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Best Accounting Software for Construction

Our third Sage offering on the list, Sage Intacct Construction, is its enterprise-grade solution tailored to the construction industry. Offering everything that Sage 100 and Sage 300 do plus cloud hosting, AI-powered accounting and analytics and a whole lot more, it’s no wonder why it’s the only AICPA-recommended solution in the space. This Sage product targets larger enterprises in the construction and real estate (CRE) sectors. It’s designed as an on-premises solution, so teams will need the infrastructure to host it themselves. But for teams that can facilitate that, Sage 300 brings a host of critical functions to the table, allowing crews to manage finances, projects, teams, schedules and a lot more.

• The Work In Progress (WIP) schedule is an accounting schedule that’s a component of a company’s balance sheet.
• Procore is a comprehensive construction accounting software platform that streamlines project workflows from preconstruction to close out.
• While CMiC takes care of construction payroll for you, it also integrates with popular platforms like Workday that you may already be using.
• Accounting apps bring convenience and efficiency to managing your financials.
• 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).

Cost Codes and Cost Types for Organizing Expenses

Xero is best for smaller companies looking for a comprehensive set of financial management features, alongside solid payroll capabilities. The additional project tracking features also make it a good fit for smaller companies trying to consolidate their tech stack and reduce the number of applications they use day-to-day. Construction accounting software suites are specifically tailored to help construction businesses navigate the most common challenges in the industry.

What features should I look for in construction accounting software?

“We love the ability to work WITH our subs on our project management software instead of it being an in-house only product. There are a LOT of working points and a lot of tiny steps that are required to make certain workflows function properly. Once you get the hang of it, it’s a breeze, but getting there can be tough.” – Emily W. When it comes to the construction industry, accounting is https://www.merchantcircle.com/blogs/raheemhanan-deltona-fl/2024/12/How-Construction-Bookkeeping-Services-Can-Streamline-Your-Projects/2874359 one of the most important aspects of a successful business. With each new contract comes a new set of expenses and incomes—new inventory to track and manage, new invoices to send and receive, and new accounts to keep organized.

What Is a Work in Progress Schedule? Construction Accounting

Also, it didn’t do well in pricing because it’s one of the most expensive software on the list. Explore our How Construction Bookkeeping Services Can Streamline Your Projects top picks for general contractor software covering bid management, document control, and project management. When searching, try to strike a balance between user-friendliness and functionality.

Construction Project Delivery Methods Compared

• There’s also COINS for extensive construction bookkeeping features, Buildertrend for great customer management, and Sage 100 Contractor for smaller contracting companies just getting underway.
• We also looked at the range of costs between the various pricing tiers that a provider offered and the value that those plans offered to users.
• This method of accounting tracks income and expenses along with the job they relate to.
• Here are top tips from Buildertrend’s webinar to finish jobs on time and on budget.
• You wouldn’t have a carpenter rewire your house and you wouldn’t have a painter fix your plumbing.
• The software also delivers flexible reporting and analytics, with pre-built options for progress billing and contract summaries.
• Foundation Software is one of the leading accounting systems in the US construction market.

PENTA also handles construction accounting, including automated closing features and foreign exchange capabilities. Depending on your needs, QuickBooks can work as a construction accounting software. It offers an option to create a schedule of values for progress billing, but it can be clunky compared to purpose-built construction accounting software. Getting a quick response through their customer support line can also be challenging, which should be considered for busy construction businesses.

• With custom quotes provided by Access Coins depending on your business needs, the team can help you realize a package that is best fit for your needs.
• When choosing construction accounting software, start by making a list of your must-have features.
• Sage 100 Contractor includes construction-specific features like project management tools, a report writer wizard, and equipment management.
• By serving as a larger business management system, construction ERP provides complete oversight and visibility into all areas of the business.
• This practical guide for construction companies explains how you can accurately allocate overhead costs to maximize profit, including finding overhead rates.

Foundation Software – Best Overall

Acumatica Construction Edition is a scalable option for both small contractors and larger construction companies. We picked it for features like multi-company and multicurrency support and intercompany accounting, making it versatile for a wide range of business sizes and types. We also like that Acumatica integrates easily with other systems like Procore, ProEst, and eSignature apps like DocuSign. ComputerEase covers functions like AP, AR, bid day management, equipment costing, and estimating.

Criteria for Selecting the Best Construction Accounting Software

With this information in your accounting system, tracking things like retainage and change orders, issuing purchase orders or subcontracts, and keeping client billings on schedule becomes much easier. You’ll also use the contract’s total cost and scope of work to develop the project’s schedule of values, which breaks down individual billable tasks and their value. As a result, the IRS typically requires that contractors use percentage of completion for long-term projects. Although home construction projects and small business contractors are often exempt if the size of the project and the size of the contractor are within their defined limits. They define small contracts as any project to be completed within two years and define a small contractor as having $25 million in gross receipts (over a three-year period).