One of the most crucial elements of a successful firm in the construction sector is accounting. Every new contract adds to the list of costs and revenues, adding new accounts to keep track of, inventories to track and manage, and bills to send and receive.

If you are a construction company owner, you are well aware of the amount of time and attention required for the job. Accounting and bookkeeping frequently cause additional stress, which reduces your time for running the company and increases the possibility of accounting errors.

For this reason, a large number of people in the sector are currently searching for the top construction accounting software. When appropriately applied, it can simplify your regular finance procedures and assist you in controlling project expenses.

Top Construction Accounting Software

It is important to examine the needs of your organisation when deciding which construction accounting software to utilise. All these solutions are excellent, but depending on your situation, some may be more suitable than others. A brief summary of the best choices currently offered is provided below:

Fresh books

FreshBooks is the only construction accounting software you need if you’re looking for something robust but user-friendly. This adaptable, cloud-based tool removes the headache and stress out of accounting for your construction company with a selection of packages and services.
With FreshBooks, managing financial insights and reports, effortlessly capturing data from receipts, tracking spending automatically, and maintaining the efficiency of your construction projects are all possible. Whether at the office or on the job site, creating, viewing, editing, and sharing the necessary documents is made simple by FreshBooks’ numerous app connectors, cloud-based system, and project management capabilities.

Particularly in your line of work, time is money. You won’t have to waste time trying to “talk” to a chatbot or sifting through a ton of self-help materials to find the answers you need with FreshBooks’ great customer care team. To ensure you don’t have to deal with needless downtime, give us a call and speak with a real person.

Unique Features: Several characteristics of FreshBooks differentiate it from the competition, especially for small and medium-sized construction companies:

• Adaptable Chart of Accounts that expands with your company.
• In-depth, practical insights that influence your business’s future.
• Cloud-based, secure collaboration enables simple communication with your bookkeepers, accountants, and other employees.
• Quick, simple, and fully compliant financial records

Quick Books

Many in the construction business use QuickBooks because it’s one of the most widely used accounting software packages. Depending on your demands, QuickBooks provides four service options that let users track their revenue and expenses, take a picture of and file a receipt, and generate reports. Although some larger organisations also use QuickBooks, small and medium-sized enterprises are the program’s target market.

QuickBooks can be used as construction accounting software, depending on your requirements. In comparison to specifically designed construction accounting software, it can be cumbersome even if it provides the ability to define a schedule of values for progress billing. It can be difficult to get a prompt answer through their customer care line, which is something busy construction companies should take into account.

Unique Features: Among the distinctive elements that make QuickBooks stand apart are the following:

• Tools for managing inventories
•  Tracking in real time
• Payroll functionalities
• Tax preparation that is automated

Sage

Sage is promoted as a simple bookkeeping program for small companies. To top it all off, they provide an intuitive dashboard that lets you monitor your earnings and expenses, integrated payments, live customer support representatives, and an easy-to-use interface.

For a long while, Sage served as general contractors’ go-to accounting program, but as other platforms have emerged, its use has declined. Although it’s less expensive than some alternatives, some of the deeper, more insightful analytics and data you might require are sacrificed in the process.

Unique Features: Not all construction accounting software has the same functionality as Sage does. These features include:

• Audit trails
• Free bank feeds
• Unlimited users
• Unlimited tracked transactions 

Procore

Different from the other software options on the list, Procore is just focused on the construction business. It is noteworthy that Procore is primarily a project management tool rather than a traditional accounting program, even if it does provide financial management capabilities and reporting. Procore can be sufficient to maintain your financial records in order and under control, depending on your requirements. As long as you have the money to pay for their services, this well-known instrument performs the task satisfactorily.

Unique Features: Procore is a tool designed exclusively for the construction business, so it includes several special features that you won’t find anywhere else, like:

• Monitoring and documenting various financing sources
• Simple integration with your solution for capital planning
• Using portfolio insights in conjunction with real-time information to control risk
• Management of project budget.

Foundation

Another well-liked choice for contractors and small to medium-sized construction companies is Foundation, which is billed as the best construction accounting software in the United States. They provide thorough work tracking for materials, money, and time as well as payroll and demand reporting. Foundation works with construction companies of all sizes, from start-ups to major corporations. They also provide a number of connectors to make managing a construction company’s daily tasks easier.

Unique Features: Construction companies can greatly benefit from the following special features that Foundation offers:

• Robust payroll systems to facilitate the management of union benefits, diverse state regulations, and tax jurisdictions.
• Capabilities for accounting of subcontractors.
• Simple tracking and administration of general ledgers.
• Easy-to-use CPA audit/review instrument.

Standards for Choosing the Best Software for Construction Accounting

There are a few important things to consider while selecting the finest construction accounting software for your company. Since not every program will be ideal for every type of business, setting clear goals in front will help ensure a seamless transition. Some things to think about are as follows:

Key Functionality: Standard accounting software does not always have the functionality required by the construction industry. Assume, for instance, that your business bills progress on huge projects; each invoice is deducted from the job’s overall cost gradually until the remaining balance is paid. If that’s the case, you need to be able to track the ongoing total using your construction accounting software by having it generate a schedule of data. Making Job Cost Reports is another essential aspect to search for.

Scalability: It makes sense to plan for your accounting system to expand over time, just like you do with your firm. You may have to settle for less or eventually transfer to another construction accounting solution because some of them have restricted scalability. To make sure you’re always prepared to take on extra work, you may update and modify your plan as needed with tools like FreshBooks.

Project Management Capabilities: One of the most important aspects of managing a construction company is project management. Thus, it only makes sense to take this work into account while selecting a software solution.

Integrate with other software: Integrations with other apps and software might make your daily life easier, depending on your needs. Think about the apps you now use and keep a look out for integration-rich software.

Reporting and Analytics: Accounting wouldn’t exist without reporting and analytics. These assist you in keeping tabs on, overseeing, and strategizing your company’s finances. Seek out the top accounting software that provides you with workable, real-time, big-picture insights.

User-friendliness: Different accounting software has varying learning curves. In your search, attempt to find a balance between usability and functionality. We suggest FreshBooks accounting software for construction if you’re searching for the ideal compromise.

Customer Support: You occasionally require some assistance. While looking through the construction accounting software, pay attention to the customer assistance options. When necessary, how soon can one make contact with a real person? A little preparation will help you prevent expensive on-site delays.

Cost: Not to be overlooked, think about your budget. The majority of these accounting choices have relatively minimal monthly costs, but over time, they can add up.

Conclusion

A solid professional reputation, high-quality work, prompt delivery, and precise forecasting are just a few of the many factors that determine success in the construction sector. On the job site, nevertheless, these crucial characteristics of a prosperous construction company don’t stop. You’ll start to directly witness the fruits of your growth if you can apply the same perfection to your bookkeeping. So, what is the fix? Construction software for accounting purposes.

Accounting software may revolutionise your daily routines when utilised correctly (and carefully selected), saving you time, money, and frustration while eventually allowing you to concentrate on your strengths. We usually advise taking your company’s unique needs into account while looking through accounting software and contrasting them with the feature lists of each program. Otherwise, you can take assistance of our construction accountants for managing financial complexities of the project. When it comes to something as significant as the financial stability of your business, making an educated choice pays well.