Whether you’re a builder, tradesperson, or the manager of a construction business, cloud accounting software helps you manage quotes, invoices and your business’s finances on the go.
That’s not something to take for granted when you consider construction firms need to comply with the complexities of the construction industry scheme (CIS) and the domestic reverse charge VAT.
If you work in the construction sector and have yet to implement cloud accounting software in your business, here are six of the best reasons why it makes sense. And, of course, we are here to help you.
1) Issue quicker invoices
Whether you prefer to use a desktop, tablet, or smartphone, most digital accounting solutions come with intuitive invoicing software. This lets you send out invoices as soon as the work is complete.
Your chosen software provider usually lets you customise your invoice, so that they contain your construction business’s logo and essential contact details to help with prompt payments.
And if a payment is running late, the software gives you the option to automate any reminders which saves you the time and energy of chasing them yourself.
2) Pay suppliers easily
For construction firms using cloud software, the advantages include the ability to store all of your bills in one place and schedule batch payments in advance.
You will also have any purchase orders, expenses, or unpaid bills in one place, giving you a clear picture of the cash flowing out of your business whenever you need it.
3) Automate CIS duties
Without our help, complying with the CIS can be tricky. Using cloud software overcomes those hurdles, letting you get your calculations right and save considerable time on data entry.
Most of the big-player cloud solutions enable you to file your monthly returns and verify your subcontractors, all through the beauty of automation.
4) Manage reverse charge VAT
Domestic reverse charge VAT has been in place since 1 March 2021.
If your construction firm is VAT-registered, you need to collect the VAT from any subcontractors who supply you with standard and reduced-rate services. You also need to pay that VAT to HMRC.
Cloud software can show you which services the reverse charge applies to, the VAT rate that applies, and calculate any input or output tax on those supplies.
5) Monitor performance
One of the main benefits of using digital software in your construction firm is seeing all of your bank accounts, credit card statements, and PayPal transactions in one place to give a real-time view of your finances.
This helps you manage your business’s cashflow and make informed decisions on the information you have at your fingertips.
6) Manage payroll easily
If you employ any staff within your construction business, you need to run payroll. Digital accounting platforms calculate income tax, National Insurance contributions, workplace pension payments and more, before paying net salaries to your employees.
All digital solutions we endorse are HMRC-recognised payroll software to manage your real-time information (RTI) PAYE payments and deductions. If that doesn’t pique your interest, you can outsource your payroll to us.
How we can help
QuickBooks Online, Sage Business Cloud, and Xero are the three cloud accounting providers we endorse. We can talk you through your options, set you up on your chosen software, and show you how to make the most of it.
If you’re considering introducing cloud software within your construction business, email email@example.com or call us on 01454 619900 to find out more.