Contractors and construction firms work on long-duration projects with milestone billing, retentions and multiple subcontractors. VVouch structures accounting around the project, not just the company, so profitability is visible while a job is still running.
Challenges
- Long-term contracts spanning multiple VAT periods and financial years complicate revenue recognition and VAT timing.
- Retentions, advance payments and milestone billing need to be tracked separately from straightforward invoicing.
- Managing subcontractor and supplier payments alongside project cash flow is difficult without project-level accounting.
- Corporate Tax and VAT obligations on contracts that straddle a company's financial year-end need careful handling.
How VVouch Helps
- Project-based bookkeeping that tracks retentions, milestone billing and subcontractor payments separately from general ledger entries.
- VAT advisory on long-term contracts, including the timing of tax points on milestone and advance payments.
- Corporate Tax registration and filing that accounts for revenue recognised across financial years.
- Management accounting that gives a real-time view of project profitability, not just company-wide totals.
