Each comes with its own advantages and disadvantages, so do your research well to fully understand what each has to offer. Data synchronization across the entire organization is easier with the software. Construction projects involve significant upfront costs, which require careful management and tracking to ensure profitability. Here are some additional questions that you might have when considering construction accounting software.
Sage Intacct Construction and Sage Intacct Real Estate
By offering so many features in one interface, Buildertrend minimizes wasted time, effort and energy that would otherwise be spent trying to bring a poorly optimized collection of apps to heel. All Sage products require a custom quote, so you’ll need to contact the sales team for pricing. Time is money, after all, and time spent completing financial paperwork is time spent away from the job site. Whether you’re a local contractor with a small crew or a general contractor on a large-scale commercial build team, one thing all contractors have in common is the drive to pick up a hammer instead of a pen. Construction companies should use a percentage-of-completion method that recognizes both How Construction Bookkeeping Services Can Streamline Your Projects revenue and expenses as they are accumulated over time. It aligns with the project completion ratio and most lenders or guarantors require this.
Essential Features
Based on our evaluation, Sage 100 Contractor has a pretty impressive set of construction management features in addition to its estimating tool. It took a hit in pricing because the one-time implementation fees are a bit expensive, especially for small contractors. Also, its mobile app could have earned a higher mark if it had accounting features instead of focusing only on project management. We awarded it an above-average score for ease of use because it’s a complicated software, and many new users may easily get overwhelmed by its user interface. While this software may work for some businesses, our QuickBooks Alternatives study surveyed over 4,000 cases of QuickBooks users searching for construction accounting replacements.
Foundation
You can avoid a fair bit of cash flow problems by negotiating more favorable retainage rates/terms with project owners. For example, instead of a fixed 10% holdback on each progress billing, you might negotiate terms that reduce that rate to 5% once the job reaches the halfway point. Holding back retainage is standard on most construction jobs, especially long-term contracts. If it’s not reimbursed quickly enough though, it can cause a domino effect of cash flow problems. To properly record and track retainage, you’ll need to include an account for retainage receivables on your company’s Chart of Accounts. Next, make sure all retainage is accurately represented on your balance sheet.
Best Practices for Construction Companies to Prepare for a GL Insurance Premium Audit
- It’s admittedly difficult to discuss financial software in nearly any vertical without mentioning QuickBooks or one of its companion tools in the Intuit family.
- Alternatively, construction businesses that use the wrong construction accounting software may struggle with integration issues or waste time on repetitive data entry tasks.
- FreshBooks also offers mobile apps for both Android and iOS, providing the same functionality as its desktop accounting software.
- If you work primarily on-site on your local computer, you may not need extensive mobile accounting features.
When used properly (and chosen carefully), accounting software can transform your day-to-day routines, saving you time, money, and hassle and ultimately freeing you up to focus on what you do best. When browsing accounting software, we always recommend considering your business’s specific needs and comparing those against each software’s feature list. Making an informed decision goes a long way regarding something as important as your company’s financial health. Sage was the standard accounting software for general contractors for a long time, but it’s lost popularity as other platforms have become available. It’s a more affordable option than some others, but that also comes at the cost of some of the deeper, more insightful analytics and data you may need. For pricing, we looked at the starting price for the software and whether the company was transparent with its pricing.
- Much cheaper than buying software that you have to pay per-user access fees for.
- The document management module also expands the functionality of the Daily Logs feature.
- This smooth process automatically keeps your files linked and information, such as accurate job costing, available when you need it.
- We’ve reviewed the top construction accounting software for functionalities like job costing and payroll compliance.
- Specialized software addresses these issues by centralizing financial management tasks, optimizing margins, controlling cash flow, and reducing administrative burdens.
Although packed full of useful features, there is a noticeable lack of construction-specific tools and project-based reporting. Take a look at our detailed comparison of some of the best construction accounting software on the market today. Bespoke construction software includes features that facilitate compliance management by automating regulatory reporting, tracking certifications, and monitoring compliance deadlines. Allowing contractors to create detailed project budgets, track expenses, and generate comprehensive reports that provide insights into project performance, profitability, and resource allocation.
- Construction companies looking to use QuickBooks for construction accounting must choose a version that includes QuickBooks Projects, which includes the job costing feature.
- Sage 300 is as comprehensive as it gets with prebuild reports; there are more than 1,400 to choose from.
- These have been designed around the project-based nature of construction work and facilitate billing and working with multiple third parties and subcontractors.
- You can avoid a fair bit of cash flow problems by negotiating more favorable retainage rates/terms with project owners.
- Those in the construction industry can better manage their revenue and expenditure.
- You can get the Plus plan for $49.50 per month for the first three months when it bumps up to $99 per month.
Enhanced Job Bidding and Budget Management
Today’s leading construction accounting platforms offer standard security features including data encryption, secure credential tokenization and more. While human error will always play some role in security breaches, you can be confident in your accounting platform when it comes to keeping your information safe. Construction accounting places a lot of focus on accurate job estimating and costing. It uses a cash basis accounting and construction contractors should consult with a tax advisor to get the best tax strategy for their business. Companies that had client tracking, software integrations and mobile apps performed better than those that didn’t.
