Hiring a full-time accountant is an expensive cost which many construction companies can’t afford. Between payroll taxes, benefits and other costs of hiring an employee, it may not seem worthwhile. Plus, you already plenty of people to manage between jobs crews and clients. But is avoiding hiring an accountant actually costing construction companies money?
Smart businesses know that outsourcing is an excellent alternative to hiring an employee. Outsourcing is convenient and affordable for companies from many different fields, including construction. Outsourcing allows you to retain the expertise of a financial professional without having to pay for a full-time employee’s benefits.
The right accountant understands construction is complex
Construction accounting is a complex job that requires managing many moving parts at once. Some of the financial benefits a construction accountant can provide include:
Establishing systems for generating accurate job costs, billing and work-in-progress reports
Knowledge about wage reporting and payroll specific to the construction industry
Generating reports that provide better insight into the company’s finances
Strategies for avoiding costly oversights and missed opportunities
This expertise will better help you to complete projects on time and under budget, plan for your business and secure financing from banks.
Set up accounting software to better track jobs
An accountant specializing in construction can help you set up all the information you and your team need within the accounting software for each job. Each job should be tracked separately to determine the project’s profitability. With accurate software, you can track job progress, change orders and cost overruns. You can also use all the job information to generate quotes for similar jobs and better inform your financial forecasting.
Manage cash flow
With one person dedicated to reviewing the books, you’ll know someone is ready to flag when clients aren’t paying, and accounts receivable is getting low. Your accountant will keep you updated on your business’ current cash position and help you plan for future projects so that you always have enough cash flow.
Comply with regulations
Construction is a field governed by many rules and regulations, particularly as they relate to workers. An accountant with construction experience is familiar with wage laws and workers’ comp laws to keep your employees paid fairly. He or she is also familiar with sales and income tax codes which will help keep your business in compliance and avoid costly fines.
Secure you more financing
Having an accountant in your corner when asking a bank for financing will help you secure what you need. Accountants will provide timely and accurate financial statements reflecting your trustworthiness for a loan. They can help answer any questions the lending company has while you’re going through the process. A skilled accountant will help banks feel confident in lending money to a company that takes its finances seriously.
If you’re interested in learning more about how an outsourced accountant can help your construction company, our financial specialists are ready to help. Contact Patin and Associates today to get started.