Bookkeeping for the construction sector: what you need to know

bookkeeping for construction developer

Ian has extensive knowledge of the Care Home sector enabling him to advise his clients on the constantly changing regulations and tax incentives available. James joined MHA MacIntyre Hudson as a Partner in 2022 and specialises in providing business, tax and advisory services to companies and individuals. Although an audit partner Brendan has led our Construction & Real Estate sector for many years and has built up a wealth of knowledge which he uses as the basis for strategic advice within the sector.

This is a form of accounting that uses the construction contract as the basis of the accounting – which is to say, revenues are projected based on the likely costs. When third parties review finances, the main basis for their decision-making is typically a construction firm’s working capital ratio—the central indicator of the health of your business finances. Firms are increasingly being hit by legislative accounting requirements, which not only impacts construction accounting but effectively defines how it’s done. But taking control of construction business finances is vital not only for a healthy business today, but plays a part in empowering sustained growth in the long term.


We partner with businesses to identify ways to streamline their accounts and make their businesses more profitable. Or through corporation finance, looking at business growth or other business developments. The PKF Francis team of chartered accountants have an unrivalled range of knowledge about the construction & property industries. Whether you are buying commercial or residential real estate, and have long term investment, development or buy-to-let motivations, we have an accountant who can help you maximise your investment.

The impulse to handle your accounts on an ad-hoc basis might be a short-term time saver. The needs of construction work mean different kinds of accounting processes need to be used. For example, if at the end of the year your firm has £1m in current assets and £500,000 in current liabilities on your year-end balance sheet, you have working capital ratio of 2-to-1.


From professional bookkeeping to construction audit, we can provide you with the tools and accountancy services you need to make confident decisions to support the ongoing growth of your building business. Our team has extensive experience of working with those in the construction industry, and our expertise andrange of serviceswill ensure your accounts are managed to the highest standards. While these factors are out of our control, smart business and accounting advice can help your construction business flourish where others do not. From cash flow and tax advice to support with the CIS, we help ensure that your business is fighting fit for the future. Whether you’re a property developer, self-employed contractor, or property investor we can deliver everything from tax planning, bookkeeping, accounts preparation, VAT services and Construction Industry Scheme returns.

  • We advise all sizes of property and construction businesses ranging from overseas individuals investing in UK property for rental, through to large multi-national property investment and construction groups.
  • Better finances mean greater buying power which in turn can ensure land is more easily obtainable, opportunities actionable, and therefore decisions are not taken out of the business’s hands.
  • At Pierce, we are proud to have offered accountancy and business consultancy services to the construction industry, property investment businesses, and property developers for over 25 years.
  • Higher ratios indicate the company is being financed by creditors rather than from its own financial sources, which could send up a few red flags.
  • Some of the biggest tax changes in recent years have impacted overseas investors of UK property bringing them into the UK tax regime for the first time.

Having experienced the boom and almost bust of the Sector he founded Merranti Accounting so that he could supply industry-specific accounting knowledge. He has now built a team of like-minded and experienced property and construction accountants, and consultants. The impact retail accounting of the Construction Industry Scheme on construction services is also likely to be relevant and important. This may dictate how individuals and businesses involved in the construction suffer tax and places additional requirements upon the main contractor or developer.

Industry insights

Our offices will be closed from 1pm on Christmas Eve, reopening on Tuesday 4 January. As a keen sportsman Ian believes that the same teamwork and competitiveness employed on the sports field can translate to an equally effective strategy for success in business. Brendan relishes the opportunity of helping clients to develop, and looking for the opportunities that motivate them to do so. If you have paid Construction Industry Scheme tax and are due a rebate, we understand that it can be a frustrating process to secure your tax return quickly and correctly. Whether you are a small or large firm, you are operating within a fast-moving and dynamic industry and it’s important to not let your accounts impede your work.

  • Keep track of your team’s leave, absences payroll and more with our integrated solution.
  • We will help you optimise property tax outcomes through tax structuring and compliance and advice on Capital Allowances, Land Remediation Relief and SDLT, Construction Industry Scheme and VAT.
  • If you are the main contractor, you need to ensure you deduct CIS tax from your subbies, at a rate of 20% or 30%.
  • Autumn Statement 2022 A review of measures for UK businesses and individuals.
  • Comprehensive document management on the full sales process from offers to completion.

You can add subcontractors as vendors to bill them for their services and add contractors as customers to send them invoices. This allows you to manage all of these transactions and payments with ease from one dedicated space within Zoho Books. We have just started using Livingstones Accountants and we can immediately see the difference with the services provided by them and our previous accountants.We … Reviewing and advising on capital gains tax issues before the sale of your property. Our team have extensive experience and specialist knowledge about the rules and obligations around CIS. They can perform a CIS Health check on your business and help you avoid any penalties or punishments from HMRC.

Leading industry advice to help build your business upwards

This helps him to tailor his advice specifically to the individual’s own personal and business aspirations. Well known within the local business community and working with a wide variety of companies, Ian endeavours to nurture their entrepreneurial spirit and steer his client’s businesses to their end goal. With a keen eye on his sector specialisms of Transport & Logistics, Healthcare and Property & Construction, Ian is able to provide companies with the in-depth knowledge and advice they require to grow and develop. Rob joined MHA MacIntyre Hudson Corporate Finance in April 2020 to lead the Transaction Services team. Rob has over 15 years’ transaction consultancy experience, with considerable knowledge in global markets. He specialises in advising mid-market businesses, corporate clients and financial institutions, in their assessment of acquisitions and divestments, as well as assisting organisations on their journey to initial public offering.

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