Best Accounting Software For Construction Industry – Accounting is critical to the operation of any organization, but it is extremely critical in construction. According to this quote, construction companies are more accurately described as accounting firms that simply happen to build buildings.
Each construction project is different, with unique costs, specifications, and supplies, therefore financial data for each project must be kept up to date and the capacity to process various expenses and transactions is important.
Throughout this guide, we’ll go through which software programs are the most effective for dealing with the complexity of construction accounting. We begin by delving into construction accounting and discussing the differences between construction accounting software and other accounting software.
Additionally, the article will discuss crucial features to consider, cost, and the criteria to apply when analyzing your selections before making our advice on the best construction accounting software.
Accounting In the Construction Industry
When compared to the concepts of normal business accounting, construction accounting is different in many different ways, and these differences represent the construction industry’s particular work methods.
Construction companies must employ tools that suit their unique qualities, which is why accounting tools must meet their specific requirements. Three critical aspects that influence how accounting is constructed are as follows:
Construction is a project-driven industry. In addition to client demands and site conditions, each building project has its own unique set of needs. Due to the unpredictability of these variables, construction leaders must be able to manage the expenses and revenues associated with each project in order to make sure that individual tasks are successful and profitable.
Construction is done in a distributed manner. The majority of construction takes place on project sites rather than in a centralized office or manufacturing plant setting. This implies that the resources of the company, such as equipment and manpower, are constantly being moved around in response to project requirements.
As a result, building firms must keep meticulous records of which resources are used in what quantities and at what locations. This is particularly significant in the case of labor, which may be susceptible to different pay levels and laws depending on the state and locality.
Long-term contracts are essential in the construction industry. Many firms sell a single product or service and have very consistent input costs, making it easier to manage money coming in and going out. Construction projects, on the other hand, can take months or even years to complete.
Revenue comes in once a specific amount of work has been performed, whereas costs fluctuate as a project progresses. Over the long run, expenditures and revenues linked with each project must be monitored in order to avoid cash flow concerns for the construction company.
When it comes to addressing these variations, the discipline of construction accounting depends on a few fundamental ideas that everyone assessing software should be familiar with:
- Work Costing
- Revenue Recognition
- Construction Billing
- Payroll for the Construction Industry
What Is Accounting Software for Construction Industry?
The best accounting software for the construction industry is a specific sort of software designed to handle the industry’s sometimes complex functions. It’s usually utilized by the owner of a construction company and their accountant. Accounting software, on the other hand, does more than just keep track of payables and receivables.
It assists the owner of a construction company in keeping track of job expenses, doing payroll activities, monitoring wages, ensuring compliance with state and federal tax rules, and many other industry-specific functions.
How Construction Accounting Software Is Different From General Accounting?
General accounting software is a type of program that allows organizations to keep track of their financial records. For general accounting software, such as Quickbooks, the majority of the functionality is based around a general ledger, which includes accounts payable and accounts receivable, as well as tracking for the business’s assets, liabilities, capital, revenues, and costs, among other features. These technologies help businesses handle the money that comes in and out of the firm on a daily basis.
Construction accounting software, on the other hand, provides many of these capabilities as well as additional modules tailored to the demands of construction professionals.
Project accounting, work costing, and customized progress billing are common construction-specific elements in construction accounting software. Construction accounting software can help you track real-time expenses like supplies and labor, stay on top of income, and manage staff payroll, whether your project is residential, commercial, or industrial.
How much construction accounting software you need vs. how much general accounting software you can get away with depends on the size and breadth of your business. You might be able to get past the limits of standard accounting software if you only have a few projects or projects with similar prices.
Construction accounting software, on the other hand, is practically a need for larger businesses. Companies that are working on multiple projects at the same time, often in separate locations, require specialist modules to track project expenses, understand income, and handle payroll across multiple locations.
How Much Does Construction Accounting Software Cost?
Trying to estimate the cost of construction accounting software can be difficult because most manufacturers do not provide a fixed price for their products. Instead, speak with representatives from possible software vendors to learn about the solutions available for your goals and budget.
While pricing structure normally depends on a few key elements in every implementation, there are a few other aspects that may affect the final price. These factors include the features you want, the number of users, software service charges, and the size or income of your firm.
Best Accounting Software For Construction Industry varies in cost. Typically, you can expect to pay $100 to $500 or more per month per user. Some software companies also charge an implementation fee to onboard and train the users and that fee can be upwards of $20,000.
Keep in mind that many construction accounting software programs don’t offer up-front or tiered pricing but instead offer custom pricing solutions based on the number of users, amount of work or sales volume your company does, and what types of licenses and features you will need.
You can contact the software company directly to share your needs and get a price.
Best Accounting Software For Construction Industry
We have examined the best accounting software for the construction industry and discuss their suitability for a range of business sizes, from sole proprietorships to major corporations.
1. Jonas Premier – Best for Enterprise Customers
Jonas Premier is a branch of Jonas Construction Software, which was formed in 1990 in Canada with the goal of developing a more comprehensive construction software solution. Jonas Construction Software is now a component of Constellation Software, Inc. It is utilized by building firms, real estate developers, homebuilders, and general contractors throughout North America.
The accounting software is cloud-based, which enables it to be utilized by numerous firms and divisions. A configurable management dashboard is also included, which allows different sorts of contractors to use it in different ways, such as HVAC contractors or plumbers, or electricians, for example.
- Reporting on a smaller scale.
- Audit trails in their entirety.
- Several accounting periods are open.
- Accounting for several divisions and companies.
- With general ledger accounts receivable and payable, you may get accurate real-time reporting and tracking.
- Workflow that is automated.
- Scheduling jobs and dispatch.
- Estimating the cost of a job.
- Management of documents, inventory, and equipment.
- Federal remittances as well as year-end reporting. It can also be integrated with programs such as Plangrid, Contigo, and Microsoft Project among others.
The setup of Jonas Premier is simple even for those who have no bookkeeping knowledge. Furthermore, there is free training, webinars, and eBooks accessible to assist you to get started.
Pricing For Jonas Premier
A charge of $20,000 is required to implement the program, which includes training for six weeks, a dedicated account manager, unlimited group training, and unlimited storage of documents.
Monthly: $199 per concurrent user per month on a month-to-month basis.
Annually: $189/month per concurrent user with a one-year commitment.
There are no hidden charges, and everything is included.
2. CMiC – Overall Best Option
CMIC is an Ontario-based software company that has been around since 1974 and provides enterprise-level software for construction companies, general and specialty contractors as well as highway/heavy construction organizations. It’s utilized by both small and large organizations, and it’s designed exclusively for the construction industry. It can be used without any prior understanding of accounting.
In addition to standard functionality like budgeting, corporate and project forecasts, general ledger, accounts payable and accounts receivable, CMiC’s construction-specific accounting systems contain specific construction-specific functionality.
Additional features of the CMiC include powerful capabilities for managing human resources and assets. CMiC consolidates all of the company’s data into a single database, allowing users to generate a number of complex reports that can assist reduce project costs and risks.
CMiC is available as a cloud-based as well as an on-premise solution. CMiC can give in-depth training for any option to help with the transition from the old system.
- Forecasting for the company and projects.
- Ledger general.
- Accounts payable and receivable are two types of accounts.
- Financial regulations that are automated.
- Risk management in the workplace.
- Enterprise planning Asset management.
Pricing is available upon request if needed and is based on the features required, the type of company, the amount of construction business, and other factors.
3. Foundation Software – A Good Option for All
FOUNDATION, founded in 1985, is one of the greatest construction accounting software companies accessible. For organizations of all sizes, FOUNDATION provides comprehensive functionality and a diverse set of modules. FOUNDATION’s base modules cover job costing, wages, ledger, accounts payable and receivable, and purchase order management, just like most other construction accounting software solutions.
It is utilized by both small businesses with less than ten employees and major construction firms with more than 1,000 employees. It’s simple to integrate with any timekeeping, project management, or estimating software you already have.
FOUNDATION is also known for its excellent customer service, which includes industry experience, faster response time, and problem-solving assistance. With so many features and modules to choose from, this customer service can assist you and your team in making the most of the software.
- Estimating the cost of a job.
- The corporate accounting ledger.
- Accounts Payable and Receivable.
- Project and inventory management.
- Unit price billing.
There are no pricing tiers at Foundation. Instead, personalized pricing is supplied based on your company’s type and size, as well as the functions you require the program to accomplish.
4. Buildertrend – Best For Startup
Buildertrend was formed in Omaha, Nebraska in 2006 to provide a better approach to manage building projects. Across the globe, it’s employed by construction businesses, specialty contractors, commercial contractors, and remodelers.
Most organizations of all sizes and bookkeeping levels may utilize Buildertrend, making it an excellent choice for those who are new to construction accounting. In addition, onsite training, internet webinars, and client support are available.
Buildertrend is compatible with a wide range of third-party apps, such as QuickBooks, Dropbox, Facebook, and more. Additionally, there are tools for customer assistance and training as well as a pre-sales process.
- Line item bills are generated automatically.
- Calculator for Lien Processing Return on Investment.
- Accept payments via the internet.
- Compare the estimated and actual costs.
- Use the app to keep track of your finances while on the go.
- Orders for goods.
Basic: $99 per month during the first two months, then $299 per month thereafter; contains financial tools, project management automation, budgeting, and information exchange with staff and clients.
Pro: $299 for the first two months, then $499 per month; contains all of the Core accounting capabilities as well as over a dozen advanced features like comprehensive reporting, bespoke branding, and QuickBooks compatibility.
5. Sage 100 Contractor – Best For Mid-Size
Sage 100 Contractor, formerly Sage Master Builder, is a popular solution for small and midsize construction enterprises. The Sage 100 Contractor features such as job costing, work in progress reporting, certified payroll, and change order management are available in construction accounting software. Other critical functions for your construction business, like estimating and project management, are also covered by the modules available.
Construction professionals who are graduating from a general accounting software program such as Quickbooks to their first construction-specific accounting software will find Sage 100 Contractor to be an excellent fit. Sage 100 Contractor, according to reviewers, provides speedy deployment, excellent customer service, and high-quality user training, making the transfer simple.
- Monthly bank reconciliations that are simple and accurate.
- Unrecorded transactions, mistakes, and differences are automatically detected.
- A compliance system that tracks tax codes, audit history, government reporting, as well as privacy and security.
- Sage Intelligence and Business Insights.
- Credit Card Processing and a Paperless Office.
- Custom Office and Visual Integrator.
Pricing is available upon request.
Construction Accounting Software FAQ
Accounting software can help a construction company function better, stay ahead of the competition, and save money in the long term.
Account software may help avoid potential mistakes and double entries, as well as data entry and categorizing receipts and expenses, in addition to monitoring projects and lowering costs. Accounting software is required for construction companies of all sizes in order to adequately record income and expenses per contract, execute payroll responsibilities, and keep financial data safe.
They’re also a terrific way to maintain financial documents in one place, which makes tax time much easier. However, in order to reduce the danger of human error, boost productivity, and even increase profitability, it’s critical to pick the correct accounting software for your construction company.
When it comes to monthly costs, expect to spend anything from $100 to $500 or more per user. Additionally, some software vendors charge an implementation cost to onboard and educate customers, which might exceed $20,000.
It’s important to note that not all construction accounting software packages provide upfront or tiered pricing, but instead offer unique pricing solutions that are tailored to the needs of the organization based on the number of users, the amount of work, or the sales volume of the company.
You can directly contact the software business to discuss your requirements and obtain a quote.
The size of the construction company and budget are key considerations when selecting accounting software. Larger companies and consumers may prefer certain construction accounting software alternatives, while smaller firms may prefer others.
Prices range from free to pretty pricey options, depending on what you want. Generically, the cost goes up with increased functionality. The ideal way to build a feature list is to start with all of the features you want in a piece of software, and then refine the list to focus on the features you require most.
We compared over 15 construction accounting software products based on a variety of criteria, including affordability, ease of use for those without an accounting experience, payroll and budgeting capabilities, multi-user functionality, and integration with other apps and software.
Because of their comprehensive construction industry-specific functions, flexible price options, and ease-of-implementation, we chose the five that made our list.