Invoicing software for your masonry business

Accounting for masons can sometimes seem complex, because this sector belongs to the construction industry, which has its own specific rules. However, with the help of invoicing software for your masonry business, the entrepreneur can manage their accounting without spending too much time on it.

The accounting obligations of a masonry business

A masonry business with fewer than 10 employees is considered a craft business. If you also purchase and resell goods, your company is also treated as commercial. Masonry businesses with more than 10 employees are no longer considered craft businesses, but purely commercial ones.

In all cases, and regardless of your company’s legal form (EURL, SASU, SA, SNC, SARL, SAS, etc.), the following accounting obligations apply.

• Chronological recording of all transactions: you must record debts and receivables on accounting documents specifying the nature and origin of these transactions, along with supporting documents where necessary.
• Invoicing all your work, without omitting any of the mandatory details.
• Carrying out an annual inventory.
• Filing annual accounts at the end of each financial year with the commercial court registry you depend on: balance sheet, income statement and appendices.
• All accounting records must be kept for at least 10 years: purchase and sales invoices, the journal ledger recording all transactions affecting the company’s assets (chronological record of purchases and sales), the general ledger which groups together all journal entries, as well as all accounts, supporting documents, etc.

You must also hold a dedicated bank account.

Simplified accounting for certain businesses

If your turnover is below €247,000 for service providers and €818,000 for buying and selling activities, you fall under the Simplified Tax Regime (RSI) and benefit from lighter accounting obligations. For example, you can provide a simplified presentation of the balance sheet and income statement and are not required to produce appendices.

If you fall under the tax regime for micro-entrepreneurs

You can set up as a micro-entrepreneur and benefit from a simplified tax regime. In that case, you do not need to produce a balance sheet, income statement or accounting appendices.

However, you are subject to craft-business bookkeeping, with the following obligations:

• invoicing;
• keeping a revenue ledger listing all of the company’s annual revenue;
• a purchase register once you move to the simplified regime;
• opening a bank account dedicated to your activity: this account does not have to be a business account, a personal current account is sufficient.

On the other hand, like any sole trader, you are subject to thresholds: €72,500 in turnover for service activities or €176,200 for a commercial activity. Once you have exceeded the pre-tax turnover threshold of the micro-entrepreneur regime for 2 consecutive years, you move into the sole proprietorship regime. For a commercial, craft or industrial activity, you move into the simplified actual profit tax regime (BIC: industrial and commercial profits) and the self-employed workers’ social security regime. For a professional/liberal activity, you move into the controlled declaration tax regime (BNC: non-commercial profits) and the self-employed workers’ social security regime.

Choosing invoicing software for a masonry business

A masonry business chooses its invoicing software based on its accounting obligations. Software like Bizyness is compatible with all legal statuses. If you change status to adapt to your company’s evolution, the software remains compatible. Bizyness comes with settings and automations that let you produce all accounting documents with great simplicity. You are assured of complying with your accounting obligations and can provide the tax authorities with all the required reports.

Finally, your accounting is kept in the cloud. You don’t have to rent storage space yourself and don’t need to worry about backups. You have access to your accounts at any time, without cluttering your computer or external hard drive.

The specifics of construction industry accounting

Beyond the accounting obligations common to all business sectors, as a mason you need to know the specifics of construction industry accounting.

The different VAT rates

Masonry businesses in France face different VAT rates: 5.5%, 10% or 20%. Make sure your invoicing software for masonry businesses can show all three rates on the same invoice.

You can also use the VAT reverse charge mechanism. This measure applies when you act as a subcontractor. In this case, only the pre-tax amount appears on your invoice.

The prorata account

A masonry business often works on sites shared with other trades. In this case, a prorata account is created to list expenses shared among all parties involved. This mainly covers water, gas and electricity costs, securing the site, site maintenance, general cleaning before handover, etc.

All costs must first be recorded, before being allocated among the various companies, in proportion to their participation and consumption.

Interim payments and work advances

A masonry project can take a long time, and it’s out of the question to wait until handover to be paid in full. Partial payments are typically requested. In this case, you must invoice advances, calculated based on work progress statements. These advances are then deducted from the final invoice, which corresponds to the settlement calculating the remaining balance due.

Progress billing

Long-term projects can span several financial years. Your masonry invoicing software will need to include part of the work in turnover, based on the progress of the site, and therefore reflect it in the closing documents for each financial year.

Retention money

A client may ask to benefit from retention money. Its amount generally corresponds to 5% of the overall invoice for the project. It allows the client to protect themselves against defective work: one year after handover, if no defects are found, the client pays the retention money.

This retention money must be provided for in the accounting software for masons.

Test your invoicing software for masonry businesses

Choosing your invoicing software for masons should be done with careful examination. You need to make sure all the necessary features are present. It is also in your interest to automate as many actions as possible, so you spend only the minimum amount of time on your accounting. Bizyness offers advanced settings that are simple to set up. You can also combine the accounting software with even more sophisticated automation tools, such as Zapier.

The best proof of software’s effectiveness is to test it. Bizyness offers a fifteen-day trial period, without requiring your credit card, giving you access to all its features. This way, you’ll be certain it fully matches your needs.