Top 7 Construction Accounting Software Platforms for Contractors

Not all standard accounting software has the features you need for the construction industry. For example, suppose your company uses progress billing on large jobs (where each invoice is charged against the total cost of the job over time until the balance is paid). In that case, your construction accounting software needs to be able to produce a schedule of values to help you track the running total. FreshBooks allows you to automatically track expenses, easily capture data from receipts, manage financial insights and reports, and keep your construction projects running smoothly. Thanks to FreshBooks’ many app integrations, project management tools, and cloud-based system, it’s simple to create, view, edit, and share the documents you need—whether in the office or on the job site. That’s why so many in the industry are now on the lookout for the best accounting software for construction.

Construction vs General Accounting

We recommend Jonas Premier, CMiC, or another construction ERP software instead. If How to Use Construction Bookkeeping Practices to Achieve Business Growth simple client collaboration is one of your top priorities, consider making Buildertrend your top pick. COINS’s software pricing isn’t listed online, so you’ll need to contact the company directly for a quote. We couldn’t find any third-party sources with estimated pricing, either, which likely means the starting cost is both highly individualized and quite high.

What Is a Work in Progress Schedule? Construction Accounting

Do your due diligence as a business owner and take the time to understand these requirements verbatim. Under the completed contract method, you recognize revenue or expenses only when the project is completed or substantially completed. Once the project is completed all accumulated https://www.merchantcircle.com/blogs/raheemhanan-deltona-fl/2024/12/How-Construction-Bookkeeping-Services-Can-Streamline-Your-Projects/2874359 accrued revenue and expenses will be recognized on the income statement.

PENTA Construction – Best for Industrial Contractors

When you’re done with the preconstruction phase, you move into project management, operations and financials segments of the software that work concurrently. Put simply, job costing is about tracking a specific construction project’s direct and indirect costs, revenue, and profit margin. To help simplify the finance part of the job, choose a cloud-based program that can be accessed from the field by unlimited users. If your budget is tight, QuickBooks will add value to your financial management without breaking the bank.

How RedHammer Can Help Your Construction Business

This method of accounting tracks income and expenses along with the job they relate to. Job costing is most effective when conducted by your construction accounting software. After the project is completed, construction companies perform a post-job review to analyze and assess the job’s overall profitability. QuickBooks Desktop Enterprise is a good compromise between hefty software plans like Jonas Premier and generic cloud-based accounting software like FreshBooks or Xero. Buildertrend also has the basic construction accounting software features you should expect, like job costing and project management. However, only the pricier Pro plan includes change orders and purchase orders.

• Also, it didn’t do well in pricing because it’s one of the most expensive software on the list.
• For instance, when entering a daily log, you or your team can add files or photos and videos to verify important project details of completed projects.
• If it’s not reimbursed quickly enough though, it can cause a domino effect of cash flow problems.
• A construction management software may sometimes lack a traditional accounting setup of accounts payable, accounts receivable, and a general ledger.
• Striven has features for project and inventory management, job costing, scheduling and more.
• Trusted by over 43,000 professionals nationwide, it integrates seamlessly with industry-specific tools and ensures responsive customer support.