Construction accounting software is essential for construction companies to effectively manage their unique accounting needs. Unlike standard small business accounting, construction accounting requires tracking labor costs, subcontractors, materials costs, change orders, and other project-specific variables for each construction project. In addition, construction accounting software must generate financial statements such as balance sheets, income statements, and cash flow statements. Here's a list of the top construction accounting software solutions available for small-to-medium-sized construction companies.
Some Key Aspects of Construction Company Accounting and Why They Need Construction Accounting Software
Construction companies have unique accounting needs that require specialized software construction accounting software. These are the various aspect of construction company accounting so they should utilize construction accounting software tailored to their need.
Construction projects require individual tracking of labor costs, subcontractors, materials costs, change orders, and more. Construction accounting software allows for project-based accounting, where financial transactions and expenses can be accurately allocated to specific projects, ensuring proper cost management and project profitability analysis.
Complex Financial Statements
Construction companies need to generate financial statements such as balance sheets, income statements, and cash flow statements to assess their financial health and make informed business decisions. Construction accounting software provides the tools to generate these complex financial statements in a timely and accurate manner, helping construction companies have a clear understanding of their financial performance.
Real-time Financial Information
Construction companies require real-time financial information to make informed decisions about their projects and overall financial health. Construction accounting software provides real-time financial data and reporting, giving construction companies up-to-date insights into their financials and enabling them to take proactive measures for financial management.
Project Management Integration
Construction accounting software often integrates with project management tools, allowing construction companies to streamline their financial and project management processes. This integration ensures that project-related expenses, invoices, and payments are accurately tracked and recorded in the accounting system, eliminating the need for manual data entry and reducing the risk of errors.
Customization for the Construction Industry
Construction accounting software is specifically designed for the unique needs of the construction industry, providing features and functionalities tailored to construction businesses. These may include job costing, progress billing, lien waivers, retention tracking, and other construction-specific requirements, making construction accounting software a specialized and essential tool for construction companies.
Budgeting and Forecasting
Construction companies need to create accurate budgets and forecasts for their projects to ensure profitability and financial success. Construction accounting software provides tools for creating and managing budgets, forecasting cash flow, and monitoring project costs in real-time, helping construction companies stay on track with their financial goals.
Compliance and Taxation
The construction industry has specific compliance requirements and tax regulations that construction companies need to adhere to. Construction accounting software helps construction companies stay compliant with industry regulations and tax laws by automating compliance processes, tracking tax liabilities, and generating accurate tax reports, ensuring that construction companies remain in good standing with the authorities.
Time-saving and Efficiency
Accounting software automates financial processes and reduces manual data entry, saving time and effort for construction companies. This allows construction companies to focus on their core competencies and projects, improving overall operational efficiency and productivity.
Accounting software is a critical tool for construction companies due to the unique accounting needs of the construction industry. It provides features such as project-based accounting, complex financial statement generation, real-time financial information, integration with project management tools, customization for the construction industry, budgeting and forecasting capabilities, compliance and taxation management, and time-saving efficiencies. Investing in accounting software can significantly enhance financial management for construction companies and contribute to their overall success in the industry.
Widely Used Construction Accounting Software
Best for companies that need accounting software with a focus on project management. Buildertrend offers three plans: Essential, Advanced, and Complete, with features such as project planning, financial management tools, and centralized processes. Pricing starts at $99 per month for the Essential plan.
Best for construction firms that need a customized package that includes accounting, job costing, project management, and more. ComputerEase offers job-costing software and features for project management, purchasing, payroll administration, and equipment tracking. Contact ComputerEase for pricing information.
Best for construction companies that need all-in-one software solutions. Premier offers integrated modules for accounts payable, financial management, document management, subcontract management, job costing, and more. Pricing starts at $249 per user per month, with options for annual commitment and implementation fee.
Best for construction project managers. Procore is a cloud-based software that offers bid management, design coordination, project management, financial management, and more. Procore pricing depends on the customer's unique needs, and custom packages are available.
Best for those who want an automated accounting solution. QuickBooks Online offers features such as project tracking, expense tracking, and financial reporting, with pricing plans starting at $25 per month.
Sage 100 Contractor
Best for firms that want a streamlined, construction-specific software package. Sage 100 Contractor offers features such as job costing, project management, and financial reporting. Contact Sage for pricing information.
Best for construction companies that want a DIY solution at a budget price. Xero offers features such as project tracking, invoicing, and financial reporting, with pricing plans starting at $20 per month.
Best for those who want to spend the least amount of time managing their books and accounting. Wave offers an easy solution to make their bookkeeping process easy their auto-generated report feature suit every small business and they give the option to extract dozens of reports.
Accounting software is crucial for construction companies to effectively manage their unique accounting needs. The listed accounting solutions offer various features and pricing options to cater to the specific requirements of construction businesses. It's important to thoroughly evaluate and choose the right accounting software that best fits the needs and budget of your construction company.
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