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Construction companies work with thin margins, long contracts and major obligations to clients, banks and subcontractors. RSM Croatia helps construction businesses know at any moment how much each project earns, how much cash it needs and which tax obligations it triggers. So you can focus on your sites, with the financial side of every project under control.
Challenges in construction
Construction projects run for months or years, and risks accumulate between the bid and the final account. Rising material costs, labour shortages and stricter client requirements call for reliable numbers at every stage.
- Revenue recognition on long-term contracts – revenue and costs recognised over time under IFRS 15 or Croatian Financial Reporting Standards (HSFI) must be consistent and verifiable.
- Cost tracking by project – without clear analytics per site, it is hard to spot a loss-making project in time.
- Cash flow and guarantees – bank guarantees, retentions and deferred payments weigh on liquidity.
- VAT and subcontractors – the domestic reverse charge in construction needs precise application on every invoice.
- Workforce – hiring foreign workers, field work and per diems call for accurate, compliant payroll.
How we help construction companies
Accounting
Construction accounting: project and site-level bookkeeping, monthly margin reporting and compliance with Croatia's e-invoicing rules under Fiscalisation 2.0.
Audit
Audits of financial statements with particular focus on long-term contracts, provisions and receivables.
Tax advisory
VAT and the reverse charge, the tax position of projects abroad and support during tax audits.
Business plans and studies
Financial models, business plans for bank loans, construction project financing and feasibility studies for your own investments.
EU funds
Support for investment in equipment, digitalisation and energy efficiency, and guidance on the rules of EU-funded projects where you act as contractor.
ESG services
Building energy performance and construction carbon footprint data for green loans and the requirements of major clients.
Why RSM Croatia
From tender to handover
We understand the economics of contracting: bids, interim valuations, retentions, guarantees and the final account.
Numbers, tax and payroll together
Accountants, tax advisers and payroll specialists work as one team. Where we are also your auditor, we provide other services only within the independence rules.
Local insight, global reach
More than 30 years of experience, offices in Split and Zagreb and the RSM network in 120 countries for your projects outside Croatia.
Frequently asked questions
Revenue is generally recognised over the life of the contract, based on progress towards completion. We help you set up a method and records that are consistent, auditable and useful for management in tracking margins.
It applies to construction services between taxable persons, subject to prescribed conditions. We review your contracts and invoices so that VAT is applied correctly and tax audit risks are reduced.
Per diems and field allowances have prescribed tax-free limits and conditions, so they must be recorded correctly and kept separate from salary. We calculate them together with payroll, prepare the JOPPD form and reconcile the data with your accounting.
