Everything You Need to Know
If you have just set up a construction business or are thinking of doing so, then it’s easy to assume that you don’t need specialist financial help until further down the line. A regular accountant can give you the support you need right now, surely! That isn’t the case, and many business owners have found out the hard way. Here is why you need to talk to a construction accountant Essex business owners trust right away.
CIS and what it means for you
One of the biggest reasons to hire a construction accountant is the Construction Industry Scheme (CIS). All contractors must be CIS registered by law, and you need to deduct tax from subcontractors and report those payments to HMRC every month. How much you deduct will range from 0% to 30%, depending on whether your subcontractors are registered with CIS or not, and if they have gross payment status.
Any mistakes and money owed will be your responsibility, which is why it is important to bring in an accountant who can make sure that you are correctly registered and all appropriate deductions are made and reported to HMRC on time.
Cash flow
Cash flow is a totally different beast in construction. You may well be dealing with multiple jobs at once, and without a healthy cash flow, you will not be able to take on new projects and pay subcontractors for their work. Poor cash flow can be down to all kinds of things. Slow invoicing, costs of materials and paying your bills too early can all leave you short. The right accountant will be able to take a look at your books and see where you are going wrong. They’ll then put a tailored strategy in place.
Supporting you as you grow
If you want to take your business to the next level, it is important to work with a team who knows how to steer your finances through periods of growth. With multiple projects running at the same time, all with their own financial and tax demands, it can be hard to keep on top of everything. With the right accountants in your corner, you will be able to ensure that everything is on track.
Dealing with HMRC scrutiny
The construction industry and HMRC have a little bit of a tricky relationship. Due to a history of non-compliance from businesses in the sector, HMRC are very strict when it comes to construction firms. This means that you can expect a lot more oversight, and for innocent mistakes to be noticed right away! The right accountant will always ensure that you are operating in line with all HMRC regulations, leaving you with nothing to worry about.
What to do next
As you can see, a construction accountant is able to provide support that is tailored to your needs. So why not get in touch with a trusted team in your area today? They will be able to help you get your finances in great shape and put together a plan for long-term success.
