Construction software helps companies automate critical processes such as takeoff, estimating, project management, and accounting, and integrates various applications and accounting. These tools can help firms modernize, grow their business, and operate more efficiently.
In this part, we’ve rounded up the best construction accounting software to fit different business needs, from simple software with one crew to advance ones for midsized construction companies.
Sage 100 Contractor: Best Construction Accounting Software
Sage 100 Contractor is cloud-based accounting and enterprise resource planning (ERP) software designed to help contractors manage their operations effectively. It provides a terrific solution for startups and small organizations, including general contractors, service contractors, and home builders who need an all-in-one solution for powerful accounting and project tracking at a reasonable price.
Full bookkeeping software: Sage 100 Contractor is a single, comprehensive solution that combines project management and accounting in one platform. That means you won’t have to purchase separate software for managing and tracking projects and bookkeeping. You can get access to the chart of accounts, financial reports, journals, banking, ledgers, inventory, payroll, and others.
Job costing: This feature is integrated with all of its modules so it’s easy to review job costs information by generating cost reports and tracking job cost journals, labor journals, and billing summaries.
Project management: Sage 100 Contractor includes project management modules that give you access to documents and task lists operation status, daily field reports, and correspondence.
Sage 100 Contractor is a good fit for
Sage 100 Contractor is a solid choice for small contractors looking for an affordable accounting solution with basic ERP features. It is suitable for companies that have outgrown generic accounting software, the suite of applications encompasses the entire construction cycle including accounting, estimating, project scheduling and management, job costing, and service management at the same time.
However, it wasn’t designed to be a full-fledged ERP system so it doesn’t track employee location, which can be a drawback if you have teams that work in the field. Besides, there is no available mobile app version so if you run the business from the road or outdoor, you need an alternative.
Below are Sage 100 Contractor Pros and Cons:
Create customized reports from scratch
Take time to set up and learn
Easy-to-understand job income statements
No mobile app for accounting functions
Include ERP features
Time tracking doesn’t track employee location
Assistance transferring data from QuickBooks
No client portal
QuickBooks Online: Best Overall Accounting Software for Construction Companies
QuickBooks Online is cloud-based accounting software for small construction companies that enables you to track revenue and cost by each project. It is a powerful solution, especially in terms of banking management, reporting, accounts payable, accounts receivable, inventory, and project accounting.
Class and location tracking: QuickBooks Online allows you to create classes to classify your transactions. Classes can be a profit center, such as the roofing division, or an aspect of your operations like the assembly department. You also set location to track income and expenses per location.
External accountant access: Unlike other industries, construction accounting can be more complicated so you need to hire a certified public accountant (CPA) and experienced bookkeeper to manage your books and fix your records to comply with reporting requirements for the IRS. With the external accountant access feature of QuickBooks, you can invite them to manage your financial aspects.
Invoice tracking: The invoicing process is a core part of construction accounting. With QuickBooks Online, you can track clients' invoices and add billable hours to invoices. Its invoicing tracking feature can help you manage invoice status, collection reminders, and payments.
However, the biggest shortcoming is that you can not compare estimated costs to actual job costs. Below here are the pros and cons of this tool:
Provide efficient bank reconciliation
A bit expensive compared to other similar alternatives
Strong management features
Cannot track inventory assemblies like QuickBooks Desktop
Can generate a wide selection of accounting reports
The mobile app can’t record time worked
Capable mobile app with many bookkeeping features
Cannot compare estimated to actual project costs
P&L bu class, location, or project
JOBPOWER is accounting software designed especially for general contractors, subcontractors, and homebuilders. It can be deployed as an on-premise or cloud-based software that helps you manage and track job costs, payables, receivables, union reports, budgets, subcontracts, change orders, or more.
Job costing and budgeting: JOBPOWER allows you to track all job-related details in a single job costing platform. You can create budgets in the software or import data from Excel or ConEst. Moreover, you can track projected vs actual budgets and change orders, and process lien waivers as the job progresses, including detailed job cost history, job ledger summary, committed cost, and job financial status.
Cloud accessibility: You can get access the platform wherever you are, whether in the office, the field, or at home. JOBPOWER is installed on a remote hosted server, and each user is assigned a Cloud login so you can access the system by your computer, laptop, and mobile devices as long as you have an internet connection.
Expanded accounts receivable (A/R) and accounts payable (A/P) management: JOBPOWER offer expanded A/R and A/P features to help your construction company to keep track of customer invoices and vendor billings.
More affordable than other similar programs
Not suitable for multiple users with the same job role
Can be deployed as an on-premise or cloud-based system
Not upfront pricing
Integrated job costing and accounting
The mobile app has limited functionality
Remote time entry and employee tracking with JOBPOWER Mobile
No built-in estimating system
Frequently Asked Questions:
What is accounting software for construction companies?
Construction accounting software is a specific type of software tailor-made to fulfill the unique and sophisticated functions required in the construction industry. Typically, it’s used by construction company owners, their bookkeepers, and CPAs.
In addition to keeping track of accounts payable and accounts receivable, construction accounting software help construction contractors keep track of expenses per job, as well as performs payroll tasks, monitors wages, and maintains compliance with state and national laws and other industry-specific functions.
How much does construction accounting software costs?
It can be difficult to find accurate information about construction accounting software. The majority of software vendors customize their prices depending on various factors.
Some products have a transparent pricing system. For example, Quickbooks Online Plus starts as low as $40 per month, with optional payroll modules that can be included with an additional monthly base and per-user charge. QuickBooks’s Advanced starts at $90 per month, with additional features like business analytics, automated workflow, and on-demand online training.
However, the vast majority require construction to determine the implementation cost and subsequent monthly or annual fee per user. The best way to know what a package will really charge is to talk to representatives of the software companies directly. Another way is to do some research, some vendors list basic pricing information online, which can give you a sense of the range of options available.
For companies that need to perform basic accounting tasks, most software options will cost between about $100 and $300 per user per month.
For bigger companies who need the full functionality of an enterprise solution, the price can be $2,000 for an initial implementation plus monthly charges of $199 per user. To get the accurate pricing information you should ask for quotes from multiple vendors to find a solution that will meet your construction company’s beads within your budget.
How to choose the best construction accounting software program
There are some crucial aspects that contracting companies should evaluate when comparing construction accounting software such as the modules included, how easy their software is to learn, their reputation and services, and the price.
Company reputation and customer service: check out their company with impartial reviews before you decide to implement their software. Customer services is a significant factor, so you can ensure to access knowledgable customer services faster to solve problems or guide you through a solution.
Accessibility and deployment: These days, many software providers are increasingly focused on cloud-based installations. Therefore, users can access the software anywhere with an internet connection. If your companies are working in different fields, a based-cloud software may be more convenient.
Features: You will likely need to share information about your company’s size, goals, and software needs to find a software package that includes the right functionality. Sone niched in the construction industry requires tailored features to specific workflows.
Pricing: It’s mentioned above, depending on your business’s needs, the pricing can vary substantially. It is essential to obtain quotes from multiple vendors to find the fittest system that adds value for the company while remaining within the budget.