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

Oct 8, 2021 / 6 Minutes Read / By Albert

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The Accounting Manager is a vital component of any construction business, as they are responsible for managing financial records and ensuring accuracy in the reporting of financial information. Without a competent Accounting Manager, construction companies risk discrepancies in their financials, which can lead to costly mistakes and potential legal issues. A good Accounting Manager will keep accurate records of all financial transactions, implement efficient accounting systems, and provide sound financial advice to the business.

They should also have the ability to analyze financial data and develop strategies for improving efficiency and increasing profits. the Accounting Manager serves as a key decision-maker, playing an integral role in the success of the construction business.

Steps How to Become

Obtain a Bachelor's Degree. To become a construction accounting manager, you will need to first earn a bachelor's degree in accounting, business, or a related field. This degree will provide you with the necessary foundational knowledge and skills to understand the principles of accounting and business.
Gain Experience in Construction Accounting. Before becoming a construction accounting manager, it is important to gain experience in the field. You should consider interning in the construction accounting field at a construction company or accounting firm. This will provide you with valuable insights into the daily operations of construction accounting and help you better understand the principles and practices.
Obtain Professional Certification. After gaining experience in the field, you may want to consider obtaining a professional certification. This certification will demonstrate that you have the necessary skills and knowledge to work as a construction accounting manager. Some of the most popular certifications include Certified Public Accountant (CPA), Certified Management Accountant (CMA), and Certified Internal Auditor (CIA).
Find a Job. Once you have the necessary credentials, you can begin searching for a job as a construction accounting manager. There are many job openings available at construction companies, accounting firms, and government agencies. You can search online job boards or contact recruiters in your area to find potential job openings.
Advance Your Career. Once you have obtained a job as a construction accounting manager, you should focus on advancing your career. Consider taking additional classes or obtaining additional certifications to further your knowledge and skills. Additionally, you may want to consider joining professional organizations or attending conferences related to construction accounting to stay up-to-date on industry trends and best practices.

Accounting managers play a vital role in ensuring reliable and efficient financial operations for construction businesses. To ensure reliability and efficiency, it is important for accounting managers to implement effective financial processes and systems that are regularly reviewed and updated. This includes maintaining accurate records, conducting internal audits, implementing proper controls on expenses, and developing and using effective budgeting techniques.

it is important for accounting managers to stay up-to-date with industry best practices, use the latest technology and software solutions, and have a deep understanding of the financial implications of construction projects. By taking proactive steps to ensure reliability and efficiency in construction accounting, accounting managers can help their businesses succeed.

You may want to check Construction Superintendent of Maintenance, Construction Superintendent Assistant, and Senior Construction Manager for alternative.

Job Description

Oversee day-to-day accounting operations, including accounts receivable, accounts payable, and payroll processing.
Manage the preparation of accurate and timely monthly, quarterly, and year-end financial statements.
Prepare monthly general ledger reconciliations.
Ensure compliance with applicable laws and regulations.
Oversee the completion of annual financial audits.
Analyze financial performance, identify areas of improvement and recommend corrective actions.
Develop and maintain internal controls to ensure accurate financial reporting.
Monitor cash flow, budgeting and forecasting activities.
Manage the preparation of tax returns and other governmental reports.
Establish and maintain relationships with key vendors and contractors.
Create and manage long-term financial strategies for the organization.
Provide leadership and guidance to the accounting team.
Ensure that all accounting processes are up to date and compliant with GAAP principles.
Assist with month-end close activities, such as journal entries and account reconciliations.
Communicate with project managers regarding project budgeting and cost tracking.

Skills and Competencies to Have

Project management
Budgeting, forecasting and financial analysis
Cost estimation and control
Accounting principles and practices
Tax compliance
Auditing and internal controls
Risk management
Financial reporting
Business insights and decision-making
IT systems proficiency
Negotiation and client relationship skills
Leadership and team management
Strategic planning and problem-solving

The role of an Accounting Manager requires a broad set of skills, but the most important one is the ability to effectively manage and analyze financial data. This skill is critical to the success of any organization, as it enables them to make informed decisions, track and manage expenses, and ensure compliance with laws and regulations. To be successful in this role, Accounting Managers must have an in-depth understanding of financial concepts, accounting principles, and have a keen eye for detail.

They must also be able to communicate financial information to stakeholders and colleagues in a clear and concise manner. Furthermore, they must be able to develop and implement accounting systems and procedures, and analyze financial data to identify trends and variances from budget. this skill set enables an Accounting Manager to provide accurate financial insights and guidance to the organization.

Construction Coordinator, Construction Inspector, and Construction Site Supervisor are related jobs you may like.

Frequent Interview Questions

What experience do you have managing construction accounting?
How do you handle complex financial information related to construction projects?
Describe a time when you had to adjust budgets for a construction project.
In what ways have you improved processes related to construction accounting?
How do you ensure accuracy in all construction accounting documentation?
How do you stay up to date on the latest changes in construction accounting regulations?
What challenges have you faced while managing construction accounting?
How do you communicate financial information to non-financial personnel?
Describe a time when you had to resolve a conflict between subcontractors and the construction company.
How do you ensure compliance with all applicable laws related to construction accounting?

Common Tools in Industry

Accounting Software. A software program that allows businesses to manage their accounting, financial and tax information. (e. g. QuickBooks)
Budgeting Software. A software program that helps businesses plan and track their financial budgets. (e. g. Adaptive Insights)
Invoicing Software. A software program that helps businesses create and manage invoices. (e. g. FreshBooks)
Time Tracking Software. A software program that helps businesses track time spent on projects and tasks. (e. g. Toggl)
Payroll Software. A software program that helps businesses process payroll information. (e. g. Gusto)
Reporting Tools. Software that enables businesses to generate and analyze reports from their financial data. (e. g. Microsoft Power BI)
Tax Preparation Software. A software program that helps businesses prepare and file their taxes. (e. g. TurboTax)
Project Management Tools. Software that helps businesses plan and manage projects and tasks, track progress, and collaborate with team members. (e. g. Asana)

Professional Organizations to Know

American Institute of Certified Public Accountants (AICPA)
Association of International Certified Professional Accountants (AICPA)
National Society of Accountants (NSA)
The American Society of Construction Accountants (ASCA)
The Construction Financial Management Association (CFMA)
The Institute of Certified Construction Industry Financial Professionals (ICCIFP)
International Cost Engineering Council (ICEC)
The Construction Industry Institute (CII)
American Subcontractors Association (ASA)
Associated General Contractors of America (AGC)

We also have Construction Buyer, Construction Administrator, and Construction Superintendent Administrator jobs reports.

Common Important Terms

Accrual Accounting. A method of accounting that records transactions at the time they occur instead of when payment is received or made.
Accounts Payable. Money owed to vendors and suppliers for goods or services purchased on credit.
Accounts Receivable. Money owed to a company by its customers for goods or services already provided.
Depreciation. The gradual reduction in the value of a fixed asset over its useful life.
Financial Statements. Reports that provide information about a companys financial performance, such as its income statement, balance sheet, and cash flow statement.
General Ledger. A record of all financial transactions for a company, including assets, liabilities, income, and expenses.
Journal Entries. Accounting entries made to record business transactions in a companys general ledger.
Revenue Recognition. The process of recognizing revenue on the income statement when it is earned, rather than when it is received.

Frequently Asked Questions

What is a Construction Accounting Manager?

A Construction Accounting Manager is a professional responsible for managing the financial side of a construction project. This includes budgeting, tracking expenses, preparing financial reports, and ensuring compliance with applicable laws and regulations.

What Are the Responsibilities of a Construction Accounting Manager?

The responsibilities of a Construction Accounting Manager include creating and managing budgets, tracking labor and material costs, preparing financial statements, and analyzing financial data. Additionally, they are responsible for monitoring cash flow, managing accounts receivable and accounts payable, and maintaining accurate records.

What Skills Are Needed for a Construction Accounting Manager?

A successful Construction Accounting Manager should have strong knowledge of accounting principles and practices, as well as excellent analytical, problem-solving, and organizational skills. They should also possess excellent communication skills in order to collaborate with other stakeholders in the project.

What Qualifications Does a Construction Accounting Manager Need?

A Construction Accounting Manager typically needs at least a bachelor's degree in accounting, finance, or business administration. Some employers may require additional certifications such as Certified Public Accountant (CPA) or Certified Management Accountant (CMA).