Specialist accounting for French engineering consultancies (BET): progress billing, Syntec index, Research Tax Credit (CIR), VAT on intellectual services, margin by project. Hayot Expertise Paris.
A bureau d'études techniques (BET) is an engineering and consultancy firm selling intellectual skills: structural studies, MEP (mechanical, electrical, plumbing) design, acoustics, geotechnics, civil works, electrical, thermal performance, and so on. Its accounting and tax profile differs markedly from that of a retailer, a tradesperson or even an ESN (digital services company).
First specificity: progress billing. Unlike a one-off sale or service, BET assignments span several months — sometimes several years for major infrastructure. Billing follows a progress schedule: 20% on signature, 30% on preliminary studies, 30% on execution studies, 20% on acceptance. This requires tracking work in progress (TEC) and revenue earned but not yet invoiced (FAE) to give a faithful picture of the period's result.
Second specificity: the Syntec index. Many BET contracts include a fee-revision clause indexed on the Syntec index (the sector's monthly price-revision index published by INSEE). Correctly applying the revision clause is essential to protect margins against engineering wage inflation.
Third specificity: eligibility for CIR / JEI. BETs carrying out research and development (new methodologies, proprietary calculation software, applied research) can claim the Research Tax Credit (CIR), which refunds 30% of eligible spend (R&D engineers' salaries, 43% of those salaries as overhead, approved subcontracted R&D). For BETs less than 8 years old and qualifying as JEI (Young Innovative Company), additional social-contribution exemptions apply.
Fourth specificity: subcontracting. BETs frequently call on specialist subcontractors (surveyors, drilling contractors, laboratories, freelance draftspeople). Managing subcontracting (contracts, RC insurance, VAT, rebilling to the client) is a major accounting and contractual issue.
A specialist accountant delivers direct value across these four fronts: project-margin steering, VAT compliance and progress billing, CIR optimisation, and subcontracting structure.
Long-term contract accounting in a BET follows the percentage-of-completion method (PCG article 622-4), recognising revenue and profit in proportion to the work actually performed, without waiting for final invoicing. In practice:
This accounting is often neglected by smaller BETs that simply record issued invoices without reflecting real progress. The result: accounts that fail to reflect economic reality, mismanaged VAT, and no useful steering data.
Chargeability on intellectual services: BET fees fall under VAT on debits by default (general rule for services): VAT is due on the invoice date (or on accounting entry), not on receipt. This creates a cash-flow gap between collected VAT (due from invoice) and actual receipt (clients pay at 60-90 days). The BET fronts VAT to the Treasury before being paid itself.
Cash-basis VAT option: a BET can elect for VAT on receipts (DGFIP authorisation), aligning collected VAT with actual receipts and reducing the cash-flow gap. This option is particularly useful for BETs with long client payment terms (public clients, large accounts).
Cross-border subcontracting: if the BET uses a subcontractor based in another EU country, intra-community VAT rules apply (reverse-charge, DES/DEB filings). Errors on these transactions are common and frequently lead to reassessments.
Building works versus intellectual services: a BET that delivers studies AND supervises site works can find itself in a mixed-VAT situation (20% on study fees, potentially reduced VAT on some renovation works). The exact qualification of each service is critical.
The Research Tax Credit is one of the most generous tax incentives available to BETs developing new methodologies, proprietary calculation software or working on innovative engineering projects. Yet it is heavily under-used in the sector through lack of awareness of the eligibility rules.
Eligible spend for a BET:
Example CIR for a mid-size BET:
For BETs that have not yet leveraged this scheme, tens of thousands of euros can typically be recovered over the last three years (the statutory reclaim window).
A BET's profitability is read project by project, not just at firm level. A poorly scoped assignment (under-priced, scope creep) can consume the entire margin of a dozen well-run projects.
KPIs to track per project:
Our firm sets up analytical project dashboards via Pennylane so these indicators can be monitored in real time.
We run your BET's accounting with sector-specific treatment:
Our firm specialises in building and securing CIR claims for BETs:
CIR is one of the most audited schemes in 2026. The quality of the supporting file determines whether the claim survives challenge or is rejected with penalties.
BETs employ technical profiles (engineers, draftspeople, technicians) covered by the Syntec collective agreement (IDCC 1486), one of the most complex in France. Our payroll team masters Syntec specifics:
We support BETs as they grow:
| KPI | Formula | BET target |
|---|---|---|
| Average billable hourly rate | Net turnover / total billable hours | €80-150 / h |
| Utilisation rate | Billed hours / available hours | > 75% |
| Client days-sales-outstanding | (Receivables / Net turnover) × 365 | < 60 days |
| Subcontracting ratio | Subcontracted fees / Net turnover | 15-35% |
| Operating margin | EBITDA / Net turnover | 10-18% |
| CIR / turnover | Research tax credit / Net turnover | 2-8% (depending on R&D) |
| Time to invoice | Days between delivery and invoice | < 15 days |
Situation: Ingé-Structure SAS, 12 staff (8 engineers, 2 draftspeople, 1 assistant, 1 manager), €1.4m net turnover, pre-tax result €140k (10% margin). The firm joined Hayot Expertise after a VAT inspection (the prior accountant had not handled FAE).
Issues identified:
Actions taken (12 months):
Result: first-year total tax saving of €40,600 (CIR + compensation optimisation).
The headline error in BETs without analytical accounting: period revenue is understated (only issued invoices are recorded), VAT is mis-declared, and management steers on a distorted picture. Our monthly FAE process removes this problem.
CIR is perceived as risky by many BET owners, especially since audits have multiplied. In reality, a well-documented file (timesheets, technical deliverables, R&D descriptions) holds up well in inspection. The risk of not claiming is often greater than the risk of an audit with a clean file.
Retention amounts (5% of the contract held by the client for 1 year) are not revenue for the BET until released. Booking them incorrectly (as revenue at billing) artificially inflates turnover and profit. We track retentions contract by contract and only recognise releases on actual receipt.
A forfait-jours arrangement without a valid company agreement or collective agreement (Syntec permits it under conditions) exposes the manager to overtime back-claims over 3 years (engineers can claim 400-600 hours per year). Always secure with a company agreement and documented annual reviews.
Our firm supports engineering consultancies of every size (from a solo engineer to a 30-person practice) across every technical field (structural, MEP, electrical, civil works, acoustics, geotechnics). We master the Syntec agreement, TEC/FAE accounting, CIR and VAT on intellectual services. Free quote within 24h — first CIR audit on the house.
The French engineering and BET sector counts around 6,500 firms generating roughly €18 bn in turnover. 80% are SMEs with fewer than 50 staff. Most BETs work in construction (structural, MEP, electrical) and infrastructure. The Syntec collective agreement (IDCC 1486) covers the entire sector and imposes specific HR constraints (salary grids, forfait-jours, healthcare and provident schemes).
At every monthly close, identify the work performed but not yet invoiced and book it as FAE (revenue earned but not invoiced). Provision losses-on-completion as soon as an overrun is detected. This rigour delivers a faithful result and prevents VAT surprises.
As soon as an engineer works on an innovative project (new method, proprietary software, applied research), open an analytical R&D code and start timesheets. The CIR is filed with the annual tax return, but the supporting evidence is built throughout the year.
Include a Syntec-indexed price-revision clause in every contract longer than 12 months. Calculate and invoice the revision at each anniversary. In 2024-2025, the index moved 4-6% per year — material amounts on large mandates.
Draft a company agreement (or rely on the Syntec CBA), schedule annual reviews, document any overruns. Without compliance, you expose the BET to costly tribunal disputes (overtime back-claims over three years).
Retention amounts (5% of the contract) are not revenue until released. Track them per contract in a dedicated third-party account. Systematically chase the client at the end of the 12-month period to recover the funds.
Calculate the realised hourly rate (net fees / actual hours) and the subcontracting ratio for every project in progress. Monthly monitoring catches drift before it consumes the project's entire margin.
Wherever you are in France, we deploy a 100% digital interface to deliver fast, highly-structured accounting and financial steering.
Samuel Hayot is a French chartered accountant and statutory auditor registered with the Paris professional bodies.
The firm is based in Paris 8 and operates with a delivery model designed for businesses located across France.
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French accounting standards require the percentage-of-completion method: revenue is recognised as work is performed, not just when invoiced. At each month-end close, the accountant records 'factures à établir' (revenue earned but not invoiced) as accrued revenue. If a project is forecast to exceed its budget, a loss provision must be booked immediately. This gives an accurate picture of profitability and avoids VAT declaration errors.
Yes, if the firm conducts qualifying R&D: developing new calculation methods, building proprietary software, applied research for innovative engineering solutions. Eligible costs include engineers' salaries attributed to R&D (with time records), 43% overhead on those salaries, and approved subcontracted R&D. The credit rate is 30% of eligible costs. A mid-size BET typically recovers €15,000–40,000 per year. We prepare the annual CIR claim and defend it in case of audit.
The Syntec index (published monthly by INSEE) measures average engineering sector remuneration trends. Multi-year engineering contracts typically include a price revision formula using this index: P = P0 × (0.15 + 0.85 × S/S0). Firms must calculate and invoice the revision at each contractual anniversary. Failure to do so permanently reduces the contract margin. We integrate Syntec revision tracking into our contract management for every eligible client.
The annual-days arrangement (FAJ) for executives under the Syntec agreement requires: (1) a company-level or establishment-level collective agreement (or reliance on the Syntec CBA which provides for this arrangement); (2) an annual individual review covering workload, the right to disconnect and work-life balance; (3) a maximum cap of 218 days per year. Without these conditions, executives can claim payment of all overtime hours over 3 years. We audit forfait-jours compliance and draft the agreements where needed.
A project's real margin is calculated as: net fees received (or to be received) minus the real cost of hours spent (number of hours × fully loaded hourly cost including salary, social charges and overhead share) minus net subcontracting minus direct project expenses (travel, reprographics). The target margin for a well-run BET is 35-50% of net fees. Below 20%, the project is operating at a loss. We set up project-level analytical tracking to flag drift the moment it occurs.
The SAS is the most suitable form for a BET with several engineer-partners (governance flexibility, ability to issue BSPCE warrants to retain key engineers, dividends at the 30% flat tax). A SARL suits 2-3 partners with simple governance and moderate income. Sole practice (BNC, return 2035) remains possible for solo consulting engineers without staff. We run a comparative simulation before any incorporation or restructuring.
Chartered Accountant, registered with the Institute of Chartered Accountants.
Regulated French accounting and audit firm based in Paris 8, built to support companies across France with a digital and decision-oriented approach.