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Construction accounting involves specialized financial management techniques tailored for the construction industry.
These techniques focus on tracking project costs, revenues, and overall financial performance.
One of the main challenges faced by construction companies is effectively managing both their finances and their projects.
This difficulty arises from the complexity of coordinating among multiple stakeholders while complying with regulations.
These solutions enhance efficiency and accuracy and provide real-time financial insights.
We have researched and listed the best construction accounting software to help businesses find the right solution.
Our focus was on features such as industry focus, integration capabilities and user-friendliness.
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Premier Features
Automates repetitive tasks with AI to focus on driving new business value.
Offers tools for managing and sharing construction drawings.
Handles unlimited entities and projects with streamlined financial grouping and automated inter-company transactions.
AI-powered modules provide predictive, intelligent reporting and forecast projects to enhance decision-making agility.
It helps manage risk, secure data, and drive productivity across all project phases.
Procore Features
Applies uniform processes across a portfolio of projects to reduce variability and increase efficiency.
Centralizes communications between office staff, field teams, and trade partners.
Utilizes mobile tools for faster approval processes and accurate on-site communication.
Equipped with real-time tracking of governance and compliance.
Facilitating on-the-go approvals and updates with their intuitive mobile interface.
Procore Pros/Cons
Integrates estimating, accounting, and project management solutions.
Centralizes financial information and processes.
Fred Ode developed the original version of his construction accounting software, which has evolved significantly over the decades.
Foundation includes a payroll and subcontracting module built-in to help construction companies manage their permanent and contractual staff.
Foundation Features
Automated tracking of tax liabilities and support for printing or e-filing 1099s.
Alerts for approaching-due or past-due accounts payable invoices, ensuring timely payments.
Flexible invoice payment options, allowing selections based on due dates, discounts, and holds.
Simplified accounts payable invoice entry with automatic error checking.
Custom report creation with DataGenieTM for tailored financial analysis and job costing.
CPA Audit and Review Software that provides a consolidated view of financials and reports for external CPAs.
Detailed vacation accrual and usage information available to employees through an intuitive eAccess dashboard.
Foundation Pros/Cons
Includes automated alerts to prevent budget overruns.
Instantly generates reports on project cash flows
Lacks updated features
Inconsistent time zone registration leads to inaccurate timecards.
Buildertrend Features
Integrates financial management with features like mobile banking and 1% cashback on company spend.
Utilizes field data to forecast critical costs and manage budget risks effectively.
Distributes individual virtual and physical cards to employees, eliminating shared company card issues.
Offers virtual and physical cards for employees with custom spending limits tailored to their roles.
Eliminates the need for manual check writing or delivery, facilitating immediate online fund deposits.
Keeps bid information connected and updated in real-time with other Buildertrend features.
Provides visibility into the financial health of every job, reducing end-of-year accounting stress.
Enables quicker transactions with online payment options for clients and subcontractors.
Outdated interface
Not ideal for those who have no experience with the use of technology in construction.
This includes general and specialty contractors, heavy/highway contractors, and project owners.
CMiC Features
Eliminates duplicate entries by automatically updating both general ledger and job costing.
Integrates all subcontractor activities into the workflow, making them an extension of the team.
Tracks fleet, compliance, and fixed assets while managing depreciation for resource planning.
Operates on a single database platform to enhance data integrity and accessibility.
Connects financial management with field operations for real-time financial visibility.
Streamlined employee self-service portal for efficient management of time and crew activities.
Enhanced payroll processing with automated tax filing and payroll deductions to ensure compliance and accuracy.
Quickbooks Features
Ability to attach plans, contracts, or photos directly to invoices for transaction documentation.
Batch invoicing capabilities in QuickBooks Online Advanced, increasing invoicing efficiency by up to 37%.
Tagging system for transactions to categorize and run detailed reports for enhanced financial insights.
Dedicated tracking for separate expenses such as equipment rentals and supplies to ensure accurate 1099 filing.
Unlimited, on-demand access to tax advice from TurboTax experts throughout the year.
Audit support with one-on-one guidance from trained tax professionals if audited.
Limited integrations with Meta and Google.
Read more about this software in ourFreshBooks review.
Creation of customizable proposals within FreshBooks to outline project scopes and timelines, helping win new projects.
Automatic payment reminders to ensure timely payments and maintain steady cash flow.
Near-instant invoicing that allows for the creation and sending of professional-quality invoices in moments.
Integrated client reports that provide insights on revenue by client and other critical business metrics.
FreshBooks Pros/Cons
Assigns unique billing portal logins for each customer.
Manages multiple clients under one company with distinct usernames.
Provides customization options by allowing branding with colors and logo.
Restricts electronic payment options by only working with select banks, leaving others unable to process payments.
Excludes advanced accounting features such as inventory management and fixed asset tracking.
Limits access to advanced features by requiring higher-tier plans for essential tools, affecting lower-tier users.
Strategic management of technician workloads and scheduling to optimize service operations and prevent idle time.
Mobile experience with capabilities to digitally convert handwritten notes on tablets and immediate invoicing with digital signatures.
Customizable financial reporting capabilities with a simple drag-and-drop interface for arranging reports.
Advanced accounts payable management through intelligent character recognition (ICR) scanned invoice comparisons with purchase orders and subcontracts.
Progress billing capabilities, including AIA billing, to manage invoices while the job is active.
Detailed tracking of labor, material, subcontract, and equipment costs with configurable user access levels.
Sage 300 Features
Dynamic lease document management to maintain detailed oversight of property management and contractual terms.
Customizable customer portal for service requests and history tracking.
Prevent duplicate data entry by allowing technicians to input work order details directly in the field.
Systematically organize and store all versions of drawings, RFIs, invoices, lease agreements, and contracts.
All-in-one construction management with Sage 300CRE to streamline project delivery and enhance team connectivity.
Document control with Sage Paperless Construction, ensuring organized management and a clean audit trail.
Complicates the process of assigning permissions as an administrator.
AI-ML powered data processing
Integration with CFMA Benchmarker for financial performance comparison against industry peers.
Improved team collaboration through real-time access to project details, facilitating efficient task completion.
Joint check management integrated with purchase requisitions and inventory control for simplified project finance handling.
Streamlined document management with no per-user charges and role-based security access, fostering better collaboration.
Quickbooks
Freshbooks
Sage
What is construction accounting software?
A construction accounting software is a specialized tool for managing the financial needs of the construction industry.
Construction accounting software also includeaccounts payable and receivable functionsto ensure timely payments and accurate invoicing.
Itsfinancial reporting toolsprovide detailed insights, giving companies a clear view of their financial situation.
Customer and vendor management toolshelp maintain strong relationships by efficiently organizing contact data and transaction history.
Document managementcapabilities enhance organization and efficiency by simplifying the storage and retrieval of crucial documents.
What are the benefits of construction accounting software?
Below are the benefits of construction accounting software over generalaccounting software.
This, in turn, ensures that projects remain within budget and profitability is maximized.
This integration facilitates real-time updates, ensuring that all team members stay informed and coordinated.
Cost savingsare achieved through process automation and reduced manual errors, enhancing overall operational efficiency.
Better decision-making:The software supports better financial forecasting by providing detailed financial data and predictive analytics.
This capability empowers teams in the construction business to make strategic decisions that enhance project outcomes and profitability.
A better risk management is realized through comprehensive monitoring and analysis of financial and project data.
How to choose the best construction accounting software?
Equally important is project management integration.
The software should easily connect with your project management tools, allowing for real-time data synchronization.
This integration enhances coordination between financial and operational teams.
Consider how the software handles budget and completion analysis.
This helps you identify and address any financial discrepancies early on.
Change order tracking is another critical feature.
The software of your choosing should efficiently manage modifications to project scopes.
This capability helps maintain financial accuracy as project requirements evolve.
Additionally, evaluate the softwares integration capabilities.
This integration streamlines processes and minimizes the need for manual data entry, improving overall efficiency.
Another vital aspect to consider is the quality of customer support.
Reliable and responsive support is crucial for resolving issues and ensuring smooth software operation.
Lastly, assess the overall costing of the software.
Consider both the initial investment and ongoing costs to ensure that the solution fits within your budget.
Which accounting method is best for a construction company?
For construction companies, the percentage-of-completion method is often considered the most effective accounting approach.
This method allows the recognition of revenues and expenses in accordance with the progress of a project.
It is important to know thesecost accounting termsso that you’re able to use them to your advantage.
As a result, it helps to maintain a clear view of financial health as projects progress.
How does construction accounting software improve productivity?
How do construction companies track expenses?
Construction companies can track expenditures through the budget and completion analysis method.
With this method, they can compare actual costs incurred to budgeted amounts throughout the project life cycle.
Companies may use theseexpense tracking softwareto automate the process.
Some software solutions may not offer the flexibility to tailor the system to the unique requirements of the company.
So, customization option is another major hurdle.
Integration issues are also a common concern.
Finally, localization can pose challenges, especially for companies operating in multiple regions with different regulatory requirements.
Which construction management software offers communication platforms or CRM?
Buildertrend, JobNimbus and Procore offer inbuilt communication platforms.
Acumatica includes CRM features as part of its construction management software.
Sage Construction easily integrates with Sage CRM.
