If you work in the building and construction industry and want some advice on accounting you’re in the place. You need to ensure your accounts are completed accurately and within the right deadlines that are set by the HMRC. This is something only a qualified accountant can help with!
Finding a company that knows the ins and outs in the niche is great and will only benefit you! If you’re a tradesman or builder looking for some decent accounting advice check out Tax kings. They have a team of industry professionals that can advise you of common industry pitfalls and obstacles.
Accounting is a difficult task, here’s some tips!
You will probably find jobs vary in size and length. This makes it’s really hard to figure out the exact expense. Job costing is defined as putting all direct and indirect expenses to each job. This will simplify tax prep for accountants.
Cash basis accounting is really easy and a pretty simple method to use in the construction business. Revenue is collected and recorded but you have to allocate expenses evenly over the whole period of benefit with a multi-year contract. Construction companies can’t use cash basis accounting on tax returns if materials cost more than 15% of the total cost, however, if your business doesn’t make more than one million dollars in revenue a year – you’re exempt from this rule.
Completed Contract Method
Using this method no income is reported on any financial statement until the project is finished. This is best for short-term contracts.
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