5 Benefits of Construction Accounting Software in UK

Looking for benefits of construction accounting software in UK?

Managing your finances today is a difficult thing, especially for those working in the construction industry. There are many projects, subcontractors, compliance requirements, etc. that you must follow, so it can be overwhelming to keep track of it all. 

Luckily, technology is here to help. Today, you have various construction accounting software that can streamline your whole business. To give you a better understanding, we gathered the 5 most common benefits construction account software has for businesses in the UK. 

Streamlined CIS Compliance

One of the biggest pros of accounting software in the construction industry is that it makes sure your business works according to the Construction Industry Compliance (CIS) rules. CIS is a set of rules and regulations given by HM Revenue and Customs (HMRC) that details how subcontractors should be paid, and how the construction worker should invoice and pay the VAT. 

Accounting software makes this job easier by creating CIS reports which are 100% in compliance with the HMRC guidelines. It also verifies the subcontractor’s unique tax reference (UTR) number and validates their status with the HMRC. This way, you don’t have to do all of this on your own a.k.a. you can focus on your business and be sure you’ll avoid any penalties.

Enhanced Project Cost Management

Efficient cost management is one of the pillars of a successful business. Construction accounting software gives you every tool you need to automate this process. Instead of finding the money leaks on your own, this type of software tracks and manages all costs for you. It can find unnecessary expenses on some parts of a project, analyze budget variances, and give you detailed cost reports. 

What’s even better is that accounting software can also integrate with other project management tools like time tracking or scheduling software. This way, all data will be quickly transferred without manual input, all the while ensuring the project runs smoothly. Simply put, you’ll have more time to make informed decisions, identify ways to save up and improve profits. 

Improved Subcontractor Management

Being able to manage all subcontractors on your project allows for an efficient workflow. With this type of software, you can create subcontractor contracts, manage them, and create payments. Simply put, construction accounting software lets you streamline the whole employee process—from hiring to paying them. 

Another thing is that this software allows management to evaluate the performance of the subcontractor—see whether or not they complete the job on time, what customer feedback they’ve received, etc. Using these insights, you’ll know whether or not that subcontractor is reliable for future projects. 

Real-Time Financial Visibility

Aside from following the subcontractors, accounting software allows businesses to also keep track of their finances all the time. This means you’ll always know whether or not your company’s doing fine, financial-wise. Basically, you can easily access the financial statements, balance sheets, profit and loss reports, etc. With that knowledge, you can make better decisions that would benefit the company as a whole.

What’s more, construction accounting software integrates with bank feeds, meaning you’ll automatically conduct all transactions. There’s no more need for you to manually input any data i.e. it saves you the risk of errors. 

Increased Efficiency and Productivity

Finally, accounting software in the construction industry helps improve overall productivity. By automating simple but very important tasks like invoices and data entry, you get more time to focus on your business. Plus, you can allocate the resources used on these small tasks to something much better and more productive since this tool will always remind you when the time for invoicing or another automated task comes.

Another plus is the fact that this software usually has a mobile app so you can access your finances whenever and wherever. You can be at the construction site or in a meeting, but you’ll always know what’s going on in your company so you can make quick and informed decisions.

Conclusion

As you can see, investing in construction accounting software in the UK has many benefits. From streamlining the whole payment process to managing all subcontractor contracts and ensuring overall efficiency and productivity, this type of software revolutionizes financial management as a whole. 

All in all, you get to cut your costs in the long run, streamline all tedious operations, plan for the future of the company, and grow your business. So don’t wait up! Invest in construction accounting software today and see for yourself the power of transformation it holds!

Contact Blue Lotus 360 who offer ERP systems in UK to get construction accounting software in UK.

Editorial Staff

Written by one of ERP expert at Blue Lotus 360.