Construction companies use accounting software like other businesses to simplify financial tasks, maintain regulatory compliance, and support informed decision-making. The construction industry is complex, with multiple moving parts, from labor management and materials to contract obligations and project timelines. For construction businesses, accurate accounting is critical, as it helps manage cash flow, keep track of project costs, and ensure that they remain financially sound. This is where construction accounting software comes into play.
Construction accounting software meets the unique needs of the construction industry. Unlike general accounting software, construction accounting software integrates key features specific to construction projects, such as job costing, progress billing, equipment tracking, payroll, and compliance management.
This software simplifies financial management, offering the ability to track project costs in time, create detailed reports, and simplify the management of multiple projects simultaneously. Construction businesses need to stay organized and profitable while complying with industry standards and legal requirements.
Why is Construction Accounting Software Necessary?
The construction industry operates on tight margins, with unexpected changes and disruptions frequently affecting budgets. Managing costs, tracking subcontractor payments, billing clients, and ensuring regulatory compliance can become difficult but here are the top 2o accounting software to help your construction businesses.
1. Premier Construction
This cloud-based solution empowers you to scale your business by providing instant access to crucial data. With its features, you can manage multiple companies and distinguish between projects. Instantly generate reports to streamline planning and forecasting. The system also integrates with your bank, eliminating the hassle of manual reconciliations and saving you valuable time.
2. CoConstruct
CoConstruct helps firms manage and simplify their projects, covering everything from finances and accounting to task and schedule management. Acting as construction billing software, it offers solutions for managing bids, change orders, and purchase orders. Its tracking tools allow managers to keep tabs on leads, expenses, orders, and any changes to those orders. In addition, CoConstruct provides features for cost estimation, timesheet tracking, team and client communication, budget forecasting, and generating both financial and project reports.
3. QuickBooks
QuickBooks is for small businesses, startups, independent accounting firms, and freelance bookkeepers. Known for its effectiveness in construction business operations, the software helps construction accounting and financial management. It includes advanced tools for tracking expenses, managing invoices, and monitoring sales. It has tools for profit and loss statements, invoice customization, bill payments, and comprehensive financial monitoring and reporting.
4. Netsuite
NetSuite enables you to manage several construction projects simultaneously, offering precise estimates and accurate billing without needing consuming timesheets to track employee hours in the field. With an accounting system that ensures tax compliance, the software also assists in fulfilling licensing requirements, securing necessary permits, and handling passes for construction work. Additionally, NetSuite helps site inspections reduces internal paperwork, and keeps your projects progressing smoothly.
5. Paychex
Paychex offers an online payroll and HR system for various businesses, including construction companies of any size. It also features a time-tracking tool that logs employee attendance and productive hours across multiple job sites. In addition to payroll services, Paychex provides an HR platform that aids businesses in helping compliance with workplace health and safety regulations. Their safety program includes support from an in-house safety specialist, who assists in evaluating potential hazards at your work locations.
6. Gusto
Gusto is an excellent payroll and accounting solution for construction companies working with local and international contractors and vendors. The platform allows you to handle payroll, manage benefits, consult with HR and accounting professionals, and get compliance support. It also offers expense management tools to help you budget for employee essentials like food, housing, and transportation, providing a clear view of your company’s monthly spending.
7. Procore
Procore excels in managing construction projects and provides an optional financial management component for those seeking a fully integrated solution. The platform covers quality control, safety measures, design coordination, and building information modeling (BIM). It enables construction companies to track necessary tasks to maintain project timelines and helps users spot potential issues before they affect the budget.
8. Acumatica
Acumatica offers cloud-based enterprise resource planning software designed to deliver comprehensive business management tools to industries such as manufacturing, construction, distribution, and retail. Its features include project accounting, financial management, and construction management, providing integrated solutions for efficient business operations.
9. Buildertrend
Buildertrend is a cloud-based construction management system that homebuilders, custom builders, specialized contractors, and remodelers use to handle projects more efficiently. It helps construction companies manage more projects by minimizing errors, speeding up project timelines, and boosting client satisfaction.
10. CMiC
CMiC offers a dependable accounting system that companies across different industries, especially construction, can use. It simplifies project management in four key areas: financial oversight, cost tracking, revenue control, and reporting. The cost management module tracks expenses related to labor, equipment, materials, and subcontractor bids.
11. RedTeam
RedTeam directly meets the financial and accounting demands of construction companies. It allows users to handle bids by requesting quotes from vendors in the database, defining project specifications, and evaluating vendor proposals. This system helps managers receive and monitor information requests, efficiently manage and update change orders, and collaborate with teams and clients.
12. Contractor Foreman
Contractor Foreman is for small to medium-sized businesses, including residential and commercial contractors, as well as trade and general contractors. It seamlessly connects with office tools like QuickBooks, Zapier, and MS Project. This integration allows you to maintain your regular accounting reports while using Contractor Foreman to handle tasks like estimates, bid management, change orders, and purchase orders.
13. Sage
Sage 300 Construction and Real Estate enables contractors and property owners to manage properties and projects. The platform converts static data like lease contracts into dynamic information, enhancing communication, expanding leasing opportunities, and adapting to real estate scenarios.
14. DelTek
DelTek offers standout features like mobile tools that let you actively manage jobs, inventory, finances, and staff from anywhere. Its job costing data is for construction and helps you monitor labor, materials, subcontractors, and equipment costs, allowing for more informed decision-making. Additionally, its financial reporting tools support better cost management and cash flow control.
15. ProjectSight
ProjectSight serves mid-sized to large contractors and specialty trades by offering tools like project status tracking, user access controls, cost oversight, and change order management. It enables project teams to oversee construction tasks from a unified platform, reducing risks and ensuring projects are completed on time and within budget.
16. Knowify
Knowify’s subcontractor management system manages your paperwork process, eliminating the need for physical timesheets and reducing the hassle of moving documents between the job site and the office. You’ll no longer need to track down missing forms. The system integrates with QuickBooks, Square, ClockShark, CompanyCam, Billd, Fundbox, Lendflow, and Permits.com.
17. Zoho Books
Zoho Books is an accounting platform for growing businesses, particularly construction firms with small teams. This intuitive tool manages numerous processes directly within the system, enabling you to optimize your time and stay on top of your cash flow. Thanks to its user-friendly design, this accounting platform is easy to navigate. It can produce financial documents and forms, including cash flow statements, balance sheets, and profit and loss statements.
18. Xero
With Xero’s construction accounting software, users can efficiently send quotes, create invoices, track expenses, and manage jobs through the mobile app. The software automates custom invoices, making it easy to record transactions thanks to its user-friendly interface. Additionally, the platform offers various trackers that help accountants stay informed about an organization’s financial health by monitoring cash flow, billable hours worked by employees, and equity ratio debts.
19. Foundation Software
Foundation Software offers a construction accounting system for commercial enterprises, industrial contractors, government agencies, and other organizations that operate without a fixed location. Recognizing that construction accounting varies greatly from standard accounting practices in other industries, this system enables contractors and workers to manage projects across different states, unions, trades, and jurisdictions.
20. Freshbooks
FreshBooks offers a comprehensive e-invoicing solution for construction companies. You can quickly calculate project costs and oversee financial reports with ease. The software provides features within flexible pricing plans for small to medium-sized businesses. You don’t need accounting expertise to create professional invoices; it only takes a few clicks. Additionally, it automates tasks such as client follow-ups, time tracking, and expense management.