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Construction Industry Solutions – What CIS Can Do For Your Business

Pegasus Construction Industry Solutions is a piece of software specifically designed for the construction and allied industries. It gives you complete control over all aspects of contract management, costing, timesheets through to payment applications and VAT invoicing plus much more.

This industry suffers from severe cost overruns and finds it hard to work within a strict deadline, demonstrating that the need for a driven software is extremely overdue. This software is needed to ensure that tasks and projects are delivered on time and done so within budget.

It conforms to the legislations that are set out by the HM Revenue and Customs, otherwise known simply as HMRC. One important function of the software is that the subcontracts ledger combines the function of the purchase ledger with the regulations and requirements of HMRC’s Construction Industry Scheme. This ensures that subcontractor payments can be entered and when the payment is approved it is possible to produce a payment certificate, which can be sent to the subcontractor along with payment.

One thing that needs to be kept in mind however when it comes to this software is the new legislations that are now in place regarding tax returns. The main aim of changing the legislation when it comes to this sector is to encourage companies to submit their tax returns online. This comes as a disadvantage as systems and software will need to be updated to conform to the new legislations. These changes are as follows:

oCIS Cards and Certificates will no longer be used, instead contractors must verify that any new subcontractor is registered with HMRC. This can be done online.

oSubcontractors will still be paid net or gross of tax, but HMRC will specify which, as part of the verification process.

oThere is also a higher rate tax deduction of 30% that can be assigned to subcontractors if they cannot be matched to records on the HMRC system, as part of the verification process.

oVouchers and Year End returns will no longer be required; these will be replaced with a CIS300 Monthly Return which can be filed online, on paper or as an electronic submission. This details payments and deductions made to all subcontractors. Even when there have been no payments made to subcontractors in a month, nil returns must be made.

oThe CIS300 Monthly Return requires a declaration to be signed that states that the contractor has checked the employment status of each subcontractor, and that payments have not been made under contracts of employment.

oMost subcontractors that are registered under the existing CIS rules will automatically be transferred over to the new system and will not need to re-register.

oFailure to submit the CIS300 Monthly Return on time will result in a penalty being charged, based on the number of subcontractors on the late return. This penalty repeats for each month that the return is late. A late submission of a nil return automatically attracts a £100 penalty. HMRC also states that if the return is received back late, the contractor’s own gross status as a subcontractor may also be at risk.

The Importance of Construction Industry Solutions

It has been said that the average construction project suffers cost overruns and completion often takes longer than expected. Thanks to Pegasus this should never have to be a problem again.

By using the right industry software you will always be able to complete projects on the scheduled time and within your budget. The industry software that I am referring to is Construction Industry Solutions. With this software you will have complete management control over contracts and sub-contractors as well as effective cash management.

Businesses need to track the costs of purchases and may have sub-contractors who require payment under HMRC’s construction industry scheme regulations. You need to keep on top of payments and always remember that effective cash management is key to making a profit. Construction Industry Solutions was written for SME contractors in the construction and allied industries. It was designed to give instant up-to-date information so that you know exactly what is owed and to who as well as knowing when different payments are due.

Cash management is an essential feature of the construction industry and can make a serious difference to the profit of a contract. Construction Industry Solutions captures all of the relevant contract information across all stages of a job so that the statuses of contracts are immediately available.

One of the key features of Construction Industry Solutions is the contract sales ledger. This maintains the details of current payment applications. It allows current and cumulative revenues together with retention, main contractor discount, etc. Also with contract sales ledger payment, when it is received, can be entered in batches and allocated to one or more applications.

Another key feature that will benefit your construction business is contract purchasing. The purchase order processing system allows the costs of a contract to be monitored by raising purchase orders against a specific contract. As deliveries are received and invoiced, the purchase order is updated.

Contract purchasing is integrated with stock control, allowing stock to be ordered from suppliers against a contract. This feature of construction industry solutions allows you to allocate, reserve and issue stock to a specific contract.

This piece of Pegasus software gives you complete control over all aspects of contract management including payment applications, VAT invoicing and cash receipt matching. It is also fully integrated to sales, purchase and nominal ledgers as well as cashbook and payroll. Construction industry solutions also conform to the requirements of HMRC’s construction industry scheme.

The requirements within the construction sector are highly specialised and Pegasus recognises these complex business requirements within the construction sector. Construction industry solutions also integrates with Opera II, sage line 50 and sage mms.

If you have a business within the construction sector and have not yet invested in a software solution to your management aspects and cash flow aspects then it is highly recommended that you do. Software solutions for the construction industry can dramatically change the way in which your business is run for the better giving you more effective management commitments and more control over your finances.

Construction Industry Solutions

Known in short as CIS; Construction Industry Solutions addresses a single market place, the construction industry.

The construction sectors requirements are highly specialised and CIS provide a solution that bests fits each individual client. Clients who use CIS can range from small house builders, specialist companies to the largest house builders in the country.

CIS is designed to give instant up-to-date information that allows you to manage your contracts . Knowing what money is owed to you and when it is due to be paid is one of the critical issues for any business and is no different in the construction industry. CIS eases this administrative burden.

Controlling the costs of a project can be an intimidating task for many businesses in the construction industry. Not only do businesses need to track the costs of purchases, there may be sub-contractors who need to be paid under HMRC’s Construction Industry Scheme regulations, as well as raising and chasing the Payment Applications to clients. Has a Payment Application been certified? How much is the Main Contractor Discount? When is the retention due for payment? How much profit did you make on that job? These are the typical questions asked, but quickly getting the answers can be the problem when running a construction project, which is how CIS can help.

The main features that CIS provide are as follows:

o The system provides complete control for contracts management, from costing
through to payment applications, VAT invoicing and cash receipt matching.

o If you consider the percentage of overruns on construction projects then there is clearly an immense need for software that can help aid in delivering a project on time and within budget.

o Cash management is crucial if you are to make a profit in a contracting environment. Pegasus CIS has been designed to allow up to date information so that you can service and manage your contacts.

o The financial position is always available and can be analysed and integrated using user definable view screens.

o The Management Information System (MIS) provides multiple financial reporting facilities, and because the system was designed with MS Windows in mind it has an export facility to Excel.

A CIS system allows direct costs to be input against a contract, as well as costs derived from labour timesheets, purchases, stock and from sub-contractors. There is also wide ranges of analysis reports available; giving businesses views of the current status of contracts, including job performance and detailed profit analysis reports.

Effective cash management can make a serious difference to the profit on a contract. Pegasus CIS gets you all the correct contract information across all stages of a job so that the status of the contract is ready for you straight away.

CIS differs from most systems as with other systems you are restricted in what data you can view as you are unable to go deeper into the critical information that you need. However a CIS system allows you to look up data from across the system; you can list screens, add filters and export information that you need straight away, which lets you see exactly what you need to.