How to Do Accounting for Your Construction Business 8 Steps

The Complete plan starts off at $799 for the first month, then goes up to $1,099 per month after that.

Monitor work-in-progress (WIP) reports

These help you track, manage, and plan around the financial health https://www.bignewsnetwork.com/news/274923587/how-to-use-construction-bookkeeping-practices-to-achieve-business-growth of your business. Look for best accounting software that gives you real-time, big-picture insights with enough detail to work with. They offer an insightful dashboard that allows you to keep an eye on expenses and incomes, integrated payments, human customer support agents, and a simple, easy-to-use interface to top it all off. Both plans allow you to track income and expenses, send invoices and accept payments and maximize your tax deductions with tagging features for expenses. The system also allows you to scan and organize receipts so that all project expenses are kept in one place. The reporting will enable you to track the profitability of each project so that you can stay ahead of costly mistakes.

Top 5 Construction Accounting Software

JOBPOWER is as powerful as Premier in terms of construction management, and it has a pretty decent set of accounting features, like A/P and A/R management. Also, JOBPOWER allows you to set up hourly rates to charge to jobs when owned equipment is used, as well as track repairs and maintenance by equipment. It can be deployed as an on-premise program or as cloud software through private hosting. For an additional fee, JOBPOWER can host your software in the cloud, allowing you to access your files from anywhere. On-premises solutions are best for teams that work in a central location — you essentially download the software to your local computers or servers and can only access it within that internal system.

Cloud-Based

The best construction accounting software makes it easier to track projects fully, estimate building costs and manage teams — whether it’s through built-in tools or direct integrations. That’s why so many in the industry are now on the lookout for the best accounting software for construction. When used properly, it can streamline your day-to-day financial processes, help you manage project costs more efficiently, and improve your efficiency across the board. In this guide, we’ll review the top construction accounting software to use in 2025. Construction accounting software can save you time and help keep you organized when managing your building projects.

Accounting software platforms include bill pay and expense tracking tools to streamline ― and, in some cases, automate ― these needs. When it comes to business invoicing, especially for smaller organizations, you just can’t beat FreshBooks. Time and again when we’ve reviewed accounting software, FreshBooks has led the pack in all things invoicing. We remain enthusiastic about the platform’s single-screen invoice creation interface.

To help you better identify what kind of accounting software will help you simplify your financial efforts and streamline your business processes, we’ve prepared a handy comparison list. Take a look at how each of these providers stacks up, and see how they match the needs of your crew. “We chose Foundation for its array of features, depth of reports, its customization options, and its affordability. Much cheaper than buying software that you have to pay per-user access fees for.

It involves tracking and analyzing costs, managing project budgets, monitoring cash flow, and ensuring compliance with industry-specific regulations. Unlike traditional accounting methods, accounting for construction focuses on project-based financial management, often dealing with long-term contracts and variable costs. Construction accounting software pricing depends on several factors, such as the size of your business, how many total users you have, and construction bookkeeping what modules you want included.

Time Tracking Accuracy

• This may be relevant for larger companies that have multiple projects that they manage simultaneously and need to create comprehensive reports and cash flow data for stakeholders.
• Other software options, such as Procore, may be much more expensive than this due to their percentage-based fees on your job revenue.
• We evaluated our best contractor accounting software across seven major criteria, as discussed below.
• Invest in accounting software that meets the unique needs of construction accounting.
• As a QuickBooks ProAdvisor, Mark has extensive knowledge of QuickBooks products, allowing him to create valuable content that educates businesses on maximizing the benefits of the software.
• It empowers contractors, owners, and speciality contractors with real-time collaboration, visibility, and insights.
• Instead of including built-in construction payroll, the company recommends integrating with ADP (which is also one of our favorite payroll solutions).

QuickBooks is primarily aimed at small and medium-sized businesses, though some larger companies also use it. FreshBooks allows you to automatically track expenses, easily capture data from receipts, manage financial insights and reports, and keep your construction projects running smoothly. If your construction firm is in its early stages and needs the most value for the fewest dollars, choose Sage Accounting. We like that this platform never costs more than $25 per month for access to quotes, estimates, invoicing and other basic accounting features.

• It involves tracking hours worked, calculating wages, managing benefits, and ensuring proper tax withholding and reporting.
• We use product data, strategic methodologies and expert insights to inform all of our content and guide you in making the best decisions for your business journey.
• It also calculates wages with rate tables for prevailing wages (Davis-Bacon) and union payrolls.
• This helps you create accurate invoices for your clients, as well as identify inefficiencies or inaccurate estimates.
• You can invoice clients and make payments directly from the app and monitor the budget to make sure you stay on track.
• With unique project-based structures, long-term contracts, and fluctuating costs, the financial management of construction projects requires specialized knowledge and practices.

Buildertrend offers unlimited document, photo, and video storage in all plans. You can import progress photos or document issues, access files from the mobile app, and share documents with clients and team members. Unlike other similar software, Buildertrend has a document version control, so you can track all changes made and who made those changes. Also, files, photos, and videos are stored in a job-specific folder, so you won’t have to go through a long list to find the files you need.