There are several accounting software packages for construction businesses in different market segments. From general contractors to roofing companies and plumbing firms, the needs for construction companies can differ a lot, but it all boils down to a common need: they need reliable accounting software in order to streamline their bookkeeping and easily manage finances.
Construction accounting software is the type of software specifically designed for construction companies to track money coming into and out of the business. Construction accounting software expands general accounting features by augmenting the software with modules to track job-specific costs and revenues, manage payroll, and handle billing and procurement.
One of the important challenges that a construction business owner faces is accounting. A lot of them do not have formal accounting knowledge. It means they will go for an accounting solution that doesn’t require advanced expertise in accounting terms. The best accounting software provides them with facilities to keep records by uploading SMS, invoices, photos, scanning bills, etc.
CMiC
CMiC is an excellent all-around software for your construction accounting and financial management needs. CMiC’s construction-specific accounting systems include core functionality around budgeting, corporate and project forecasting, general ledger, accounts payable, and accounts receivable. Further, CMiC includes robust tools for project management, human capital management, and asset management. CMiC combines all of the business’s data into a single database that allows users to generate a variety of sophisticated reports that help shed light on project costs and minimize potential risks.
CMiC is offered as both a cloud-based and on-premise solution. With either option, CMiC is able to provide in-depth training to help facilitate the transition to the new system. CMiC also has a strong customer support operation and an extensive library of on-demand reference materials for users to answer questions or troubleshoot themselves.
CMiC also has the benefit of being a scalable solution, just as useful for small construction businesses as it is for larger organizations—and with hundreds of customers of different sizes in the market. While you need to contact CMiC for pricing information, CMiC is a highly customizable solution and its different options for features and deployment help ensure that you can scale it to your business’s needs.
CMiC focuses on and deep knowledge of the construction industry, a strong collection of features, flexibility, and appropriateness for companies of all sizes.
FOUNDATION
Starting in 1985, FOUNDATION is one of the best construction accounting software vendors available. FOUNDATION offers robust features with a wide range of modules for businesses of all sizes. Like many other construction accounting software options, FOUNDATION’s base modules include job costing, payroll, general ledger, accounts payable, accounts receivable, and purchase order/subcontractor management.
FOUNDATION goes further with the comprehensiveness of additional modules for project management, scheduling, inventory and equipment tracking, document imaging, and many other aspects of construction financial management. Another benefit of FOUNDATION is its integration with DataGenie, which strengthens FOUNDATION’s functionality around reporting. FOUNDATION offers a number of predefined reports, but DataGenie offers the ability to easily customize and design your own reports.
FOUNDATION is also well-regarded for its customer service, with industry expertise, quick response times, and helpfulness in resolving problems. With so many different features and modules available, this customer support can help you and your team members make sure that you are maximizing the software.
FOUNDATION’s customizability means that its pricing will vary according to your specific needs. You should contact a FOUNDATION sales representative to help determine which modules are right for you and get a quote for your customized package.
Tipalti
Tipalti creates an efficient financial management workflow by optimizing payments and other processes. It streamlines the way you make payments to partners, customers, vendors, and more. Furthermore, taxes and other regulatory requirements are automatically processed. It prevents any human error, which means you can focus on the most important aspects of your business.
Cloud-based accounting software is one of the most popular platforms among CEOs, COOs, and other managers. It currently handles more than 250,000 payees, with over $1 billion annual transfers. The powerful application aims to be the one-stop-shop solution for your accounts payable and supplier payments. Its seamless payment processing eliminates many repetitive steps.
Why choose Tipalti for your construction business?
- Automating most payment processes: The system automatically processes more than half of all global, manual, and mass payout operational processes.
- Reduced errors in all supplier-related processes: The Supplier Management portal allows suppliers to input and manage taxation information. It is then validated by the application’s Remittance Validation Engine.
- Automatic taxation and compliance: The platform is KPMG certified and collects W-9 and W-8 US tax forms. It also generates 1099 forms at the end of the year.
Rossum
Rossum may be a document management system but it landed a spot on this list because it is built to be used for not only file organization but also to roll out accounts payable processes and logistics workflows, making it great for construction companies. It comes equipped with intelligent document curation, cognitive data capture, AI-powered engines, as well as extracted data matching. With this platform, you can quickly compile important information from each transaction and ensure they are stored in an easily accessible yet secure database.
Another nifty thing about Rossum is that it comes with a slew of analytics and reporting tools. It can generate audit trails and provide you with an in-depth report on software usage. This enables you to keep all team members accountable. The software is also built to comply with data security standards so you can rest assured that any data you store within the solution is safe from prying eyes.
Why choose Rossum for your construction business?
- Centralized repository of documents: Rossum serves as a unified repository for all of your documents. It has an intelligent inbox that can compile all of your files in one field. This way, you can ensure that all your important accounting data are in one place.
- AI-powered cognitive data capture: The system uses AI-powered technology to extract information from a variety of documents. This makes it easy to record or transfer data with minimal room for human error.
- Seamless integration with your current system: It is quick and easy to integrate the system into your existing ERP or RPA software through its API capabilities. It also has out-of-the-box integrations with different document management systems.
Quickbooks
While Quickbooks isn’t specifically for construction accounting, they do offer enough capabilities with their general accounting modules that small contractors can use their software. Quickbooks is much less expensive than the other software on this list and might be a good fit for companies with a smaller number of employees and projects who usually have predictable job costs. Quickbooks offers two tiers of pricing:
- Plus – $35 for the first three months and then $70 per month after.
- Advanced – $75 for the first three months and then $150 per month after.
Advanced offers more capabilities like batching invoices and bills, automating workflows, and on-demand training for the software. Payroll is an additional feature that can be added on for $22.50 flat with $4 per employee per month for Core, $37.50 flat with $8 per employee per month for Premium, and $62.50 flat with $10 per employee per month for Elite. With Plus, a customer can have five users included in the monthly fee, although up to 25 additional users can be bought as the company scales up. For small companies, that should be more than enough to cover the employees who need to access the software.
Most editions of Quickbooks are cloud-based, which means that they can be run on any device with an internet connection, updates are immediately available for installation, and upgrades from one edition of Quickbooks to another are simple. Once you change your subscription, you can download the next edition. Quickbooks also integrates with many other software programs, so it is easy to use Quickbooks when you want to bring in data from other programs.
Another benefit to Quickbooks is the easy-to-learn, easy-to-use interface. Customizing reports, entering invoices, and connecting bank accounts for simplified transactions are all streamlined in Quickbooks. For people without a need for complex financial reporting, Quickbooks makes contract accounting simple.
Sage 100 Contractor
Sage 100 Contractor established itself as a popular choice among contractors under its former name of Sage Master Builder. Contractors using the less feature-rich accounting package Sage 50 (formerly Peachtree Accounting) migrated to Sage 100 Contractor to take advantage of the enhanced estimate and job costing ability. Additionally, contractors find Sage 100 Contractor reasonably priced.
Knowify
Knowify is an ideal cloud accounting solution for small to midsize construction businesses, especially those without the staff or infrastructure to run software on-premises. Since it’s a cloud-based option, it allows users to update and manage everything from timecards to invoices in real-time as long as they have access to Wi-Fi or a cellular network. Knowify also offers a reasonable monthly rate, making it an ideal option for small contractors.
PENTA Construction Management Software
For construction companies performing large projects like industrial or utility construction, the most feature-rich option is PENTA Construction Management and ERP software. With a robust Oracle database backend, PENTA offers a unified alternative to oversee accounting and payroll and equipment and inspection management. However, this software’s price and management overhead mean investing in PENTA should not be entered into lightly by any company despite its size.
Jonas Premier
Jonas Premier is an ideal solution for large companies managing multiple large construction projects simultaneously. Jonas Premier offers many features, all available from various devices—from laptops using a web browser (Chrome, Firefox, and Edge) to mobile phones (using the Jonas mobile apps for iPhone and Android). However, these features come with a hefty price tag, relegating this option too large enterprises exclusively.
Conclusion
Construction is undoubtedly a tough business to be in. It requires a lot of capital and almost more importantly, it requires an effective construction accounting system. Construction companies often face challenges concerning their cash flow and it is important to track where the losses and gains are coming from. If you do not have a system that can show you this, then your business will certainly suffer. This is what top construction companies focus on – finding the best way to keep their books balanced and keep tabs on expenditures, income, and personnel.