Construction Company

The project involved providing complete financial reporting, tax compliance, and financial analysis for a construction company engaged in road works, building construction, and infrastructure projects. The objective was to present accurate financial information, monitor project performance, and support informed financial planning across multiple ongoing and completed projects.

• Assets:
  • Current Assets: Cash and bank balances, accounts receivable from project clients, advances paid to suppliers, materials inventory.
  • Non-Current Assets: Construction equipment, vehicles, machinery, tools, and office assets.
• Liabilities:
  • Current Liabilities: Accounts payable, subcontractor payables, accrued project expenses, short-term loans.
  • Non-Current Liabilities: Long-term loans, equipment financing, deferred tax liabilities.
• Equity:
  • Share capital, retained earnings, and reserves.

Purpose:
Provided a clear view of the company’s financial position, capital structure, and ability to meet short-term and long-term obligations while managing multiple projects.

• Revenue:
  • Project-based revenue from roads, buildings, and infrastructure contracts, recognized according to project progress and completion stages.
• Direct Costs:
  • Materials, labor, subcontractor costs, equipment usage, and site expenses.
• Gross Profit:
  • Calculated per project to evaluate individual project performance.
• Operating Expenses:
  • Administrative expenses, office salaries, utilities, vehicle expenses, and depreciation.
• Net Profit:
  • Profit before and after tax for the reporting period.

Purpose:
Measured overall profitability and identified high-performing and low-performing projects.

• Operating Activities:
  • Cash received from project billings and milestone payments.
  • Cash paid for materials, labor, subcontractors, and operating expenses.
• Investing Activities:
  • Purchase and disposal of construction equipment and vehicles.
• Financing Activities:
  • Loan proceeds, repayments, interest payments, and capital injections.

Purpose:
Assessed the company’s liquidity position, ensuring sufficient cash availability to meet project expenses and timelines.

• Recorded movements in share capital and retained earnings resulting from profits, losses, and dividend distributions.
• Reflected equity adjustments related to financing and business expansion.

Purpose:
Provided transparency regarding ownership value and retained profits over the reporting period.

• Calculation and filing of corporate income tax based on project profits.
• Compliance with applicable withholding taxes, payroll taxes, and indirect taxes related to construction activities.
• Preparation and submission of statutory tax reports within deadlines.

Purpose:
Ensured compliance with tax regulations and reduced exposure to penalties and compliance risks.

• Recommended improved project cost tracking at site level.
• Suggested aligning project billing schedules with cash outflows to reduce cash pressure.
• Advised on equipment utilization to avoid unnecessary capital expenditure.
• Provided guidance on managing receivables and retention amounts from clients.

• Recommended improved project cost tracking at site level.
• Suggested aligning project billing schedules with cash outflows to reduce cash pressure.
• Advised on equipment utilization to avoid unnecessary capital expenditure.
• Provided guidance on managing receivables and retention amounts from clients.

• Improved financial visibility across all construction projects.
• Enhanced control over project costs and profitability.
• Better cash flow planning to support project execution and timelines.
• Accurate and compliant financial reporting for management and stakeholders.

• Project-based accounting systems and Excel models.
• Customized financial reporting templates for construction activities.
• Analytical techniques including project margin analysis and cash flow forecasting.