Accounting and Bookkeeping Services for Construction Companies
Transform your finances with our expert accounting and bookkeeping services for construction companies. From job costing to progress billing, our experts ensure accurate financial reporting, cash flow optimization, and regulatory compliance.
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Streamline Outsourced Accounting & Bookkeeping for Construction Companies with Invensis
We have over 25 years of experience in delivering accounting services for construction companies worldwide. Our services encompass various critical functions, including project accounting, financial reporting, and compliance management. We utilize advanced construction accounting software to track job costs, manage budgets, and ensure accurate allocation of resources, which is essential for maintaining profitability and financial integrity.
One of the major challenges in construction accounting is managing work-in-progress (WIP) calculations. We address this by carefully tracking project progress and evaluating both direct and indirect costs to ensure precise job costing. Through sophisticated methodologies like the percentage of completion and completed contract methods, we provide clients with a clear view of their financial standing at any point in time.
Our approach to accounting and bookkeeping for construction companies & contractors is characterized by a proactive and collaborative strategy. Our construction CPAs work closely with project managers and stakeholders to ensure that financial data is seamlessly integrated into project planning and execution. Regular financial reviews and forecasting meetings enable us to identify potential challenges early and recommend solutions. This partnership fosters a culture of financial accountability, ensuring that our clients can achieve their project objectives while maintaining financial health.
As an experienced provider of construction accounting services, we at Invensis assist construction companies in achieving financial management in the following ways:
- Automating data entry processes to reduce manual effort and minimize errors in tracking expenses, invoices, and payments across various construction projects.
- Implementing accounting and financial management software for construction accounting for real-time tracking of project costs, budgets, and financial performance from anywhere, ensuring accurate and timely data access.
- Centralizing expense tracking for tools, equipment, and materials, allowing better visibility and control over construction project expenditures.
- Integrating construction-specific job costing methods to ensure precise allocation of labor, material, and overhead costs to individual projects.
- Monitoring compliance with tax regulations and industry standards to avoid penalties and maintain smooth financial operations.
- Simplifying payroll management by integrating a construction accounting system that tracks labor hours, wages, and project-specific pay rates, ensuring accuracy in employee compensation.
- Utilizing progress billing to match revenue recognition with project completion stages, ensuring accurate financial representation throughout the construction lifecycle.
- Standardizing financial reporting formats to provide consistent and clear insights into project profitability, cash flow, and overall financial health.
Our Comprehensive Construction Bookkeeping and Accounting Services
- Accounts Payable
- Accounts Receivable
- Payroll Processing
- Equipment and Asset Management
- Project Cost Accounting
- Contractors Chart of Accounts
- Contract Revenue Recognition
- Change Order Tracking
- Job Cost Tracking And Analysis
- General Ledger for Construction Firms
- Financial Analysis and Reporting
- Cash Flow Management
- Project Budgeting And Forecasting
- Subcontractor Payment Tracking
- Equipment and Inventory Management
- Labor Allocation Tracking
- Construction Audit Services
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Local Client Testimonials
During your consultation, some of the issues we can discuss are:
- How we deliver accurate job costing analysis, breaking down expenses by project, helping construction firms bid more competitively and manage their margins effectively.
- Our strategies to provide customized financial reports to make informed decisions, forecast future projects, and monitor the company’s financial health.
- How we streamline payroll for efficiency, including handling union requirements, benefits, and contractor payments.
- Effective cash flow monitoring techniques we use to maintain liquidity and prevent delays caused by mismanaged funds or unexpected expenses.
Invensis - The Most Trusted Construction Accounting and Bookkeeping Company
Invensis is a trusted provider of bookkeeping and accounting for the construction industry. We have more than two decades of experience in delivering accounting requirements for construction companies and contractors. We specialize in managing job costing, including labor, materials, and overhead allocations, which is critical for maintaining profitability in competitive bidding environments. Our construction bookkeeping services team is proficient in handling construction-specific financial management software, enabling real-time updates and seamless integration with existing systems. With our accounting services for construction companies, our clients benefit from reduced financial discrepancies of up to 30%, improved cash flow management of nearly 25%, and enhanced project profitability by up to 20%.
The following are the benefits of hiring an external outsourced construction accounting business:
1. Managing Complex Project Accounting: Construction companies deal with multiple projects simultaneously, each with unique financial tracking needs, from materials to labor costs. Keeping track of cost allocations across projects, timelines, and clients can lead to inaccuracies and delays, affecting overall profitability and reporting accuracy.
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Outsourcing a construction bookkeeping service provider ensures that accounting systems are properly set up to track project-specific financials, providing real-time visibility. Construction CPA firms can offer tailored reporting, making it easier to manage construction budgeting and profitability and ensuring compliance with industry-specific financial requirements.‍
2. Tracking Equipment and Asset Depreciation: Construction firms invest heavily in equipment and machinery, making asset management and depreciation tracking essential for accurate financial reporting for construction. Failing to properly account for depreciation can lead to overvaluation of assets and skewed profitability metrics.
Outsourcing accounting services for construction companies ensures that depreciation schedules are correctly implemented and maintained, reflecting true asset value. Full-time bookkeepers for construction businesses manage asset records, providing precise depreciation tracking and compliance with accounting standards, improving the accuracy of balance sheets and financial forecasts for the company.‍
3. Difficulty in Handling Union Payroll: Construction firms employing unionized labor must manage complex payrolls, including union dues, benefits, overtime, and compliance with collective bargaining agreements. Mishandling payroll can lead to disputes, penalties, or even legal actions from unions.
An outsourced bookkeeping for construction company with expertise in union payroll can ensure compliance with all labor agreements and regulations. Outsourced construction accountants handle the detailed processing of wages, benefits, and deductions, ensuring accurate, on-time payments while minimizing the risk of payroll errors that could lead to conflicts with unions.‍
4. Maintaining Job Costing Accuracy: Accurate job costing is significant for construction companies, as underestimating labor, materials, or overheads can lead to reduced profitability or even project losses. However, managing detailed job costs across multiple projects can be overwhelming without the right systems.
Outsourced accounting for residential, commercial, or mixed real estate portfolios offers advanced job costing systems that integrate seamlessly with other project management tools. Accounting and bookkeeping services for construction clients provide precise tracking of expenses, labor, and materials, ensuring profitability analysis for each project is accurate and up-to-date, enabling better decision-making and cost control.‍
5. Handling Progress Billing and Retainage: Construction companies often use progress billing and retainage to manage payments based on project completion stages. However, incorrect billing and retainage tracking can lead to disputes with clients and delayed payments.
Outsourced construction company bookkeeping processes manage progress billing and retainage efficiently, ensuring correct invoicing that aligns with contract terms and project timelines. Outsource construction accounting services to monitor unpaid retainage, helping construction firms maintain healthy cash flow while minimizing disputes with clients over billing discrepancies or project delays.‍
6. Variability in Cost Reporting Standards: Construction business owners often need to report financial data differently to various stakeholders—clients, investors, or internal management. Standardized reporting is difficult when each project may require customized financial insights or analysis.
Outsourced bookkeeping services for homebuilders provide customizable, transparent financial reporting tailored to different stakeholder needs. Whether it’s job costing for internal management or detailed project breakdowns for clients, outsourcing accounting services for construction companies ensures that reporting is accurate, timely, and adaptable, enhancing decision-making and stakeholder communication.
Some of the trends in construction accounting and bookkeeping are:
- Digital Construction and Prefabrication: The trend towards digital construction and prefabrication is increasing, aimed at minimizing onsite disruptions and improving efficiency. This method also aligns with financial strategies by reducing project timelines and costs​.
- Underutilization of Tax Incentives: A notable number of construction firms are not maximizing available tax incentives. With nearly 37% of companies failing to leverage various tax credits, there is an opportunity for improved financial strategies to capitalize on these benefits.
- Prefabrication and Modular Construction Accounting: With the rise in modular and prefabricated construction, accounting processes are adapting to track costs and savings associated with off-site manufacturing, leading to more precise cost control​.
- Fleet Management Innovations: Accounting for fleet management costs, such as fuel usage, vehicle maintenance, and depreciation, has become more sophisticated with the help of IoT and tracking software, optimizing transportation costs​.
- Zero Net Energy (ZNE) Project Accounting: The rise of ZNE buildings requires tracking costs related to renewable energy systems and potential savings from long-term operational efficiency. This adds a layer of complexity to the construction accounting processes​.
- Building Information Modeling (BIM) Integration: Integrating BIM with accounting platforms allows construction firms to better track project costs, timelines, and resources, facilitating more accurate financial planning and improved project profitability.
What Our Customers Say
Invensis' auditing and taxation services assisted us in effecting significant changes in the business's focus and nature. They have always provided us with a comprehensive and top-rated service, allowing us to meet deadlines internally and externally.
Invensis has helped us obtain business-critical data on our Accounts Receivable processes. This helped us make good cash flow decisions, motivate our teams, and maintain our focus on profit maximization.
Invensis has been an outstanding business partner for over four years. Our Accounts Payable workflow has generated daily volumes of invoices to be processed, and Outsourced Bookkeeping handles the volume precisely. As a result, it's fantastic to arrive at work every day without any backlog.
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