20 Best Construction Accounting Software & Why To Use It

In an industry as dynamic as construction, the precision of financial management is not just important, it’s critical. As projects grow in complexity and scale, so do the challenges of tracking costs, managing budgets, and ensuring compliance. Yet, many construction businesses still rely on outdated accounting methods, risking financial mismanagement and inefficiency. If you’re one of those businesses, it’s time to reconsider your approach.

The good news? There’s a wealth of specialized construction accounting software designed to streamline your processes, enhance accuracy, and provide real-time financial insights. This blog post dives deep into the 20 best construction accounting software options available today. We’ll explore the latest trends, the benefits of these tools, and detailed analyses to help you choose the right fit for your business. Whether you’re a small contractor or a large construction firm, stay with us to discover how the right software can transform your financial management.

Construction Accounting Software Trends

As the construction industry evolves, so do the technologies that support it. Here are some notable trends in construction accounting software:

Cloud-Based Solutions:

More firms are adopting cloud-based software for real-time access to financial data. This allows teams to collaborate effectively, regardless of location. For example, a project manager can access financial reports on-site using a mobile device, facilitating quicker decision-making.

Integration with Project Management Tools:

Many accounting software solutions now offer integration with project management platforms. This means seamless data flow between budget tracking and project scheduling. For instance, if a project incurs unexpected costs, it can automatically update the financial projections.

Artificial Intelligence (AI) and Automation:

AI is increasingly being used to automate routine tasks, such as invoice processing and expense tracking. This not only reduces errors but also frees up staff for more strategic work.

Mobile Accessibility:

With the rise of remote work, mobile accessibility has become essential. Construction professionals can manage finances from job sites, improving efficiency and responsiveness.

Data Analytics and Reporting:

Advanced reporting capabilities allow businesses to analyze financial data more effectively. Companies can gain insights into cost overruns and budget adherence, enabling proactive financial management.

Why Using Construction Accounting Software Will Benefit Your Business

Investing in specialized construction accounting software can yield significant benefits. Here are some key benefits:

Improved Accuracy:

Automated calculations reduce human error in financial reporting. For example, a construction firm using automated job costing can ensure that every dollar spent is tracked accurately, leading to more reliable financial statements.

Time Efficiency:

With streamlined processes, teams spend less time on administrative tasks. A contractor can generate invoices in minutes rather than hours, allowing them to focus on project execution.

Enhanced Financial Insights:

Real-time reporting offers a clearer picture of financial health. For instance, a small construction company can quickly see which projects are profitable and which are not, informing future bidding strategies.

Better Cash Flow Management:

Construction accounting software can help track cash inflows and outflows, allowing businesses to manage their finances more effectively. A contractor can forecast cash flow needs based on current projects, avoiding shortfalls.

Compliance and Risk Management:

These tools often include features that help ensure compliance with industry regulations. For example, automated tax calculations can prevent costly penalties due to misreporting.

Best 5 Construction Accounting Software for Small Business

The right accounting software can level the playing field for small construction businesses. Here are some of the best options to consider:

1. QuickBooks Online: Renowned for its user-friendly interface, QuickBooks Online offers features tailored to small contractors, including invoicing, expense tracking, and reporting.
2. Sage 50cloud: This software combines robust accounting features with cloud functionality, allowing small firms to access their financial data anytime, anywhere.
3. FreshBooks: Best known for its invoicing capabilities, FreshBooks also provides expense tracking and project management tools, making it ideal for freelancers and small contractors.
4. Xero: A cloud-based accounting solution, Xero offers a comprehensive set of features, including project tracking and financial reporting, suitable for small to medium-sized construction firms.
5. Buildertrend: Specifically designed for contractors, Buildertrend offers project management and accounting features, enabling users to manage both aspects seamlessly.

Best 5 Accounting Software for General Contractors

General contractors require more detailed and efficient solutions to manage multiple projects and teams. Here are the top software options for them:

1. Viewpoint Vista: A comprehensive ERP solution that integrates accounting, project management, and operational workflows, it is ideal for mid-sized to large contractors.
2. CoConstruct: This software is tailored for custom builders and remodelers, offering tools for project management and financial tracking all in one place.
3. Procore: Known for its project management capabilities, Procore also provides financial management features, making it a great choice for general contractors managing numerous projects.
4. CMiC: A leading construction ERP solution, CMiC offers financial and project management tools designed specifically for large contractors.
5. Foundation software: This construction-specific accounting software provides in-depth job costing and payroll management, suitable for general contractors with complex projects.

List of the 20 Best Construction Accounting Software

Here, we’ll delve deeper into the best 20 construction accounting software solutions, including a brief description of each tool, their advantages and disadvantages. Every of these software varies in features, functionalities, and pricing. You choose the one that best fits your construction company based on your business capabilities and unique needs. Please note that these tools are provided in this blog as reference solutions and are not ranked in any particular order.

Viewpoint Vista:

Viewpoint Vista is a comprehensive ERP solution designed for the construction industry. It integrates accounting with project management features, making it suitable for mid-sized to large companies.

Unique features:

• Integrated project management and accounting.
• Advanced reporting and analytics.
• Mobile access for field workers.

Advantages:

• Comprehensive features for managing finances and projects, strong integration capabilities.
• Strong industry reputation.

Disadvantages: Nothing has advantages without having the other side of it. The major disadvantages of Viewpoint Vista have been identified to be

• High cost.
• Complexity in implementation.

Sage 300 Construction and Real Estate:

This software provides comprehensive financial and project management tools tailored for the construction industry, offering detailed reporting capabilities.

Unique features:

• Comprehensive financial management tools.
• Project cost tracking.
• Payroll integration.

Advantages:

• Excellent financial reporting and management features, good for larger firms.
• Strong reporting features.
• Good for larger firms.

Disadvantages:

• Steeper learning curve, which can be challenging for new users.
• Complexity can be challenging for new users.
• High cost of entry.

QuickBooks Online:

QuickBooks Online is one of the most widely used accounting tools, known for its user-friendly interface and flexibility. It offers various features suitable for small to medium-sized construction businesses.

Unique features:

• Job costing and tracking.
• Invoicing and payment processing.
• Integration with other construction management tools.

Advantages:

• Intuitive interface, extensive support resources, and integration options.
• User-friendly interface.
• Strong reporting capabilities.

Disadvantages:

• May lack some advanced features needed for larger projects.
• Limited project management features.
• Can be complex for large projects.

FreshBooks:

FreshBooks is designed primarily for small businesses and freelancers, focusing on easy invoicing and expense tracking while also offering project management features. It’s a cloud-based accounting software designed for small businesses, including contractors.

Unique features:

• Time tracking and expense management.
• Customizable invoices.
• Client portal for easy communication.

Advantages:

• Excellent invoicing capabilities and user-friendly design.
• Intuitive and easy to use.
• Excellent customer support.

Disadvantages:

• Limited project management features compared to other solutions.
• Limited construction-specific features.
• Can be expensive with higher-tier plans. Pricing starts at $15/month for the Lite plan.

Xero:

Xero is a cloud-based accounting software that offers comprehensive features for financial management, including project tracking and reporting, making it suitable for small to medium-sized construction firms.

Unique features:

• Real-time collaboration with accountants.
• Comprehensive reporting tools.
• Mobile app for on-the-go access.

Advantages:

• Strong financial reporting and good integration options.
• User-friendly interface.
• Good integration with third-party apps.

Disadvantages:

• Not specifically tailored for construction, which may limit some functionalities.
• Limited features for larger construction firms.
• Customer support can be slow at times.

CoConstruct:

CoConstruct is a project management software tailored for custom builders and remodelers, providing project management tools along with accounting features to streamline operations.

Unique features:

• Client scheduling and communication features.
• Budgeting and financial management tools.
• Integrated time tracking.

Advantages:

• Strong project management tools, good for builders and remodelers.
• Great for managing client relationships.
• Easy to generate reports.

Disadvantages:

• Pricing can be high for small businesses.
• Can be overwhelming with features.
• Pricing can be high for small teams.

Procore:

While primarily known for its project management capabilities, Procore also offers financial management features, making it a comprehensive solution for general contractors.

Unique features:

• Real-time collaboration tools.
• Extensive integration options with other software.
• Customizable dashboards and reports.

Advantages:

• Excellent collaboration tools and comprehensive project management features.
• User-friendly interface.
• Strong mobile support.

Disadvantages:

• Higher price point; may be too complex for smaller firms.
• Can be costly for small companies.
• Learning curve for some advanced features.

Foundation software:

Foundation Software is a construction accounting and project management solution tailored for contractors. It focuses on streamlining financial processes, project management, and compliance for the construction industry. It provides comprehensive job costing and payroll management features, ideal for larger contractors.

Unique features:

• Comprehensive tracking of costs associated with each project, enabling detailed analysis of profitability.
• Integrated payroll solutions specifically designed for construction, including certified payroll and union reporting.
• Allows field employees to enter time and expenses directly from the job site.

Advantages:

• Tailored features for the construction industry ensure that users have the necessary tools for effective management.
• Offers robust reporting capabilities to provide insights into financial health and project performance.

Disadvantages:

• Complexity: The range of features can be overwhelming for new users, requiring a learning curve.
• Pricing may be on the higher side, especially for smaller contractors.

Sage 50cloud:

Sage 50cloud is a hybrid solution that combines the strengths of desktop accounting with cloud capabilities, suitable for small to medium businesses.

Unique features:

• Real-time project and financial tracking.
• Integrated reporting tools.
• Cloud-based access for teams.

Advantages:

• Good for small to medium businesses with cloud features.
• Strong financial management features.

Disadvantages:

• Limited scalability for larger firms.
• Can be complex to set up.
• Limited customization options.

CMiC:

CMiC is a leading construction ERP solution that offers comprehensive financial and project management tools, designed for larger contractors.

Unique Features:

• Comprehensive project lifecycle management.
• Financial management and reporting.
• Mobile access for field teams.

Advantages:

• Full ERP capabilities for large organizations.
• Extensive features for large firms.
• Strong integration capabilities.

Disadvantages:

• High cost of entry.
• Complexity in implementation.

eSUB:

eSUB is designed specifically for subcontractors, offering project management, document control, and basic accounting functionalities. One of its greatest advantages is that it has strong document management and project tracking features. And its shortcoming is that it has limited financial reporting capabilities compared to full accounting systems.

Buildertrend:

Buildertrend provides a suite of tools for construction project management and accounting, ideal for contractors managing various projects.

Unique features

• Customer management tools.
• Built-in scheduling and budgeting features.
• Client communication portal.

Advantages

• Excellent for project management and integrates with accounting tools.
• Intuitive interface.
• Excellent customer support.

Disadvantages

• Higher pricing for full features may not suit smaller contractors.
• Limited features for larger commercial projects.
• Mobile app can be slow.

Autodesk BIM 360:

This is a cloud-based construction management software for building information modeling (BIM).

Unique features:

• Advanced project visualization tools.
• Integrated document management.
• Real-time field collaboration.

Advantages:

• Excellent for design and pre-construction phases
• Strong capabilities for coordination and issue tracking

Disadvantages:

• Complexity can overwhelm new users
• Requires a good internet connection

ConstructConnect:

ConstructConnect focuses on bid management and preconstruction solutions but includes financial management features, making it a valuable tool for contractors.

Advantage:

• Strong estimating capabilities which is useful for bidding.

Disadvantage:

• Limited accounting features compared to dedicated solutions.

Jonas construction software:

Jonas offers comprehensive project management and accounting capabilities designed specifically for the construction industry, catering to medium to large businesses.

Advantage:

• Comprehensive features tailored for construction firms.

Disadvantage:

• Higher cost and a steeper learning curve.

Aconex:

Aconex is more focused on document control and project collaboration but can be integrated with accounting tools to provide a comprehensive solution.

Advantage:

• Good for project collaboration and document management.

Disadvantage:

• Less focused on core accounting functions.

NetSuite:

NetSuite is a full ERP solution that includes advanced financial management features, suitable for larger construction firms that need comprehensive oversight.

Advantage:

• Comprehensive financial management and reporting capabilities.

Disadvantage:

• High cost and requires significant training.

SmartBid:

SmartBid focuses on bid management and collaboration, offering tools that allow contractors to streamline their bidding process while incorporating some accounting functions.

Advantage:

• Great for bid management and contractor collaboration.

Disadvantage:

• Limited accounting features compared to dedicated solutions.

Smartsheet:

Smartsheet is a work management platform that’s customizable for construction projects.

Unique features:

• Highly flexible grid layout.
• Gantt charts for project tracking.
• Real-time collaboration tools.

Advantages:

• Easy to use and implement.
• Good integration capabilities.

Disadvantages:

• Limited construction-specific features.
• Pricing can increase with additional features.

PlanGrid:

PlanGrid construction productivity software that allows teams to access project plans and documents.

Unique features:

• Real-time updates on drawings.
• Markup tools for easy collaboration.
• Offline access to documents.

Advantages:

• Easy to use for field workers.
• Fast access to information.

Disadvantages:

• Limited project management tools.
• Can be expensive for large teams. Pricing starts at $39 monthly.

How to Choose The Best Software for Your Business?

Choosing the right accounting software for your construction business involves several key considerations:

1. Identify your needs: Assess your specific accounting needs. Do you require advanced job costing features, or is basic expense tracking sufficient?
2. Budget considerations: Determine your budget for accounting software. Some solutions may have upfront costs, while others offer subscription models.
3. Scalability: Consider whether the software can grow with your business. If you plan to expand, ensure the software can accommodate increased complexity.
4. User-friendliness: The software should be intuitive and easy for your team to learn. Look for demos or trials to gauge usability.
5. Integration capabilities: Ensure the software can integrate with other tools you use, such as project management software or CRM systems.
6. Customer support: Evaluate the level of customer support offered. Reliable support can save time and frustration in the long run.

Looking for expert help? Contact QMK

Navigating the complexities of construction accounting can be overwhelming, especially when balancing multiple projects, budgets, and compliance requirements. This is where QMK comes in. As a leading accounting firm specializing in the construction industry, QMK offers tailored solutions designed to meet the unique challenges faced by construction companies. Here are five compelling reasons to choose QMK for your accounting needs:

Industry expertise:

With years of experience in construction accounting, our team understands the intricacies of the industry. We know the common pitfalls and challenges, allowing us to provide strategic guidance that is both practical and effective.

Customized solutions:

We recognize that no two construction businesses are alike. QMK takes the time to understand your specific operations, challenges, and goals. Our personalized approach ensures that we implement accounting solutions that align with your unique needs, enhancing your overall efficiency.

Comprehensive services:

From job costing and payroll management to tax planning and financial reporting, QMK offers a full suite of accounting services. We handle all aspects of your financial management, so you can focus on what you do best building and managing projects.

Proactive support:

At QMK, we don’t just react to your needs; we anticipate them. Our proactive approach means we stay ahead of industry trends and regulatory changes, helping you remain compliant and competitive. We provide ongoing support and insights that empower you to make informed financial decisions.

Technology integration:

We leverage the latest accounting technologies and software tailored for the construction industry. By integrating cutting-edge tools into your accounting processes, we enhance accuracy, streamline operations, and improve your financial visibility, ultimately saving you time and money.

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FAQ

What accounting method do independent contractors use?

Independent contractors typically use one of two primary accounting methods: cash-based accounting or accrual-based accounting. The choice between these methods often depends on the contractor’s business size, complexity, and personal preference.

• Cash basis accounting: Under the cash basis method, income and expenses are recorded when cash is actually received or paid. This means that revenue is recognized only when payment is received from clients, and expenses are recorded when they are paid out.
• Accrual basis accounting: The accrual basis method records income and expenses when they are earned or incurred, regardless of when cash changes hands. This means that revenue is recognized when a service is performed, and expenses are recorded when incurred.