A Study on Need of Robust Financial Management and Accounting System with Reference to Construction Industry

D Sowmya; Anitha Malisetty

doi:10.34293/commerce.v11i4.6681

D Sowmya Assistant Professor, Department of Commerce-Corporate Secretaryship, Guru Nanak College (Autonomous), Chennai, Tamil Nadu, India
Anitha Malisetty Associate Professor & Head, Department of Business Administration, Guru Nanak College (Autonomous), Chennai, Tamil Nadu, India https://orcid.org/0009-0007-5217-735X

DOI: https://doi.org/10.34293/commerce.v11i4.6681

Keywords: Construction, Financial Management, Projects, Accounting, Professionals, Profits, Cash Flow

Abstract

In today’s scenario, it’s uncertain to set up a construction firm. Many construction enterprises quit their business operations every year. Due to the specific characteristics of the construction business, running a successful construction firm demands a professional set of financial management abilities and robust accounting system. The construction industry, in contrast to other sectors, faces a number of obstacles, such as: (1) an ongoing demand to create unique projects; (2) the need to construct projects at various sites; (3) the handling of retention and advance payments; and (4) a reliance on subcontractors for the successful completion of operations. This study attempts to know the significance of robust financial management and accounting systems in the construction industry.