Construction

How We Help Construction Businesses

Our construction accounting and advisory services include:

• Project and job profitability reporting
• Work-in-progress reviews
• Progress claim and retention tracking
• Subcontractor payment and reporting support
• Payroll, superannuation and payroll tax compliance
• Taxable Payments Annual Report preparation
• Cash flow budgeting and forecasting
• GST and BAS preparation
• Equipment purchase and depreciation reviews
• Management reporting
• Finance and loan documentation
• Business structuring and tax planning

Project and Job Profitability

Revenue does not always provide a complete picture of whether a construction project is performing well. Labour, materials, subcontractors, equipment and project delays can all affect the final result.

We help construction businesses review job costs, work in progress and project margins so owners can better understand which projects are performing as expected and where costs require attention.

Clear project reporting can also support quoting, pricing and resource allocation for future work.

Work in Progress, Progress Claims and Retentions

Construction businesses often receive income and incur costs at different stages of a project. This can make financial results difficult to interpret without appropriate work-in-progress adjustments.

We assist with reviewing work in progress, progress claims, deposits and retentions to help ensure financial reports reflect the current position of each project as accurately as possible.

Cash Flow Budgeting and Forecasting

A profitable construction business can still experience cash flow pressure when supplier payments, wages and subcontractor costs become due before customer payments are received.

We prepare cash flow budgets and forecasts to help business owners anticipate upcoming commitments, identify possible funding gaps and plan for equipment purchases, tax payments and periods of lower activity.

Forecasts may also support discussions with banks, lenders and equipment finance providers.

Tax and Compliance Support

We assist construction businesses with ongoing tax and reporting obligations, including:

• Business Activity Statements
• GST reporting
• Income tax returns
• Payroll tax
• Superannuation
• Taxable Payments Annual Reports
• Year-end tax reconciliations
• ATO correspondence

We can also help review the accounting and tax treatment of deposits, progress payments, retentions, equipment purchases and other construction-related transactions.

Subcontractors and Payroll

Construction businesses frequently engage a combination of employees and subcontractors. Maintaining accurate records and understanding the associated tax, superannuation and reporting obligations is important.

We assist with payroll processing, superannuation reconciliations, subcontractor reporting and Taxable Payments Annual Reports. Where worker classification or employment law advice is required, additional specialist advice may also be recommended.

Equipment Purchases and Depreciation

Vehicles, machinery, tools and other equipment can represent a significant investment for a construction business.

We review equipment purchases to determine the appropriate accounting and tax treatment, including whether an asset may qualify for an immediate deduction or should be depreciated over time. We can also assist with recording finance arrangements and reconciling loan balances.

Business Structuring and Tax Planning

The appropriate business structure may depend on the size of the operation, ownership arrangements, future plans and the type of work being undertaken.

We provide accounting and tax advice for businesses considering a new structure, changes to an existing structure or future expansion. We also conduct tax planning reviews before the end of the financial year to identify relevant obligations, potential issues and available planning opportunities.

Who We Work With

We support a range of construction and trade-related businesses, including:

• Residential and commercial builders
• Construction contractors
• Subcontractors
• Electricians and plumbers
• Concreters and tilers
• Carpenters and cabinetmakers
• Civil and earthworks businesses
• Engineering and project service businesses
• Other building and trade professionals

Talk to Our Construction Accounting Team

Whether you need assistance with bookkeeping, tax compliance, project reporting, cash flow forecasting or business planning, our team can provide support tailored to your construction business.

Contact J&N Accountants to discuss your current accounting needs and the financial challenges facing your business.