Are you looking to hire an accountant for your construction business? here are the responsibilities and job description of an accountant in a construction company.
Accounting is a very important part of the management and administration process in any business. In businesses with multiple moving parts, such as construction, the accounting department must accurately track the movement of assets inside and outside the business to ensure transparency and profitability.
So important Note that the role of an accountant in a construction company will not be the same as in a regular company. For example, a business like a restaurant or grocery store uses typical accounting principles. This template is ideal for that type of business that sells products from a specific location. The business understands the value of every item sold, and overhead costs remain relatively constant.
On the other hand, construction companies are mobile and have regularly done individual jobs to new locations. As such, construction companies must control very different categories of costs: travel time, mobilization costs such as tools and packaging equipment, delivery of materials to the site and even clearance of the site. site of excess materials once work is completed.
In a sense, the business has no fixed location and it travels where the customer needs it, with the materials needed to work.
In addition, construction companies also use the percentage complete method, where revenue is recognized based on the estimated contract profit and the percentage of that project that has been completed. This makes it all the more critical as construction companies adopt cost accounting techniques that accurately track their costs to accurately predict profit and loss.
Construction accounting is much more complex than other types of businesses. The ability to track, report, and categorize your construction company’s costs and other expenses is important in understanding how to bid on projects, which projects are profitable for your business, and how to bill correctly and fairly. clients and how to make the most of their opportunities. firm resources.
Here are some of the responsibilities and duties of an accountant in a construction company.
- Provide organization and financial support to the organization, which includes taking charge of general ledger entries, including reconciliation and detail of the income statement in the company’s accounting system.
- Prepare and reconcile income statements and balance sheets on a monthly, quarterly and annual basis.
- Help with budgeting and forecasting.
- Managing relationships with external stakeholders by ensuring that relevant reports and documentation are submitted to the IRS and updated to the IRS.
- Financial management of the company and general accounting.
- Daily monitoring and management of several corporate bank accounts. …
- Assistance in the preparation of annual reports x and other regulations.
- Efficient management of the project budget.
- Ensure compliance of the accounting process with legislation.
- Provide accurate, understandable and timely information to support your management decisions, including analysis and recommendations.
- Supervise the firm’s accountants (if applicable) and create and monitor the accounting system and interpretation of data from accounting activities.
- Apply the construction accounting standards and procedures necessary to record and report construction activities
- Establishment of workstations, budget control, sub-contracts and orders for changes in accounting software.
- Work closely with construction project managers from start to finish to ensure proper and timely accounting of receivables and payables. for.
- Understand the terms of contracts with owners and subcontractors to ensure billing and payments are accurate and timely.
- Understand and maintain standard cost codes in the accounting system
- C Communicate with various finance institutions (ie, title company, escrow company) regarding the payment request process and the requirements for payment.
- Manage the payment and collection of retention fees.
- Check and approve accounts payable weekly for payment.
- Communicate with the construction department and external suppliers and subcontractors by phone and email.
- Prepare the journal entries.
- Help at the end of the month and at the end of the year.
- Assistance in the preparation of monthly financial statements and account analyzes.
- Tracks and resolves banking issues, including fee anomalies, and checks for differences.
- View the account / bank reconciliation.
- Assist in the preparation and coordination of audit and tax reporting processes.
- Assist in the implementation and maintenance of internal financial controls and procedures