Best construction accounting software for 2022

How do you know which construction accounting software is best for your business? This article will familiarize you with the best construction accounting software available, both desktop and cloud.

But before evaluating your options, it’s important to understand how accounting software for construction companies is different from most typical businesses. accounting software.

QuickBooks Desktop: Best Desktop Option

The desktop versions of QuickBooks – QuickBooks Pro, QuickBooks Premier, and QuickBooks Enterprise Solutions – all have features that you will find useful in your construction accounting software.

For smaller businesses, QuickBooks Pro will likely meet all of your construction accounting software needs. QuickBooks Pro handles all of the basic accounting functions a small construction business needs, including invoicing, expense management, and financial reporting, and is easily customizable to meet your business needs. You can customize the reports to show job profitability, and the payroll add-on is robust enough for the needs of most small construction companies. This construction accounting software costs $ 399.99, which is probably manageable even for start-up construction companies.

If you want more functionality in your construction accounting software, check out QuickBooks Premier. In addition to the functionality of QuickBooks Pro, QuickBooks Premier produces industry-specific reports, lets you track your inventory costs, and gives you the ability to set prices by customer type. QuickBooks Premier comes at a one-time cost of $ 649.99.

Another construction accounting software option is QuickBooks Enterprise Solutions, the powerhouse of QuickBooks Desktop products. Like QuickBooks Premier, QuickBooks Enterprise Solutions offers industry-specific tools, reports, and features. It also lets you set custom user permissions for up to 30 users, meaning you have full control over who sees what information in your growing construction business. QuickBooks Enterprise Solutions costs $ 1,155 per year.

All desktop versions of QuickBooks are accessible through the cloud using a hosting company like Right Networks. Hosting solutions require additional fees per user.

QuickBooks Online with Build-Specific Add-ons: Best Cloud-Based Option

One of these cloud-based accounting software for builders is QuickBooks Online, which has made huge strides in costing work, project management, and escalating billing over the past few years, but on its own it probably isn’t powerful enough to meet the needs yet. accountants of your construction company. It’s important to note, however, that if you’re using QuickBooks Online as your construction accounting software, you’ll need at least one companion app to help you manage all of your construction accounting needs.

Let’s take a closer look at some of these add-ons that you might find most useful with your construction accounting software:

  • QuickBooks Times provides time tracking for your construction business. Employees can allocate their time to a project, which makes invoicing easier. But TSheets GPS tracking is even more important for businesses with remote workplaces. You can always know where employees are when they check in to work. TSheets costs $ 20 per month plus $ 5 per user per month for their small business plan, which allows from two to 99 users. If you choose to be billed annually instead of monthly, you will save 20%.

  • Hubdoc Removes the hassle of collecting receipts and streamlines data entry. With the Hubdoc app, every member of your construction company can take photos of their receipts and tag them for the appropriate project. With just a few clicks, this data is transferred to your QuickBooks Online file.

  • To know provides all the extra things a general contractor construction company needs: project management, contract and change order management, and job costing. For $ 186 per month or $ 1,788 per year, you can manage up to 150 active jobs. Additional users can be added for $ 15 per month.

  • Co-build is the top rated software for builders and renovators of custom homes. If this is your construction niche, CoConstruct will give you all the tools you need to manage all aspects of your construction business. Like Knowify, CoConstruct integrates with QuickBooks Online. It’s a bit more expensive than Knowify at $ 249 per month for the standard recommended price, but that price gives you unlimited user access and unlimited prospecting and estimation projects.

For large construction companies – especially home builders and renovators – Buildertrend integrated with QuickBooks Online is preferred by Ruth Kohler of Due Diligence Bookkeeping and Kaydee Peterson of Measure Initiative, Inc.

With Buildertrend, you get all the reports you need for your construction business, along with useful streamlining tools like direct supplier invoicing against a purchase order and direct submission and approval of purchase orders. modification. Buildertrend does more than just construction accounting, it also serves as a manager of CRM and email marketing campaigns.

The pricing for Buildertrend is simple: $ 299 per month for up to three users, then $ 39 per month for each additional user. If you have more than 20 users, you can contact Buildertrend for custom pricing.

QuickBooks Online

Core by BQE: Best all-inclusive option

If QuickBooks isn’t a good option for you, another accounting software solution for the construction industry is Core by BQE. Core is all-inclusive project accounting software that handles project management, invoicing, and accounting. Marketed primarily to professional service firms such as architects and engineers, Core is still able to help you manage the bookkeeping for your small to medium-sized construction business. And if you need to manage government contracts, Core is DCAA compliant.

Core can be a bit tricky to set up and use, but there’s an active Facebook group full of users ready to help. And Core has the most flexible pricing of any software on this list, with pricing customized for each type of user you need.

Sage 100 Contractor: the best features

Another construction accounting software is Sage 100 Contractor. Designed for small to medium-sized construction companies, Sage 100 Contractor offers most of the functionality provided by the other construction accounting software mentioned in this article, all in one place. Add-on apps make QuickBooks Online more robust, but the cost of these apps can add up. Sage 100 Contractor gives you the features you need starting at $ 115 per month for one user.

Construction accounting software: what to look for

Construction companies have special accounting needs. While your income statement (P&L) and balance sheet look a lot like any other business’s, you need a lot of important information that lies “below the surface” of these standard financial statements.

Some of the reports that your construction company needs in addition to the income statement and the standard balance sheet are:

  • Labor cost : Labor cost calculation allows you to assign expenses to each individual job. Without calculating the cost of the work, you have no way of knowing which jobs – or types of jobs – are the most profitable for your construction business.

  • Project management: There is more to project management than knowing what phase each job is in, although that in itself is extremely important. Good project management helps you appropriately allocate resources to the different jobs in your construction company at any given time. It also allows you to project your needs for tender projects.

  • Budget and completion analysis: Budget and completion analysis allows you to see how your construction projects are going from a budget perspective. In order to maximize your profitability on a job, you want to deliver it on budget and on time. Without this analysis in your construction accounting software, you may wonder whether or not this will happen.

  • Change order tracking: A construction project without a change order is rare. If you can’t keep up with your change orders, you could easily leave money on the table or have to make costly changes to poorly done work.

These are the most “basic” additional accounting needs of construction companies. Your business may have different needs. So it is even more important to use construction accounting software that fully supports your business.

A version of this article first appeared on Fundera, a subsidiary of NerdWallet.

Previous Mission District is in good financial position to borrow, accounting services say - Mission City Record
Next Sage profits drop 30%, but accounting software boosts organic revenue