How to Be Construction Accountant - Job Description, Skills, and Interview Questions

May 2, 2020 / 6 Minutes Read / By Albert

How to Become

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The role of an Accountant in a Construction Company is vital as they are responsible for managing the day-to-day financial activities of a construction project. If an Accountant fails to accurately track and report financial data, the entire project can be put at risk. Inaccurate or untimely financial data can lead to late payments, which can in turn cause delays, cost overruns, and a decrease in profit margin.

Furthermore, if an Accountant is unable to identify potential financial problems early, the company may be facing significant losses. As such, it is essential that Accountants in the construction industry have a comprehensive understanding of the financial risks associated with construction projects and the ability to identify and mitigate those risks.

Steps How to Become

Earn a Bachelor's Degree. A construction accountant typically needs to have a bachelor's degree in accounting or a related field. Depending on the job, some employers may prefer those who have a master's degree in accounting or business.
Gain Work Experience. Although some employers may accept recent graduates, most employers will prefer to hire someone who has experience working as an accountant in the construction industry. Candidates should be sure to highlight their experience on their resumes and during interviews.
Obtain Certification. Completing a certification program can help individuals stand out from the competition. The Certified Construction Industry Financial Professional (CCIFP) is a certification that employers may look for when hiring a construction accountant.
Develop Skills. Construction accountants should have skills in math, bookkeeping and computers. They should also be familiar with construction industry software and database programs.
Stay Up to Date. Construction accountants should stay up to date on changes to laws, regulations and best practices in the industry. Those who wish to stay ahead of the competition should consider taking continuing education courses or attending industry conferences.

A successful construction accountant must stay ahead and capable in order to be successful. This requires staying abreast of construction industry trends and technological advances, understanding the complexities of accounting, finance, and taxation, and being organized and diligent in their work. Staying informed of industry trends allows the construction accountant to provide clients with the most current and accurate information.

Understanding the complexities of accounting, finance, and taxation ensures that the accountant can identify potential issues before they arise and provide the most effective solutions. Being organized and diligent in their work allows the construction accountant to keep track of their client's financials and ensure accuracy and compliance with all applicable laws and regulations. By staying informed, understanding the complexities, and being organized and diligent, a construction accountant can remain ahead and capable of their clients' needs.

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Job Description

Prepare and maintain financial records for construction projects.
Monitor and review the accuracy of construction project costs and expenses.
Prepare and analyze construction project budgets.
Reconcile project accounts, ensuring that all costs and expenses are accurately captured.
Generate financial reports related to construction projects to be presented to management.
Monitor construction progress and assess risk of cost overruns.
Ensure compliance with contractual obligations, governmental regulations, and generally accepted accounting principles.
Assist with the negotiation of construction contracts.
Assist in the preparation of tax returns associated with construction projects.
Liaise with external auditors, subcontractors, and vendors to ensure accurate financial reporting.

Skills and Competencies to Have

Ability to analyze financial data and prepare financial reports
Knowledge of accounting principles and practices
In-depth understanding of Generally Accepted Accounting Principles (GAAP)
Excellent problem solving and analytical skills
Ability to work independently and in a collaborative team environment
Highly organized with strong attention to detail
Proficiency in computerized accounting systems and applications
Ability to interpret and reconcile project cost reports
Ability to develop and manage construction budgets
Ability to identify and monitor project costs, trends, and discrepancies
Strong written and verbal communication skills
Experience with job cost accounting

Having accounting knowledge is essential for any accountant, especially when it comes to an accountant working in construction. For example, a construction accountant needs to be able to understand the complexities of the different types of contracts involved in a construction project and be able to accurately track and analyze cost data. they must be able to interpret financial statements and have a good understanding of accounting principles such as GAAP and IFRS.

Furthermore, they need to have strong organizational skills in order to keep track of all the different projects they are working on. Finally, they must be able to communicate effectively with both the management team and other stakeholders in order to ensure accurate financial information is being shared. Having the right combination of these skills is what makes an effective construction accountant.

Construction Project Engineer, Construction Sales Representative, and Construction Design Engineer are related jobs you may like.

Frequent Interview Questions

What experience do you have with Construction Accounting?
How do you manage cash flow and accounts receivable for construction projects?
Describe your experience developing and managing construction budgets.
What challenges have you faced in reconciling construction accounts?
How do you stay up to date with changes in laws and regulations affecting construction accounting?
What strategies do you use to ensure accuracy when processing construction invoices?
Describe your experience with job costing and labor billing.
How do you ensure project profitability when dealing with multiple contractors?
How have you used technology to streamline the construction accounting process?
What makes you a great fit for a Construction Accounting role?

Common Tools in Industry

Accounting Software. A software program used to manage accounting tasks such as invoicing, bookkeeping, and payroll. (e. g. QuickBooks)
Construction Project Management Software. Software used to help construction companies manage projects, workflows, and budgets. (e. g. Procore)
Spreadsheets. A computer application used to store, organize and analyze data in tabular form. (e. g. Google Sheets)
Financial Reporting Software. A software program used to create financial statements and reports. (e. g. Xero)
Document Management System. A system used to store, organize, and manage documents electronically. (e. g. FileFlex)
Time Tracking Software. A software program used to track employee time and attendance. (e. g. TSheets)
Online Banking Software. Software used to manage bank accounts and financial transactions. (e. g. Mint)
Cloud Storage Solutions. An online storage service used to store and access data in the cloud. (e. g. Dropbox)

Professional Organizations to Know

American Institute of Certified Public Accountants (AICPA)
National Association of Certified Construction Industry Financial Professionals (NACCP)
American Society of Professional Estimators (ASPE)
Construction Financial Management Association (CFMA)
Associated General Contractors of America (AGC)
Associated Builders and Contractors (ABC)
National Society of Professional Engineers (NSPE)
National Contract Management Association (NCMA)
Institute of Internal Auditors (IIA)
Project Management Institute (PMI)

We also have Construction Superintendent Assistant, Pre-Construction Manager, and Construction Superintendent jobs reports.

Common Important Terms

Cost Accounting. Cost accounting is the process of analyzing and gathering information about a company's costs and expenses to help inform decisions and management strategies.
General Ledger. A general ledger is a record of a companys financial transactions and is used to produce financial statements and other reports.
Accounts Payable. Accounts payable is the amount of money a company owes to its suppliers and creditors.
Accounts Receivable. Accounts receivable is the amount of money a company expects to receive from its customers.
Budgeting. Budgeting is the process of creating a plan for the use of a companys resources in order to achieve its goals and objectives.
Cash Flow. Cash flow is the net amount of cash and cash-equivalents moving into and out of a business.
Financial Statements. Financial statements are documents that provide detailed information about a companys financial situation. They include income statements, balance sheets, and cash flow statements.
Job Costing. Job costing is the process of tracking the costs associated with a specific job or project.
Project Accounting. Project accounting is the process of tracking and reporting on the costs associated with a particular project or job.
Variance Analysis. Variance analysis is the process of comparing actual costs to budgeted costs in order to identify areas where performance can be improved.

Frequently Asked Questions

Q1: What is the role of a Construction Accountant? A1: A Construction Accountant is responsible for managing financial activities and providing financial advice for construction projects. This includes overseeing budgeting, tracking expenses, reviewing contract documents, preparing financial statements, and managing cash flow. Q2: What qualifications are required to become a Construction Accountant? A2: A Construction Accountant typically requires a bachelor's degree in accounting or finance, along with experience in the construction industry, such as construction project management or estimating. Additionally, many employers require certification, such as a Certified Public Accountant (CPA) or Certified Construction Accountant (CCA) credential. Q3: How much does a Construction Accountant typically earn? A3: The salary of a Construction Accountant varies depending on experience, location, and size of the employer. Generally, Construction Accountants can earn an average salary of around $60,000 to $80,000 per year. Q4: What are some of the responsibilities of a Construction Accountant? A4: Some of the duties of a Construction Accountant include preparing and monitoring budgets, tracking expenses, ensuring compliance with relevant laws and regulations, preparing financial statements and reports, and managing cash flow. Additionally, they are responsible for analyzing contract documents and recommending strategies for improving financial performance. Q5: What skills are needed for a successful career as a Construction Accountant? A5: To be successful as a Construction Accountant, individuals must possess strong analytical, problem-solving, and communication skills. They must also be able to pay close attention to detail and have a thorough understanding of accounting principles and practices. Additionally, they must be proficient in using accounting software and other financial management tools.