Your Best Guide for Construction Accounting Software in 2023
Updated: Jul 3
Are you in the construction industry? If so, you might have seen that keeping track of everything is a big job. There is takeoff, estimating, project management, and accounting.
Wouldn't it be great if you had a helper to do all that?
That is what construction accounting software does. It is like a helper that does not sleep, making sure everything in your business is working smoothly.
We looked at many of these helpers (software) and picked the best ones for different construction companies. Whether you are just starting or have a bigger company, we have got you covered!
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.
Features
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 outdoors, you need an alternative.
Here are the pros and cons of Sage 100 Contractor:
Pros | 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 |
>> Learn more: Sage 100 Contractor Reviews - Pros and Cons
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.
Features
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 cannot compare estimated costs to actual job costs.
>> Learn more: Easy Accounting for Construction with QuickBooks Online
Best fit for...
QuickBooks Online is ideally suited for small to mid-sized construction companies seeking a reliable, cloud-based accounting solution with extensive reporting features. Its ability to integrate seamlessly with a multitude of other software platforms makes it a versatile choice for businesses looking to automate and streamline their accounting and financial management processes.
Pros | Cons |
|---|---|
Efficient bank reconciliation | A bit expensive compared to others |
Strong management features | Cannot track inventory assemblies like QuickBooks Desktop |
Generates a wide range of accounting reports | Mobile app can’t record time worked |
Capable mobile app with many bookkeeping features | Cannot compare estimated to actual project costs |
JOBPOWER: The Accounting Helper Designed for Contractors
JOBPOWER is accounting software designed especially for general contractors, subcontractors, and home builders. It can be deployed as on-premise or cloud-based software that helps you manage and track job costs, payables, receivables, union reports, budgets, subcontracts, change orders, or more.
Features
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 offers expanded A/R and A/P features to help your construction company to keep track of customer invoices and vendor billings.
Pros | Cons |
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 | Pricing isn't upfront |
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 |
PROCORE: Enhanced Financial Visibility for Every Project
While Procore is known for its project management prowess, it also stands out for its integrations with leading accounting systems, providing valuable financial insights to manage your construction business effectively.
Features
Accounting Integrations: Procore seamlessly syncs with many popular accounting systems, ensuring real-time, accurate financial data.
Financial Reporting: Procore offers detailed financial reports, allowing you to keep a close eye on your project budgets, costs, and overall profitability.
Change Order Management: Procore's platform allows for the streamlined handling of change orders, ensuring that all adjustments are reflected in your accounting system promptly.
Best fit for...
Procore is an excellent choice for construction businesses seeking a strong accounting-integrated solution. It's best for those who prefer their current accounting software but want to enhance project-level financial tracking.
Pros | Cons |
|---|---|
Efficient accounting integrations | Primarily a project management tool |
Detailed financial reports | More expensive than other options |
Streamlined change order management | Requires an existing accounting system |
VIEWPOINT SPECTRUM: A Single Source of Truth for Your Construction Business
Viewpoint Spectrum goes beyond just accounting—it provides an integrated solution for managing your entire construction business. However, its accounting capabilities shouldn't be underestimated.
Features
Integrated Accounting: Viewpoint Spectrum offers a full suite of accounting tools, from tracking accounts payable and receivable to in-depth financial reporting.
Job Costing: Gain complete control over your project costs. Viewpoint Spectrum allows for real-time job costing, ensuring that your budgets stay on track.
Document Management: Handle invoices, contracts, and other financial documents easily with Viewpoint Spectrum's document management features.
Best fit for...
Viewpoint Spectrum is a perfect fit for larger contractors seeking an all-in-one solution that includes robust accounting capabilities.
Pros | Cons |
|---|---|
Complete accounting solution | Might be overwhelming for smaller businesses |
Real-time job costing | More expensive than other options |
Handles all financial documents in one place | Interface may have a steep learning curve |
Frequently Asked Questions:
What is accounting software for construction companies?
This kind of software is designed especially for the unique needs of the construction industry. Usually, construction company owners, bookkeepers, and CPAs use this software.
Apart from managing accounts payable and receivable, it also helps track job-related expenses. The software carries out payroll tasks, monitors wages, and ensures compliance with laws.
How much does construction accounting software cost?
Accurate pricing information for construction accounting software can be hard to find. Many vendors customize their prices based on various factors. Some products, like QuickBooks Online Plus, start at around $40 per month. QuickBooks's Advanced plan starts at $90 per month.
For basic accounting tasks, most software options cost between $100 and $300 per user per month. For larger companies, the price can be $2,000 for initial implementation plus monthly charges of $199 per user. It's best to contact software companies directly or do your own research for accurate pricing information.
How to choose the best construction accounting software program
Key aspects to consider include modules included, ease of learning, company reputation and service, and price. Company reputation and customer service are important. Make sure to check out reviews before deciding on software.
Accessibility and deployment also matter. With many companies focusing on cloud-based installations, users can access the software from anywhere. The features required will depend on your company's size, goals, and needs. Lastly, as pricing varies substantially based on your business’s needs, get quotes from multiple vendors to find the best fit within your budget.
>> More: Construction Accounting 101 - Guide for Small Business Owners
In Conclusion,
Finding the right construction accounting software involves understanding your business's needs. It's crucial to do thorough research and consider various factors. These include accessibility, the range of features, and pricing. By keeping these in mind, you can find the software that will effectively support your company's operations.
Additionally, at CCA, we provide specialized bookkeeping services for contractors. We understand the unique needs of the construction industry. With our expertise, we can help streamline your financial processes and improve your business's financial health. To get started, we offer a free 15-minute consultation. Reach out to us to discuss how our services can benefit your construction business.
