You know that in order for your business to run smoothly you need to pay your suppliers and your staff on time, not to mention issuing invoices and keeping on top of your cash-flow to fund equipment and materials. The problem is, when it comes to choosing a bookkeeper to help you, how do you know they’re up to the task?
We always advise clients to choose a bookkeeping practice with experience in your business sector. The basics are always the same, but the industry specifics can vary widely. Here’s a few tips on what’s most important for construction businesses based on our years of experience with construction clients:
1. VAT & CIS
The rules on VAT change depending on the building job and this has led some construction businesses into trouble with the tax man.
VAT is not chargeable on New Build properties and if you’re converting an existing building the VAT rate is only 5%. Then there’s other building work where the full VAT rating applies. It pays to have an experienced bookkeeper on board, who knows their way around the VAT regulations for construction businesses to save you from costly mistakes.
Staying on the subject of tax, there is also Construction Industry Scheme. Your company must keep adequate records and ensure all the correct payments and deductions are made to any subcontractors. Having a bookkeeper experienced in managing CIS on your side makes it all much easier.
2. Vehicles & Machinery Assets
If you run a construction business you’ll have company vehicles and large machinery. Your choices on leasing, purchasing and depreciation policy make a big difference to your annual budget-lines and you need a long term view to get the most value from your assets.
Figures and forecasting may not be your area of expertise, but they’re a core part of a bookkeeper’s toolkit. We strip out the jargon and give you a simple view of your choices so you can see what is best for your business.
3. Onsite vs the Office
Naturally, you spend a lot of time on a building site. That’s what your business does! The more time you need to spend in front of a computer, the less time you have to keep all your projects on track. New software designed for small businesses allows you to check supplier payments, issue invoices and review the state of your finances from your smart phone.
Team4 offer advice and training on software for small business accounting. We can get you set up with systems that are easy to use and save you time by letting you keep track of your financials on the go.
If you’d like a bit of advice, give us a call!
Get your record keeping running smoothly so you can focus on looking after customers and keeping your business profitable.
We’re always happy to chat over a coffee to see if we can help. If we think you’re fine as you are, we’ll be honest and tell you that. Call or email Diane on 01825 763378 or firstname.lastname@example.org to get in touch.