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Accounting Services for Contractors in 2021

Accounting Services

Accounting Services for Contractors

Accountancy services for builders is a fast-growing field in the UK. Contractors are becoming more in demand of such an agency to manage all accounting duties on their behalf. Contractors may also have various specific requirements for accounting services for contractors in London. Here we take a detailed look at some of these requirements, and the accounting firms that can best cater to your needs.

Accounting Services

Before discussing specific accounting services for contractors, let us discuss the importance of accounting in general. Accounting provides inputs into resource allocation decisions. It also provides information about performance by organizations and government agencies. The need for accounting services for contractors arises when contractors themselves will have to undertake accounting functions. Most often this will include paying taxes. The scope of accounting services for contractors is therefore not limited to financial and tax planning but extends to all areas of accounting.

Business Strategy

In general, the scope of accounting services for contractors includes the preparation of construction estimates, preparing financial statements, and providing advice to management on investment and business strategy. Many construction companies are outsourcing their accounting needs to specialist firms, which in turn assign the work to one or more accountants. It is not uncommon for construction firms to contract their accountancy needs out to experienced third-party accountants.

While contractors normally hire an accountant to conduct their financial reporting and keep them up to date, they do not usually need accounting services for contractors, as the majority of their work is usually done in-house. However, some construction firms will find themselves in need for additional accounting services for contractors when they start to encounter difficulties with their financial reporting or when they start to get audited. Some construction firms have accounting professionals on their payroll – either full time or part time – who are specifically trained to conduct accounting and financial reporting on a daily basis. These professionals may be responsible for preparing the contractor’s schedule, preparing the contractor’s bank statements, reviewing their contractor’s balance sheet and/or cash flow statement, and developing project accounting controls.

Professionals Accounting

Accounting professionals who provide accounting services for contractors are typically independent contractors, although there are some companies who do hire accountants to work within their own firm as an accounting technician or a revenue analyst. In these instances, the accountant works under the supervision of the company’s CPA. In general, the accountant performs a variety of accounting functions, such as preparing the contractors’ balance sheet, reviewing and analyzing the contractors’ cash flows, preparing the contractor’s income statement, preparing the contractors profit and loss statement, and reviewing the construction loan documentation. The accountant also ensures that the construction loan documents are accurate and up to date, and ensures that all tax planning documents are accurate and up to date. Finally, when preparing the contractors’ annual budget, the accountant provides the CPA with the necessary financial documentation for review.

Management Reporting Solutions

A variety of accounting services for contractors are available from a number of accounting service providers. Most provide auditing, internal control, financial reporting, and financial planning/budgeting. Some of these services include risk management, integrated management reporting solutions, and integrated management accounting software. These companies will provide an accountant, a certified public accountant, a chartered financial consultant, and sometimes even a vice president who will manage the company’s business affairs, such as payroll, accounts payable and receivable, purchases, supplies, and vendor accounts.

Other accounting services for contractors that contractors can receive from a wide range of tax services firms include preparing federal, state, and local income tax returns and financial reports. They will prepare these reports according to the particular contracting parties’ requirements. Some contractors will have a separate staff that prepares these federal and local forms, while others will have their own accounting staff that prepares these forms. The company that provides this accounting service may also provide other types of accounting services.

Benefits

One of the most important benefits that we received from a large accounting firm was in the area of risk management. We had several accountants who evaluated the risk of certain projects and advised us accordingly. Without this analysis, our risk management department would not have been as robust as it is today. The benefit also included getting an outside perspective on certain projects which helps the project team to focus on what they can do best and not spend too much time on what they are not good at. An accounting firm also helps us stay up to date on the various accounting matters and regulations which might affect us as a business.

 

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Binta Hawa

BintaHawa has been a part of the journey ever since Healthke.com started. She has a special curiosity for events and stories revolving in and around the world. BintaHawa an uncompromising form of journalistic standard for her audiences.