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+380 (44) 209-26-53



Accounting in construction: why it is necessary and how to keep it correctly

In the modern world, construction is one of the most dynamically developing branches of the economy. Construction companies are engaged in the construction of various objects: from small private houses to large industrial buildings. Like any other industry, construction requires precision and control over all processes, including the financial side.

Accounting in construction is the collection, analysis and processing of information related to financial, material and labor resources used during the construction of construction objects. It covers the tracking of costs for materials, equipment, labor and other resources used on the construction site, as well as the accounting of income from the sale of finished objects.

Accounting in construction is a necessary tool for effective management of finances and resources of construction companies. It allows you to manage expenses, control the budget and evaluate the effectiveness of projects. Without accounting, companies cannot accurately determine their profitability and identify problem areas in their operations.

In addition, registration with construction organizations is a necessary condition for compliance with legislation and tax requirements. Construction companies must submit reports on their activities, as well as pay taxes in accordance with established norms. Accounting enables them to track all the necessary data and documents related to financial activities and meet the requirements of the law.

The main types of accounting in construction

Accounting in construction covers several main types that must be taken into account for effective management of financial, material and labor resources of construction companies.

Financial accounting in construction

Financial accounting enables construction companies to track all financial transactions related to activities on the construction site. Financial accounting covers all operations on the receipt and expenditure of funds, as well as the accounting of mutual settlements with counterparties. It covers the accounting of funds directed to the purchase of materials, equipment, labor and other costs related to activities on the construction site.

Accounting is an important component of financial accounting in construction. It enables construction companies to maintain documentation and reporting in accordance with legal requirements and accounting standards. Accounting in construction covers accounting of income and expenses, preparation of accounting balances and reports, as well as control over budget execution.

Management accounting in construction

Management accounting enables construction companies to control and optimize production processes on the construction site. It covers accounting of material and labor resources, control over production capacity and evaluation of the efficiency of resource use. Management accounting enables construction companies to make informed decisions based on data analysis of production processes and resources.

Tax accounting

Tax accounting in a construction company includes accounting of income, expenses and tax liabilities. Its purpose is to ensure the accuracy of tax calculation and timely payment. Tax accounting must meet the requirements of tax legislation and regulations.

Depending on the size and complexity of the construction project, construction companies can use one or several types of accounting.

Each type of accounting plays an important role in the successful operation of a construction company. Accounting, management accounting and tax accounting ensure the reliability of financial information and help a construction company make informed decisions in project management and business in general.

Characteristics of accounting in construction

Features of the calculation of construction costs

Calculation of construction costs is a complex and multi-stage process that requires a careful assessment of all factors affecting the cost of the project. In construction, costs can be both direct and indirect. Direct costs refer to materials, labor and equipment that are directly involved in the production process. Indirect costs are related to the rent of premises, costs for communal services, administrative costs, etc.

Estimating construction costs includes calculating the cost of all necessary resources, assessing risks and factors that may affect the project, as well as determining reserves in case of unexpected costs.

Accounting for production and use of materials

Accounting for production and use of materials is one of the key elements of accounting in construction. Every construction project requires a large amount of materials, and accounting for their production and use helps control costs and optimize production processes.

Accounting for materials can cover the following aspects: purchase of materials, their storage, transportation, use and write-off. Each stage of accounting requires careful control and accuracy.

Accounting for labor costs and salaries

Accounting for labor costs and salaries is an important element of accounting in construction, since labor costs constitute a significant part of construction costs. The accounting of labor costs includes the salary of workers and office employees, as well as all costs for social benefits and insurance.

Accounting for labor costs can cover the following aspects: accounting for working hours, accounting for payroll, accounting for vacations and sick days, accounting for taxes and deductions to social funds.

Accurate accounting of costs for all stages of the project allows the construction company to optimize the budget and resources, improve project management and make informed decisions.

Automation of accounting in construction

Nowadays, the automation of accounting in construction is an integral part of the work of construction companies. Modern software products for accounting in construction significantly simplify and speed up the process of keeping records, and also make it possible to reduce the number of errors and risks.
The main advantages of accounting automation in construction:
● Increasing work efficiency. Automated systems make it possible to significantly speed up the accounting process and reduce the number of errors that can occur during manual accounting.● Reduction of accounting costs. The use of specialized solutions makes it possible to reduce the costs of maintaining the accounting department and the personnel department, as well as to reduce the number of personnel required to perform these tasks.● Increasing the accuracy of accounting. With the help of automated systems, it is possible to significantly reduce the risk of errors associated with manual data entry, and also provide more accurate and reliable accounting.● Simplification of work with documents. Automated systems make it easier to work with documents, because all the necessary data is stored electronically and can be quickly found and processed.
Construction accounting programs provide a wide range of opportunities for construction cost accounting, material accounting, labor cost accounting, and other elements necessary for successful construction business. It is important to choose the right software product for your company and ensure that it is properly configured and used.
One of the examples of such solutions is the Ukrainian software product Dedal CPMS, which was developed by the Dedal Soft company and is intended for the automation of construction companies.
Dedal Construction Project Management Software (Dedal CPMS) has a wide range of functionality that allows you to manage construction projects, control financial flows, conduct cost analysis and budget forecasting, take into account changes in the project and automatically adjust plans, manage documents and resources, monitor the quality of work and much more.
The benefits of automation for construction companies using Dedal CPMS include:
● Reduction of time for accounting and analysis of financial flows;● Reducing the risks of errors in accounting and planning;● More accurate control over the implementation of projects and budgets;● Increasing the efficiency of the use of resources and materials;● Increasing the transparency of interaction with customers and contractors.
Consequently, automation of construction accounting using Dedal CPMS can significantly improve accounting efficiency and accuracy, ultimately leading to more successful projects and higher profits for construction companies.
In conclusion, it should be noted that accounting in construction is an integral part of a successful business in this field. It enables companies to control their costs and improve production efficiency. In modern conditions, when more and more companies are introducing automation into their business processes, the use of modern software products for accounting in construction is becoming more and more relevant.
It is recommended that all construction companies pay attention to accounting and implement modern technologies to improve the efficiency of their business.
You can order a free consultation on the automation of a construction company by calling (044) 209-26-53 or by leaving a request on the website. We will be happy to help you!

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