The financial world can be challenging for builders and self-employed contractors. The construction industry is complex and those in it will often find it easier to manage by seeking financial advice. We offer expert insights on accounting for builders in this blog.
Accounting for builders
Accounting is of utmost importance for those in the construction industry. As well as managing their finances, builders have to spend time getting work, maintaining contacts, and completing various jobs to the satisfaction of the client. Many find themselves randomly managing their accounts whenever they have time, with no long-term goals or regular financial check-ins.
Construction accounting for builders is vastly different to other forms of accounting. There is rarely a fixed business structure. Many projects have flexible end-dates, multiple moving parts, and numerous contractors and sub-contractors to manage. This makes it difficult to keep track of and stay on top of everything at any one time.
Why is it important to effectively manage your finances?
Keeping organised, clear accounts is vital for ensuring that you are putting your time and energy into your job, and what you love to do. Getting paid and ensuring that you have a steady flow of work is crucial. Time is money, so be sure to spend yours wisely.
You do not want your days to be taken up with reorganising and going over endless accounts. If you have your finances managed effectively in the first place, you will not have to worry about this. You can reallocate the time you would usually spend going through files to reaching out to new customers. Accounting for builders can vary significantly depending on changes to laws and construction regulations around the world. By staying aware of this you are avoiding any nasty fines and are proving your expertise in the field.
How do I stay on top of my finances?
It can be challenging to manage your finances alone, without the help of a professional. But there are steps that you can take to get them better organised and under control.
Firstly, sort out your paperwork. Whether this is digital or physical, it is important to look at your records and get them in order. You don’t want to miss a key piece of data or an important invoice. From this, you will be able to track and analyse your accounts, create estimates, and set goals.
Consider putting aside a day a week or a month to go through all of your finances. By having a more streamlined accounting system in place, you can eventually work to improve your operations and project management. Whether you are self-employed or have a team of people to manage, this will eventually make your processes more efficient and run smoother. It will also save you time in the long run.
When do I need to seek advice?
If you find yourself struggling with managing your finances on a regular basis and do not feel on top of your accounts, it is best to seek advice from an experienced professional. Many professionals have extensive knowledge of accounting for builders and managing finances for construction workers or businesses. It is always best to contact an accountant who has previously worked for clients in the industry compared to one who hasn’t.
It is an indication that you may be unproductively managing your accounts on your own if you spend a lot of time creating invoices instead of taking on new jobs. Invoices can be automated and made virtual through most accounting software.
Great accounting software can help you and your business streamline your accounts. At Steele Financial we work with Xero, a cloud accounting software that even has an app. If you don’t currently have accounting software that works for you, we can help you make the move to Xero. If you have never used accounting software before, this is something you may want to consider. No matter how small your business, they can be really useful in helping you stay on top of everything.
How can an accountant help?
Building schedules can be complex and unpredictable, which is why you need an accountant who has experience with accounting for builders and other tradesmen.
Read more about what an accountant for tradesmen does and how they can support you. From bookkeeping help to valuable forecasting, and ensuring HMRC compliance, a great accountant will help you stay on top of your finances.
Through advising you and taking care of your finances, an accountant is able to take this stress and pressure off you. This will benefit your health and productivity. You will no longer have to worry about missing key dates in the financial calendar and keeping up with any legal changes.
Accounting for builders doesn’t have to be complicated. Speak to our team of experienced Bristol accountants to find out how we can help you.