In the construction industry, standard accounting won't work well. A specialist construction industry accountant can only cater for you well in terms of tax planning and advice according to the CIS (Construction Industry Scheme). The tasks from Getting registered with HMRC to keep the entire records a construction accountant does.

If the project cost is predictable, we use standard accounting. In the case of a construction project, many factors like weather, supply of materials, and availability of subcontractors affect its completion. In this scenario, we can't predict the cost of a construction project and then require a construction accountant.

A CIS accountant will have complete knowledge of CIS (Construction industry scheme), which a standard accountant probably will not have. In 2021, the UK government introduced few changes in CIS and VAT reverse charges for construction work, which increased the demand to hire CIS accountants.

The contractor should be registered in CIS (Construction Industry Scheme) and need to deduct money from sub contractor's payment for tax and insurance. If the contractor is not registered, the subcontractor will have to pay tax at a higher rate. Construction accounting firms play a vital role in serving the construction business.

Setting up a limited company for construction accountants, whether as a sole trader or limited company, you might want to hire a construction accountant or construction bookkeeper. Having an experienced construction accountant can be integral to the success of your business.