Construction
The construction business is the activity of designing, building, reconstructing and repairing residential, commercial, engineering or other structures.
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ACCOUNTING FOR CONSTRUCTION COMPANIES
Construction activities cover a wide range of services, from small-scale contracting work to large-scale infrastructure projects. The main features of the construction business are the complexity of projects, the long implementation cycle, the high capital investment and the dependence on regulatory and environmental requirements. The construction sector is also characterised by seasonality, high occupational safety responsibilities and the need to manage both human and material resources to ensure that the project is delivered on time and on budget.
Long-term projects and milestone revenue accounting
Construction projects often take several months to several years. Revenue is often recognised based on the degree of completion of the project and not only when the project is complete. Our accountants ensure that clients’ interim work and related costs are correctly accounted for.
Detailed cost accounting by object
Companies in the construction business usually work on several different projects at the same time. Our accountants provide detailed accounting for each site, creating a client-specific cost centre system, including materials used in the activity, wages, subcontractor services and other direct costs, which helps the business owner or manager to accurately calculate the profitability of each project.
Accounting for subcontractors and VAT exceptions
In the construction business, it is common to use subcontractors, who are often covered by the reverse charge scheme. Our accountants ensure the correct application of reverse charge VAT on both the invoices received and the services provided, as well as the correct declaration.
Inventory and tool accounting
Construction activities use not only materials, but also a variety of tools and machinery, which can be measured as current or non-current assets. Our accountants not only help you manage the consumption of materials in a project, but also record tool depreciation, transfers between objects, write-offs and inventories.
Payroll features
The construction sector often employs a variable workforce, which may be located on different sites. Our accountants organise payroll on a site-specific basis, complying with the Labour Code requirements for overtime, secondments or seasonal work.
Accounting for public projects
Some of our clients are involved in public procurement in the construction sector, which imposes higher reporting and document transparency requirements. Our accountants ensure perfect transparency of documents and financial flows, and prepare additional reports for our clients when required.
Accounting in the construction sector is complex and requires highly detailed process management, from tracking individual project costs to applying specific VAT regimes and targeting income as projects progress.