Streamline Your Financials With Outsourced Construction Accounting

Juggling complex contracts, fluctuating material costs, and intricate payroll tasks can quickly overwhelm even the most seasoned construction professionals. This is where outsourced construction accounting can help. 

By entrusting your financial and accounting processes to specialized accounting experts, you can achieve benefits ranging from streamlined processes and reduced risk to invaluable insights and enhanced compliance.

In this comprehensive guide, we’ll help you simplify outsourced construction accounting and showcase how it can take your business to new heights.

We’ll introduce you to the diverse range of services you can outsource, dissect the factors to consider when selecting a provider, and reveal the top five firms shaping the industry’s landscape.

5 Benefits of Outsourced Construction Accounting

The US construction industry involves an enormous amount of capital, with the sector being valued at almost $2 trillion in 2023. With so much money on the line, maintaining accurate and efficient financial management is crucial. 

Let’s dive into the five key benefits that make accounting outsourcing a smart move for your construction business.

Streamlined financial processes

With professionals handling your accounts, you can reduce administrative burdens and focus more on core business activities. External financial experts implement best practices and use advanced technology to automate tasks, resulting in faster and more accurate financial management.

Access to specialized knowledge

Outsourced accounting providers bring specialized knowledge and expertise to the table. Their professionals are well versed in construction-specific financial challenges, offering insights and solutions that in-house accounting teams might not possess.

Cost savings and efficiency

Outsourcing your accounting can save you money by trading fixed overhead costs (such as salaries, benefits, and software) for variable costs that may align better with your business needs. 

Plus, the efficiency gains are undeniable. With streamlined processes and automated systems, outsourced accounting providers can deliver faster turnaround times and more accurate results, ultimately boosting your bottom line.

On top of that, by outsourcing accounting and bookkeeping tasks to regions like Latin America (LatAm), you can save considerably on salary costs.

Reduced risk of errors

Mistakes in construction accounting can be costly, leading to penalties, audits, or even legal issues. By partnering with an experienced accounting provider, you mitigate these risks. Their meticulous attention to detail and rigorous quality control measures ensure your financial data is accurate and reliable.

Compliance with industry standards and regulations

Staying compliant with the trends of construction accounting can be a full-time job in itself. Outsourced accounting providers stay up to date on the latest regulations and ensure your business adheres to all industry standards, such as the Construction Financial Management Association (CFMA) guidelines.

This proactive approach safeguards your company from potential legal and financial pitfalls.

What Services Do Outsourced Construction Accounting Providers Offer?

Outsourced construction accounting providers offer a wide range of services customized to meet the unique needs of your construction business. Here are some of the key services they provide:

• Financial reporting and analysis: Providing detailed reports on project profitability, cash flow, and overall financial health.
• Tax compliance and planning: Ensuring your business adheres to all tax laws and regulations.
• Accounts payable and receivable management: Streamlining invoice processing, payment tracking, and collections.
• Payroll processing: Handling all aspects of payroll, including wage calculations, tax deductions, and direct deposits.
• Job costing and project accounting: Tracking costs at every stage of a construction project, providing accurate estimates, and identifying areas for potential cost savings.
• Cash flow management: Monitoring and forecasting cash flow to ensure your business has the liquidity to meet financial obligations and invest in growth opportunities.
• Software implementation and support: Assisting with the selection and implementation of accounting software solutions, as well as providing ongoing training and support.
• CFO advisory services: Offering strategic financial guidance on a variety of issues, such as budgeting, forecasting, risk management, and growth strategies.

How To Choose an Outsourcing Provider for Construction Accounting

Whether you partner with a staffing accounting firm or an individual outsourced accountant, choosing the right outsourced construction accounting provider is critical for your construction business’s financial health and operational outputs.

To help you make an informed decision, here’s a roadmap to guide you in finding the right accounting partner:

1. Research and evaluate providers

Start by researching potential finance and accounting providers. Look for those that have positive reviews, strong reputations, and a track record of success in the construction industry.

2. Assess industry experience and expertise

Ensure the provider has specific experience and expertise in construction accounting. Familiarity with industry-specific financial challenges and regulations is vital.

3. Evaluate service offerings and technology

Look for providers offering a comprehensive suite specifically tailored to construction companies. This should include job costing and project management tools that provide real-time insights into costs, budgets, and profitability. 

Ensure they offer seamless integration with industry-specific construction management software to streamline workflows. Expertise in construction accounting best practices is crucial, ensuring they can handle lien waivers, retainage management, and progress billing procedures effectively.

4. Consider pricing and flexibility options

Compare pricing models and determine the flexibility of service packages. Choose a provider that offers competitive rates and can adapt to your business’s evolving needs.

How To Transition to Outsourced Construction Accounting

Transitioning to outsourced construction accounting can be smooth and efficient with the right approach. Here’s how to make it happen:

1. Develop a transition plan

Start by creating a detailed transition plan for outsourcing. Outline the steps, timelines, and key milestones to ensure a structured approach. This plan will serve as a roadmap for the entire process, minimizing disruptions to your operations.

2. Communicate with your teams and provide onboarding

Inform your team about the transition and the benefits it will bring. Work closely with the outsourcing provider to onboard them and integrate their processes seamlessly into your business. Clear communication will help manage expectations and foster collaboration.

3. Ensure proper controls and access

Establish proper controls and access rights to maintain security and efficiency. Define who will have access to financial data and ensure that sensitive information is protected. Implement checks and balances to maintain data integrity and prevent unauthorized access.

4. Integrate current accounting setup

Work with your outsourcing provider to integrate your current accounting setup into their systems. This includes transferring existing financial data, aligning accounting practices, and ensuring compatibility with your existing software. Proper integration will ensure a smooth transition and continuity in your financial management.

Top 5 Construction Accounting Providers

To simplify your search for the best outsourcing partner, we’ve compiled a list of five top outsourced construction accounting businesses, including both specialized accounting staffing agencies and recruitment firms with expertise in placing construction accounting professionals. 

This list is not ranked in any particular order, as the best fit for your business will depend on your specific requirements.

1. Near

We’re putting ourselves first because we’re passionate about helping construction businesses scale efficiently! Near helps you hire from a vast pool of pre-vetted, highly skilled accounting professionals from LatAm. 

We specialize in finding the perfect fit for your needs, whether you need a junior bookkeeper or a seasoned CFO. By hiring remotely with Near, you can tap into top talent while reducing overhead costs by 30% or more.

2. Pacific Accounting & Business Services (PABS)

Pacific Accounting & Business Services (PABS) has specialized in outsourced accounting since 2008, with offices in Texas, California, and Hawaii. 

With over 550 skilled professionals, PABS provides a broad range of services, including tax preparation, bookkeeping, and white-label services tailored for construction companies. 

3. Golden Apple Agency

Golden Apple Agency specializes in accounting and bookkeeping services for construction companies, offering solutions from DIY support to comprehensive financial data analysis. Its services include job costing, monthly bookkeeping in QuickBooks, and performance insights. 

4. BooksTime

BooksTime offers a comprehensive suite of outsourced accounting and bookkeeping services specifically tailored for the construction industry. Its services include meticulous transaction recording, bank and credit card reconciliation, project-based expense reporting, tax-ready financial statements, and insightful cash flow analysis. 

5. Apparatus Contractor Services

Apparatus Contractor Services specializes in precision accounting and CFO services tailored exclusively for construction professionals. 

Using QuickBooks Online, it integrates with leading construction management systems like Procore and Buildertrend. Its offerings include job costing, payroll management, creating financial reports, and strategic CFO guidance. 

Final Thoughts

If you follow the right processes when choosing an outsourced accounting provider and integrating them into your construction business, you can take full advantage of the range of benefits of outsourced accounting.

By partnering with outsourced hiring companies like Near to outsource construction accounting services, you can confidently navigate complex financial landscapes, streamline operations, and achieve sustainable growth.

Ready to construct a future of financial confidence with a top provider of finance and accounting talent? Our LatAm-based professionals are highly qualified and offer affordable rates compared with US accountants.

Schedule a free consultation with Near and discover how you can hire skilled professionals within 21 days and start transforming your accounting processes.