If you pay subcontractors, you need one who files CIS every month as routine rather than as a favour. That is the single dividing line, and it catches most construction businesses out because they cross it without noticing.
Below that, a good general accountant is fine. Above it, the work changes shape.
The five things a construction accountant has to actually do
CIS, monthly. Verify subcontractors before the first payment, deduct on labour rather than the whole invoice, file by the 19th, pay by the 22nd, issue statements within 14 days. Every month, no exceptions.
Reconcile the CIS taken off you. Not just claim what your books say. Check it against what HMRC actually holds, because the two disagree more often than people expect and the difference sits unclaimed.
The VAT reverse charge. Know when it applies, check whether the customer notified you as an end user, and catch the 5% rate on conversions that most firms miss.
Retentions and work in progress. Both on the balance sheet, both tracked. A general practice tends to net retention off or ignore it, which understates the business at exactly the wrong moment.
Job level numbers. Which jobs made money, while the jobs are still running. Not in the annual accounts eighteen months later.
What size of business needs which
| Where you are | What you need |
|---|---|
| Sole trader subcontractor, one or two contractors, no subbies of your own | A good general accountant. Make sure they reclaim your CIS properly. |
| Paying subcontractors, filing CIS monthly, turnover £500k to £5m | A construction specialist. This is where the gap starts costing real money. |
| Above £5m, or running a group, or bonded work | A specialist with experience of group structures and surety requirements. |
Qualifications are not the thing to check
Chartered, certified or AAT qualified all mean somebody has been tested properly. None of them tell you whether they have filed a CIS return this month.
Sector experience is what separates them. Ask how many construction clients they have, and how many CIS returns they file.
The questions that tell you quickly
- How many CIS returns do you file a month?
- How do you treat retention on the balance sheet?
- What happens when a customer says they are an end user for the reverse charge?
- Will I get job level profitability, and how often?
- When do my management accounts arrive after month end?
You do not need to know the answers yourself. You will hear straight away whether they do.
Where we sit
Construction is the only sector we work in, for businesses turning over roughly £500,000 to £5 million. Have a look at whether that is you or book a call.