Bookkeeping for Construction: Which software to choose?

Precise and up-to-date bookkeeping records unlock the door to financial power for construction businesses. With it in place one can make informed and farsighted decisions. Although, selecting the right 1 book-keeping software for construction can be overwhelming, this article, will walk you through what to reflect on when choosing construction bookkeeping software in 2024.

Key Takeaways

• Construction bookkeeping needs special software for things like job costing, projects management, and changes tracking.
• Main factors when choosing construction accounting software
• Think about integrations, mobile access, and how easy it is to use when picking software for construction businesses.
• Picking the right bookkeeping for construction software can make operations smoother, give clarity to one’s finances, and help your construction company reach new heights.

Factors to Consider When Choosing bookkeeping for construction Software

When selecting construction accounting software, here are a few things you should look at. It must handle job costing, project management, budgeting, and forecasting. It also must integrate with other industry tools².

It has to be user-friendly and work well on mobile. Because very it might ill require frequent use by the workers on the go. You can think of the total cost, which may include setup fees, and subscription fees.

This is the backbone of a good construction business. Reporting is managing money and knowing what decisions to make in a construction business. It should be easy to create reports that fit the construction industry’s needs².

It has to ensure that it adheres to all the industry regulations, including Making Tax Digital (MTD) and the Construction Industry Scheme (CIS). Additionally, the system should be well-integrated with construction payroll, invoicing, and project management so it can follow these rules and run smoothly³.

The security aspect is not less important and includes aspects such as encryption, access controls, and multi-factor authentication MFA. Safety improvement should be continuous with software and compliance with changing laws.

Any construction company as a good practice should have strong customer support. So, it certainly needs software that features quick support and an ability provide excellent service.

With sufficient consideration of these important factors, any construction business could find construction accounting software to help them. This would help them in smart and effecient finance management.

Top Construction Accounting Software Options

For construction businesses, choosing the right construction accounting software will be the backbone of smooth financial operations. Let us evaluate the best choices and see what will be the best option for us.

QuickBooks Online (QBO) and QuickBooks Desktop

Key Features:

• Job costing and project management
• Invoicing and billing
• Time tracking and payroll
• Extensive financial reporting
• Integration with third-party apps
• 4.3 out of 5 stars on GetApp (6000+ reviews)

Basic Pricing:

• QuickBooks Online: Starting at $25/month
• QuickBooks Desktop: One-time fee starting at $399.99

Best Use Cases:

• Small to medium-sized construction companies
• Businesses needing comprehensive construction bookkeeping services with third-party app integration

Ease of Use:

• Moderate: User-friendly interface for basic tasks, but advanced features can be complex.

Cons:

• Can be expensive with add-ons
• Steeper learning curve for advanced features

Sage 100 Contractor

Key Features:

• Construction-specific accounting and project management
• Job costing and budgeting
• Payroll and compliance management
• Extensive reporting and analytics
• 4.1 out of 5 stars on GetApp (300+ reviews)

Basic Pricing:

• Starting at $115/month per user

Best Use Cases:

• Medium to large construction firms
• Companies needing robust construction-specific features

Ease of Use:

• Moderate to Difficult: Requires training to utilize all features effectively; initial setup can be complex

Cons:

• Higher cost compared to other software
• Implementation can be complex and time-consuming

Procore

Key Features:

• Comprehensive project management tools
• Job costing and financial management
• Collaboration and document management
• Mobile access and integrations with accounting software
• 4.5 out of 5 stars on GetApp (2500+ reviews)

Basic Pricing:

• Custom pricing based on company size and needs

Best Use Cases:

• Large construction companies
• Firms focused on project management with integrated financial tracking

Ease of Use:

• Moderate: User-friendly interface for project management; financial features may require more training

Cons:

• Expensive, especially for smaller businesses
• Primarily a project management tool rather than full-fledged accounting software

Foundation Software

Key Features:

• Construction-specific job costing and accounting
• Payroll and human resources management
• Project management and scheduling
• Detailed financial reporting

Basic Pricing:

• Custom pricing based on company size and needs

Best Use Cases:

• Medium to large construction firms
• Companies needing dedicated construction accounting and payroll features

Ease of Use:

• Moderate to Difficult: Powerful features with a steep learning curve; professional training recommended.

Cons:

• High initial cost and complexity
• May require professional setup and training

Buildertrend

Key Features:

• Project management and scheduling
• Customer relationship management (CRM)
• Financial tools including invoicing and job costing
• Cloud-based with mobile app access

Basic Pricing:

• Starting at $99/month for core features

Best Use Cases:

• Small to medium-sized construction businesses
• Companies focusing on project management with financial integration

Ease of Use:

• Easy to Moderate: Intuitive interface for project management; accounting features are less comprehensive.

Cons:

• Limited in-depth accounting features
• Mainly project management focused

QuickBooks Online (QBO) is the best overall due to its balance of comprehensive bookkeeping features, scalability, and ease of integration with other tools. While it might be more expensive with add-ons, its extensive capabilities in accounting and project management, coupled with widespread adoption and support, make it an excellent choice for a wide range of construction businesses.

“With more than 90+ construction accounting software options available, it’s important to carefully evaluate the features and pricing of each solution to find the best fit for your construction business.”⁴

Conclusion

You need to choose the best bookkeeping software for your construction business, as the software has an ability to improve the health of your business. Check on job costing, construction financial management software, reporting, and integration into other construction project management software. This way, you can figure out software that suits your business needs.

Some of the most essential features provided by them are available in all their top products: QuickBooks, Sage, Procore, Foundation, and Buildertrend. They assist on construction businesses in managing their finances better and keeping pace in the industry. These construction accounting software options meet the unique challenges that the construction industry has encountered, such as decentralized production, irregular cash flow, and the need for accurate job costing and revenue recognition⁸.

By selecting the appropriate construction bookkeeping software, you can have a better pricture of your finances, work out better decisions, and drive your construction business’s success. The software we took a look at here about here can help you handle the complex world of construction accounting. It sets your business up for growth in the future.

Source Links

1. Best Construction Accounting Software (2024) – https://www.forbes.com/advisor/business/software/best-construction-accounting-software/
2. Construction Accounting Software Buyer’s Guide: How to Choose a System – https://www.siteline.com/blog/construction-accounting-software-buyers-guide-how-to-choose-a-system
3. Top 7 Factors to Consider When Purchasing Accounting Software – https://www.redskyit.com/construction-software-resources/key-considerations-when-choosing-accounting-software/
4. The 14 Best Construction Accounting Software for Subcontractors – https://www.siteline.com/blog/best-construction-accounting-software-for-subcontractors
5. 5 Best Construction Accounting Software for 2024 – https://www.freshbooks.com/hub/accounting/construction-accounting-software
6. Construction Accounting 101: A Basic Guide for Contractors – https://www.foundationsoft.com/learn/construction-accounting-101/
7. Construction Bookkeeping: 8 Tips for Contractors – https://www.shoeboxed.com/blog/construction-bookkeeping/
8. Introduction to Construction Accounting | Procore – https://www.procore.com/library/construction-accounting-introduction