Master specific challenges in construction accounting
Accounting in the construction industry differs fundamentally from other sectors. Projects often extend beyond 12 months, complicating profit and loss statements. Correctly recording down payments, partial, and final invoices is a common source of errors. Additionally, costs must be accurately allocated to individual construction sites as cost centers to evaluate the profitability of each project. Without an exact data basis from the construction site, meaningful post-calculation is practically impossible. Another problem is liability and coverage reserves for warranties, which must be kept on the balance sheet for years. This complexity means that manual processing of paper receipts and unstructured digital notes can take up to 15 hours per week per project manager. Digitizing these processes is not a luxury, but a necessity to ensure competitiveness.
GoBD: The legal basis for your digital processes
The “Principles for the proper management and storage of books, records, and documents in electronic form and for data access” (GoBD) are binding for every company in Germany. This administrative instruction from the tax authorities stipulates how digital, tax-relevant data should be handled. The 10 central requirements can be summarized under the term audit security. They include among other things:
- Traceability: Every booking must be supported by documentation.
- Completeness: All business transactions must be recorded without gaps.
- Unalterability: Once recorded, data must not be changed without logging.
- Timely recording: Bookings and records must be made promptly.
Many managers underestimate that the GoBD go far beyond pure financial accounting. Data from upstream systems like the digital time recording, photo documentation of defects, or construction logs are affected when they serve as the basis for invoices. Lack of or inadequate procedural documentation can lead to substantial estimates by the tax office during an audit, potentially increasing profits by up to 10%.
Building the bridge between the construction site and accounting digitally
The key to GoBD-compliant and efficient financial accounting lies in seamless digital documentation directly on the construction site. Since November 2020, electronic invoices (XInvoice) for public contracts have been mandatory, which further increases the pressure for digitization. But how can implementation succeed in the often chaotic construction day-to-day? The process does not start in the office, but on your employees’ smartphones. Instead of sending information and photos unstructured via WhatsApp, they can be captured directly with legal certainty through a guided, simple interface. This reduces the administrative effort in the office by up to 80%. Such digital recording ensures that all relevant information – such as weather, present employees, services provided, and photo evidence – is automatically timestamped and associated with the project, archived unalterably. This creates a solid foundation for all further commercial processes and a clean process optimization..
Automation of cost accounting and invoicing
Precise cost accounting is the heart of corporate management in construction. You need up-to-date figures to know where your construction sites stand financially. The manual transfer of time sheets, delivery notes, and measurements into accounting software is not only slow but also a significant source of errors. Through digital capturing on the construction site, this data is structured and flows into the office in real-time. This allows you to assign hours and material costs directly to the correct cost carriers (construction sites). This enables timely and accurate post-calculation, making deviations from the target state immediately visible. On this basis, interim and final invoices can be created up to 50% faster, directly improving your company’s cash flow and securing the financing of the construction phase. Conclusion: Your advantage with Valoon
The complexity of financial accounting in construction companies requires a move away from manual processes and unstructured island solutions. Digitization is the only way to sustainably ensure legal certainty according to GoBD, efficiency, and profitability. Valoon tackles this by radically simplifying data collection on site. Instead of burdening your employees with another app, Valoon leverages the already established WhatsApp for structured and legally compliant documentation.
Die Komplexität der Finanzbuchhaltung in Bauunternehmen erfordert eine Abkehr von manuellen Prozessen und unstrukturierten Insellösungen. Die Digitalisierung ist der einzige Weg, um Rechtssicherheit nach GoBD, Effizienz und Rentabilität nachhaltig zu gewährleisten. Valoon setzt genau hier an, indem es die Datenerfassung auf der Baustelle radikal vereinfacht. Anstatt Ihre Mitarbeiter mit einer weiteren App zu belasten, nutzt Valoon das bereits etablierte WhatsApp für eine strukturierte und rechtssichere Dokumentation. The greatest advantage lies in simplicity and the resulting high acceptance on the construction site. You receive a seamless, GoBD-compliant data foundation without training effort, which accelerates your accounting processes, reduces errors, and gives you back control over your project costs. Take the first step towards optimizing your business processes..
Are you ready to simplify your financial accounting and make it legally compliant? Book your free demo now and learn how Valoon bridges the gap between your construction site and your office.
More Links
Das Federal Statistical Office (Destatis) provides a comprehensive overview of the topic of construction in Germany.
On the page of the Federal Statistical Office (Destatis) you will find detailed tables and data on the construction sector.
Der Main Association of the German Construction Industry provides important figures and facts about the construction industry in a PDF document.
A chapter at Springer deals with a specific topic in the context of the construction industry.
Die Osnabrück University of Applied Sciences informs about a module that addresses relevant topics in civil engineering.
Das Trialog Magazine highlights in an article the digital transformation in the construction industry.
FAQ
Do we have to keep our paper receipts after scanning?
No, provided that the “replacement scanning” condition is met, paper receipts can be destroyed. The scanning process must be thoroughly described in procedural documentation, ensuring the readability, completeness, and unalterability of the digital receipt.
Our employees already use WhatsApp for photos from the construction site. Isn’t that sufficient?
No, the unstructured use of WhatsApp does not meet GoBD requirements. The images are not archived audit-proof, context is often lost, and there is a lack of systematic assignment to projects and processes. Valoon utilizes the simplicity of WhatsApp but channels the data into a structured, legally compliant system.
Which data at the construction site is relevant for accounting?
All data that serves as a basis for bookings or invoices is relevant. This includes recorded working hours (time tracking), consumed materials (delivery notes), services provided (measurements, construction diary), photo documentation of defects or construction progress, as well as any correspondence leading to an order.
What happens if we do not comply with the GoBD?
During an audit, the tax office can reject the accounting as improper. This can lead to an estimation of revenues and profits, resulting in substantial back taxes and possibly fines.
Do we need an expensive complete software for digitization?
Not necessarily. The most important step is to digitize and structure data collection at the source – the construction site. A simple, accepted solution like Valoon can serve as a bridge to your existing accounting software and deliver the necessary clean data without high investment costs.
How do I convince my employees of a new digital process?
The key is simplicity and a clear benefit for the employee. Rather than introducing a complex new app, solutions like Valoon leverage familiar tools like WhatsApp. When employees realize that the digital process makes their work easier (e.g., no more paperwork), acceptance is generally very high.
