If you are an individual who is associated with the construction sector and run your small business in the building, you must have an idea of how challenging the management of bookkeeping and accounting can become. You have to keep up with the requirements of HMRC that they require every month as well. Especially when you are dealing with several building projects, it’s a hard task to manage different construction sites and the staff you have hired. Finding a smart way of accounting for small construction companies can make work a lot easier and doable.
If you are trying to maintain your accounts manually in such a scenario, you are clearly in trouble. As this is time-consuming and frustrating to go with old ways like excel and other manual methods. What you need is to play smart and save your time and energy to invest more productively to grow your business. This problem can be solved if you get your hands on learning cloud accounting software.
Xero is one such practical solution that can solve your accounting problems swiftly. This will help to manage several requirements on the same platform and hence a good way to reduce your burden. In this blog, we have gathered the key features that will help you to realise how Xero can be a help to streamline your business requirements.
Reach out to one of our accounting experts to know more about the accounting solutions if you are associated with a small construction company. Call us on 02086868876 or email us today. We will offer instant help!
Accounting for Small Construction Companies
As discussed above how challenging and time-consuming it is to maintain the accounting records with the old orthodox ways. It can frustrate you to a level that you are left with no productive energy to invest in your business. Nowadays people believe in working smart than working hard.
Xero is the best solution to all the frustrating accounting issues for small construction companies. The key factors are listed and explained below for your information.
Easy To Access
Cloud software like Xero is easy to access from anywhere, even from your smartphones or tablets. It makes the access super handy and you can do it any time it is required no matter at what site you are working. In case you are a site manager who is out in a remote area, you will be still able to log into Xero to get to know about the updated details to ensure that things are under control.
The above mentioned are a few out of many reasons that make Xero a great beneficial source for the individuals associated with the small construction companies.
The Documentation of Construction Projects
Most construction projects require a longer period to be completed. The documentation of these years is an important and time taking task. However, with the help of Xero, the documentation of all the projects will be recorded through scanning in the software and linked with the transactions as well.
The receipt of money from the customer can be linked with the accurate period. You will have to drill down to the relevant phase to get the relevant access to the documentation. This sets you free from worrying about the missing paperwork and the frustrating stuff of keeping the manual documentation.
Business Mileage Tracker
To keep a track of the business mileage is vital for accounting for small construction companies. Previously it was quite time-consuming and a challenging task to be considered. This task’s work efficacy is increased by the feature of a mileage tracker in the case of Xero.
You are only required to add the details of the initial and ending date, you will automatically get the calculations of the mileage. Moreover, the powerful analytical capabilities of the tracker will help you to get the mileage rates and you will be informed by sending the notifications as well.
Cost of Construction Project
In case a business is handling construction projects with several sites at the same time, you must maintain a well-organised track of all the costs involved in each project. This helps you to ensure that any unbudgeted cost is avoidable and identified on time to rectify.
The in-built tracking module of Xero helps to allocate the cost of each project and this will help to avoid the mixing of costs while you are handling multiple construction sites. This allows you to generate on a weekly as well as a monthly basis, just like you require for your project. The helps in management at decisions to prove right and favourable. Keeping track of losses and profits of all the profits individually will be beneficial for the future of the business.
Construction Industry Scheme (CIS) Tax
Construction Industry Scheme (CIS) is a built-in feature in Xero. The important features relevant to this are given in the following:
- The calculations of CIS Tax
- The filing of CIS returns every month.
- A good way of keeping a record of the balance you owe or others owe to you.
- Domestic Reverse Charge Automation
The Bottom Line
Now that you have gathered a fair amount of information about accounting for small construction companies, we can bring the discussion toward wrapping up. We can sum up by saying that accounting management for construction companies is a great deal and a time consuming task. Previously it was hard because of the old ways of maintaining the records. However, Xero provides a platform that not only offers easy access to all the documentation at any required hour but works smartly to save your time and energy.
Moreover, this will spare you to focus more on your business growth and you will stop worrying about the paperwork or missing old documents. We hope these few minutes of reading will help you manage the accounting issues of your construction company efficiently.
Are you stuck with your accounts? Why don’t you speak to our young and clever team members and get your queries answered quickly? Call us on 02086868876 or email us today.
Disclaimer: The information about accounting for small construction companies provided in this blog including text and graphics is general in nature. It does not intend to disregard any of the professional advice.