling all of the gaps.
- Project Influenced: Your company is built on project contracts that include labor, production, or billing. Profit margins determine your lively hood and sensible bidding. To manage specific task expenditures, this extreme project-wise financial concentration necessitates highly accurate recordkeeping.
- Dispersed Production: As a construction business, you have many projects and hence multiple locations. Moving equipment and workers on a regular basis raises mobilization expenses. Production is less predictable, and expenses fluctuate, necessitating a more rigorous tracking system.
Nadeem And Umendra Chartered Accountants recognize that you don't just need a bookkeeper, but a team of highly experienced specialists. Our construction industry knowledge can help you make the best decision.
Is it a good idea to outsource construction accounting?
Consider the possibility that your company's expenditures are under-reported or are being recorded in the incorrect category, resulting in a profit when it actually is a loss. All of this time, you may have been making bad financial judgments.
- You aren't receiving weekly or monthly financial reports on schedule.
- You're having trouble finishing the audits on time.
- Your audited financials contain a plethora of reclassification notes.
- You are not given an accurate list of debtors or creditors.
- Your jobs are being assigned to the incorrect projects.
- Your accountants are unfamiliar with construction accounting.
- And if you believe you can no longer depend on your in-house financial data.
Then you'll need someone who can:
- Can keep track of proper payments, preventing late contractor payments and delinquent bills
- Does efficient job costing – avoiding loss on a finished work
- Experts in inventory management — preventing over/understocking,
- Understands tax filing and how to avoid penalties and fines
- Knows the fundamentals of construction accounting
Our extensive construction industry knowledge can assist you in mitigating all of these problems so that you may emerge as leaders.
Our Construction Company Specialized Services Include:
We have worked with construction industrialists for many years. Our sector-specific bookkeeping and accounting services have not only enabled us to create accurate books, but have also assisted our customers in growing their businesses and increasing earnings by making sound financial decisions. Our goal is to:
Not to find clients for our services, but rather to provide services to our customers.
Our construction-related services are briefly described below:
- Create a series of journals for effective daily transaction recording of accounts receivable, payables, supplies, job expenses, equipment, rent, utilities, and so on.
- Deposits and Retention Tracking: Keeping daily records to track project-wise payments of invoices made on a regular basis as they are sent or received throughout the task. Keeping track of different project records to ensure that nothing is lost.
- Keeping hard or soft copies of all your transactions and records as a backup. Providing you with maximum storage and backup via digital copies on cloud-based technology, allowing you to access your data from anywhere, at any time.
- Job Costing Data and Analysis: Job costs are accurately recorded by classifying particular projects, cost activities, and cost kinds. Producing extensive information to assist you in improving budgeting and project estimations.
- Billings for Construction: Using specialist software to organize, track, and record billing procedures on a project-by-project basis (point-of-sale billing or fixed price billing).
- Construction Accounting Software Installation and Management:
- Choosing the best accounting software for your company, such as SAP, Oracle, and others.
- Accounting software installation and configuration.
- Customization of software to satisfy individual needs.
- The system is configured to create automated VAT reports for submission to the Federal Tax Authority.
- Customization of the system to automatically reconcile with the Federal Tax Authority and the Federal Customs Authority.
- Create informative layouts for bills, invoices, organizational data, and the chart of accounts.
- Initial and ongoing Chart of Accounts setup, properly classifying all project transactions,
- Transactions are recorded in a single, centralized location.
- Management reporting templates (monthly, quarterly, and yearly) tailored to the needs.
- Assist with the Online Conversion of Accounting Software:
Most construction firm owners are aware that their present accounting software may not be the ideal choice, but they are hesitant to switch to the best option owing to all of the hassles. Through the following services, we will successfully transfer everything from one program to another that is most suited to your construction business:
- Depending on the requirements, migration of the entire business's history transactions or merely the audited balances is possible.
- All information from bank accounts, credit cards, and other accounts is transferred. Customer master data as well as creditor master data migration.
- Financial year-by-year reconciliation of transferred data with prior accounting software and audited financial statements.
- Business Transaction Analysis:
- Bank transaction reconciliations are performed on a daily basis.
- Provide thorough job-by-job costs to have a better understanding of your business.
- Categorizing projects by area to determine project progress, profit, or loss
- Creating a precise analysis of project-specific task costs so you have a clear idea of your company's expenses and income.
- Effective daily customer/vendor sales/purchases recording
- Monthly project expenditures must be kept up to date.
- General overall shared expense must be maintained.
- Monthly costs of general overheads, wages, and other overheads are maintained.
- Cost allocation by job for comparing the expenses of various projects
- Refund allocation for canceled sales/purchases
- Appropriate revenue recording in accordance with IFRS 15
- Refund liabilities must be recorded accurately.
- Accounting software training for the client's finance staff Monitoring of system anomalies
- Cash withdrawals are recorded.
- Accurate computation of tax liabilities by taking into account tax reliefs as defined by local legislation.
- Tax returns must be filed on time to avoid penalties or late filing fees.
- Reconciliation of tax according to books with tax according to authority records
- Tax responsibilities must be paid on time.
- Management of Construction Materials and Orders:
- Material tracking for projects is recorded and set up in accounting software. Effective sales and return recording to create accurate building material re-stock numbers
- Reconciliations of materials consumed and jobs done on a monthly basis
- Separate recordings of usage by project,
- Separate computation and recording of material/articles that are no longer in use, have become outdated, or have been destroyed.
Nadeem And Umendra Chartered Accountants, like the Big 4, is a construction accounting firm. We will not only provide precise bookkeeping, but we will also assist with strategic planning and analysis through extensive reporting:
- Customized Cash in Hand Report: Informs you of the available cash in your firm that may be utilised for any reason.
- A balance sheet is a report that shows the present state of your assets, funds, and obligations.
- Accounts Payable Report by Vendor: Provides information about each vendor to whom you owe money.
- Accounts Receivable by Customer: Displays daily/monthly customer-specific money receivable for all current and former jobs.
- Job Profitability Report: This report gives you a clear image of your most lucrative projects as well as the areas where you're losing the most money.
- Job Profitability Summary Report: This report offers customer-specific profits gained from each service for the period range you specify, as well as a list of the most and least profitable clients.
- Job-wise Profit and Loss Report: Displays job-by-job profit and loss for a certain period range, identifying the most and least lucrative jobs.
- Unbilled Expenses by Job Report: Lists all unbilled costs attributed to specific tasks or clients, as well as the complete billed and unbilled status of all projects.
- Unpaid Bills by Job Report: Lists unpaid bills by client and job. Aids in the start-up of a Pay-as-Paid analysis, in which you pay vendor bills for a specific work after receiving money from the specific client.
- Task Estimate Vs Actual Summary Report: A summary comparison of expected costs and revenue with actual costs and revenue for each client or job, aiding in future estimating accuracy.
- Work Progress Invoices vs Estimates Report: A comparison of progress invoices and estimates for each job, including active estimates and the percentage of estimate invoices on progress invoices.
- Open Buy Orders by Work Report: Displays pending purchase order line items for a certain client or job, as well as their estimated delivery dates.
- Vendor-wise Task Costs and Job Summary Report: It gives project-specific job expenses that are subtotaled by vendor, allowing you to classify subcontractor invoices, labor costs, and material supplier purchases for each particular job.
- Unassigned Expense Report: It lists the expenses that have not yet been assigned to any client or work, allowing you to analyze and distribute charges.
- Work-in-Progress (WIP) Costing: It is a unique custom report that displays the work in progress for each project, allowing you to keep track of project progress, costs/revenue to date, future estimated costs/revenues, and so on.
- Monthly Project-wise Comparison Report: This report allows you to see month-to-month changes in several jobs/projects.
- Monthly Controls Review Reports: A report that evaluates existing controls, systems, and standard operating procedures and makes recommendations to enhance them.
- Revenue Report by Zone/Area: This report helps you to target the most profitable construction sites.
- Job-by-job comparison with competitors: This allows you to examine market competitiveness and, more crucially, how your customers perform on similar jobs.
- Year-to-Year P&L Comparison: A fantastic tool for comparing your company's financial performance to previous fiscal years. For example, compare income and expenses from January to December 2019 to January to December 2020.
When you work with us, we handle your books from start to finish. We will manage the following on a daily basis:
- Credit card administration
- Payroll administration
- Accounts payable (Creditors) management
- Accounts receivable (Debtors) management
- Management of cash flow
- Accounting software support and administration
- Preparation of inventory statements
- Management of financial accounting and reporting needs
- Calculation and completion of tax returns
- Accounts receivable (Debtors) management
- Detailed reports for business analysis (Take a look at our section report generating)
- International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) compliance
- Reconciliation of bank balances according to books and bank statements
- Preparation of balance sheets and revenue statements
- Actual financial reports vs. budgeted financial reports
- Detailed performance evaluations
- Budget monitoring that is effective
- KPIs and scorecards for construction projects
- Operational audits and evaluations
- Assistance in succession planning,
- Helping with draw requests and payment applications
- Accounting for non-current/fixed assets and depreciation,
- Planning, consultation, and strategy development,
- Market segmentation analysis
Why should you use Nadeem And Umendra Chartered Accountants?
Construction accounting is separate from other types of accounting. Because of the large value of the projects, bookkeeping accuracy is critical. Wouldn't it be great if you could get more from nice clients while getting rid of the ones that cost you money? We will slice and dice all of your company data for you so that you can:
- Determine your most valued clients.
- Be proud of your earnings.
- Assist you in managing your financial flow so that you may better plan your future spending.
The Top 10 Strategic Reasons to Hire Nadeem And Umendra Chartered Accountants:
- Accounting experience in the construction industry of at least ten years.
- More than 20 years of expertise auditing construction enterprises.
- Experience in international taxation of at least 20 years.
- Any accounting or ERP system can be utilized or implemented.
- Audit/Accounting Partners work closely with the client to ensure that their financials are constantly in a sellable state for potential buyers/investors.
- The team includes qualified Chartered Certified Accountants, Chartered Accountants, Certified Public Accountants, and experienced fraud examiners.
- Collaboration of regional offices across continents to deliver integrated financial services.
- Accounting and audit managers from Big 4 firms supervise the assignments.
- In-house and external trainers provide ongoing ethical and professional development to all staff members.
- Outstanding assistance from active and internationally respected Accounting and Audit Partners.
The following are the top ten operational reasons for appointing Nadeem And Umendra Chartered Accountants:
We are Construction Accountants and Bookkeepers, not just typical accountants or bookkeepers. Along with the big four, our specific team of construction accountants is the only one in the UAE.
- Accounting Software Experts with Construction Industry Experience
- Decision Making: Prepare customized financial reports for clients and offer them to them. Only meaningful and accurate reporting allows for well-informed judgments. We will convert all of that complex data into meaningful reports, allowing you to make the best decisions for your company.
- Project Management: We are really good at project management. We have the proper personnel for the job, with the right experience and ability to manage all of your huge project paperwork. Allow us to handle all of your budgets, proposals, contracts, progress bills, and reporting needs.
- Subcontractors Management: One of the additional benefits you will receive when working with us is proper subcontracts management. You wouldn't want to overpay, would you? We can help you avoid this by documenting all of your subcontract expenses and ensuring that you are in compliance and adequately protected by your Worker's Compensation, General Liability, and any other insurances.
- Inventory Management: Inventory management is another critical operation that we handle using software. We will configure your inventory levels in the system and activate auto alerts to allow you to take action when you reach a specific stock level, such as the inventory re-order level. We also make certain that your inventory are up to date.
- Training: We give frequent training to your employees so that they can utilize the system and create general reports for day-to-day use.
- Assistance in Obtaining Business Finances: Each investor has a particular set of financial requirements before they will fund your company. Audit reports, business value reports, and other similar documents fall within this category. We shall prepare any investor-requested reports.
- Legal Requirement: UAE law requires firms to properly maintain their financial records and preserve them stored (hard/soft) for any regulatory examination. Compliance with these requirements is critical in order to avoid large fines and perhaps the termination of your company license.
- Financial audits: We guarantee audit completion within one month after the end of the fiscal year.
- Tax Reports: We create your tax reports, reconcile them with regulator data, submit the returns, and guarantee payment is made on time against the tax due.