When you own a construction business it is important for you to be able to track and control all of your finances. This is where good construction accounting software can come in very handy. There are a lot of construction accounting software products on the market today. It can be difficult to choose one, especially if you are not familiar with what each one has to offer. This article discusses what each software product has to offer and how they will help you with your small construction business.
Accounting software helps businesses track income and expenses. The construction industry uses it for those tasks, but also for tasks like tracking project-specific finances, reporting the percent of a job that’s complete, budgeting, monitoring equipment usage, and collaborating with subcontractors, and managing payroll.
By using construction accounting software, construction companies and contractors can be as efficient as possible, stay organized, and increase profitability.
A proper accounting software is essential for the success of all construction companies. Businesses of all sizes are constantly dealing with a large number of contractors, subcontractors and temporary construction teams which further complicates payroll, procurement and various other accounting functions. To ensure everything from purchase orders, to inventory and equipment is being tracked, utilized and replenished accordingly, a reliable software is needed. This list of these accounting software is a combination of traditional and cloud software solutions, providing a comprehensive list that any construction company can choose from.
Jonas Premier
Jonas Premier is part of the Jonas Construction Software company, founded in Canada in 1990 as a way to build a better-integrated construction software solution and is now a division of Constellation Software, Inc. It’s used throughout North America by construction companies, land developers, home builders, and general contractors.
It’s cloud-based and the accounting software can be used by multiple companies and divisions to allocate revenue and expenses between jobs. It also includes a customizable management dashboard that can be used differently by various types of contractors such as HVAC, plumbing, electrical, and more.
Jonas Premier features include:
- Granular reporting
- Complete audit trails
- Multiple accounting periods open
- Multi division and multi-company accounting
- Accurate real-time reporting and tracking with general ledger accounts receivable and payable
- Automated workflow
- Job and dispatch scheduling
- Job costing
- Document, inventory, and equipment management
It also offers payroll and union reporting features including federal remittances and year-end reporting and can be integrated with apps including Plangrid, Contigo, Microsoft Project, and more.
No bookkeeping experience is required to use Jonas Premier and there is an unlimited free training, videos, webinars, and eBooks available to help you get set up.
Pricing for Jonas Premier is as follows:
- Implementation fee: Starts at $20,000 and includes one-on-one training sessions for six weeks, unlimited group training and unlimited support, designated account manager, and unlimited document storage
- Monthly: $199/concurrent user/month with month-to-month commitment
- Annually: $189/concurrent user/month with an annual commitment
- No hidden fees and everything is included
We chose Jonas Premier as our best overall construction accounting program because of its longevity in business, it specifically caters to the construction industry, and the accounting software is full of robust, easy-to-use features that are available on-the-go.
FreshBooks
FreshBooks is a leading finance and accounting software that has gained traction and application across multiple industries all over the world. For the construction industry, it provides a strong suite of core functionalities that include accounting, time tracking, invoicing, and reporting. It provides a robust mobile implementation so you can communicate with clients even when you are out somewhere on current project sites.
The time and expense tracking tools, built-in among FreshBooks features, let you create accurate invoices, billing and collect payments via multiple channels conveniently. FreshBooks accounting and tax handling ensure compliance with state requirements. It automates many processes, including expense organization, time tracking, and customer follow-ups, so that you will have more productive time on your hands.
Additionally, FreshBooks lets you create professional-looking estimates and invoices showcasing your brand. Collection and online payment can be made through methods preferred by your clients, eliminating the chance of you chasing that elusive check from your clients.
Why use FreshBooks for your construction business?
- Match expectations with accurate estimates. Minimize project proposal rejection with realistic estimates that easily resonate with the expectations of your customers, especially long-time clients.
- Stay on the same page with clients any time, anywhere. FreshBooks relies on its strong mobile implementation to give you confidence in communicating with your clients from just about anywhere you are at any moment.
- Collaborate with on-field teams, contractors, and even clients. Never miss costly details by sharing key information online and having all the people involved stay on the same page throughout the life of projects.
- Never lose on any billable time. Every minute of work is precisely tracked and reflected on your records, so you won’t wonder where all those work hours of your personnel have gone.
- Receive timely payments. With FreshBooks’ multiple online payment options, you won’t have to worry again about how your clients will be able to pay you.
CMiC
A computer software company founded in Ontario, Canada in 1974, CMiC provides enterprise software for construction companies, general and specialty contractors, heavy and highway contractors, and project owners. It’s used by family-owned businesses and national-scale enterprises and is specifically built for the construction industry. You do not need any accounting knowledge to use it.
It offers full payroll services including employee life cycle management, talent acquisition, human resource management, payroll, and employee self-services. It works well with other systems and can be used with pre-built integrations, API bundles, integration adapters, and project and financial data can be shared across systems. Revenue and expenses can be allocated to specific projects and individual companies. CMiC can also help with scaling your business and changing management teams.
Features of CMiC include:
- Budgeting
- Corporate and project forecasting
- General ledger
- Accounts receivable and accounts payable
- Monitor cash flow and optimize spending tools
- Automated financial controls
- Corporate risk management
- Asset management
- Enterprise planning
Pricing is available upon request and is dependent on features needed, type of company, construction business volume, and more.
CMiC is our choice for runner-up to the best overall construction accounting software program because of its long track record in the industry, robust feature offering, and because it is tailored specifically to the construction industry.
NetSuite
Cloud-based NetSuite ERP leverages a full suite of comprehensive business capabilities, including advanced accounting processes and tax management, billing and invoicing management, fixed asset, and payment management for your construction organization. NetSuite ERP lets you handle multiple construction projects at once with clear estimates and accurate billing, dispensing of cumbersome timesheets to manage time tracking for any number of employees on the field.
Backed by an impeccable accounting system with tax compliance features, the application also helps you meet licensing requirements, permissions, and passes needed for construction projects. Other NetSuite ERP benefits include providing the processes and tools for site inspections, lessening internal paperwork, and letting you move your construction projects forward.
Why choose NetSuite ERP for your construction business?
- All the systems you need for your construction business and more. Aside from accounting, timesheet management, invoicing, billing, and payments, NetSuite throws in CRM capabilities and other financial tools to ensure the success of your construction and property rental projects.
- Fully scalable to your changing needs. NetSuite ERP is easily able to add new functionality to meet your construction needs. This ensures nothing is left to chance when meeting and managing new opportunities with the new processes they involve.
- Eliminate delay, minimize costs. Nothing hurts a contractor more than delays in deadline delivery. Fundamental features that address key resources management will let you realize concrete savings both in the short- and long-term.
- Gain key insights into profitability. With improved processes, you get access to quality data to help you evaluate the performance of critical variables in your construction business.
- Increased efficiency, less complexity. Innovations in workflow design mean reduced complexity in running your construction operations, resulting in more substantial revenues.
COINS
In business since 1986 with a presence on four continents, COINS (Construction Industry Solutions) provides software to the construction industry including home builders, specialty and general contractors, engineers, and designers. It includes accounting, project management, operations, and supply chain management. It includes a payroll and HR division which is for onboarding employees, building schedules, managing vacation time, and managing payroll information for employees and subcontractors. You can collaborate on projects with your team and allocate revenue and expenses on a per-project basis.
It can be integrated with a client’s in-house app as well as external web services, warehouse management, CRM, e-commerce, and payment systems. It was built to manage the full product life cycle on one platform.
Key features of COINS include:
- Accounts payable and accounts receivable
- Accrue finance charges
- Automated job cost updates with billings and cash receipts
- General ledger
- Reporting and business intelligence
- Sales order processing
- Determine job profitability
- Call management system
- Job management reports and 1099 forms
No accounting experience is needed to use COINS as it’s designed to be easy to use.
Because it offers so many features and covers multiple types of construction industries, it doesn’t offer tiered or upfront pricing. Instead, it offers custom pricing solutions based on your company’s needs so you’ll need to contact the company for a quote.
COINS is our top choice for construction accounting software with extra features because of the substantial amount of features important to the construction industry including human resources, operations management, asset management, and project management. Users can also share communication logs, drawing sets, daily reports, and more.
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.
The 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.
- 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
Acumatica
Founded in 2008 in Bellevue, Washington, Acumatica develops enterprise resource planning software for small and medium businesses including construction companies and contractors. Acumatica is used by construction, manufacturing, distribution, retail, and e-commerce companies and offers an industry-specific version of their software to construction companies.
There are no per-user fees so you can collaborate with teams and share documents. Acumatica supports integrations with programs including Microsoft Office, DocuSign, and Procore.
You can manage labor, budgets, and schedules with the software and allocate revenue and expenses to certain job sites.
Additional features of Acumatica include:
- Job cost accounting
- Project management
- Inventory control
- Service management
- Project reports and budgets
- Forecast and manage costs
- Calculate taxes accurately
- Complete contract accounting
The software is designed to be easy to use with no accounting or bookkeeping background necessary.
Pricing is set according to the features you need rather than the number of users. Features that are factored into the cost include the applications you want to use, type of license you need, business volume, and data storage. To get the most accurate price for your company, you will need to contact Acumatica.
Since Acumatica offers a complete real-time view of your business anytime and anywhere, we chose it as the best construction accounting software program on the go. All of the features are available on a cloud and on your mobile device and are set up with an all-inclusive user licensing model.
Foundation
Foundation was started in 1985 and focuses exclusively on the construction industry. Its accounting and management software is built with Microsoft SQL Server database technology and updated as industry needs change.
The software is typically used for commercial, industrial, and government work. It’s used by small companies with 10 employees and large construction companies with over 1,000 employees. It’s easily integrated with timekeeping, project management, and estimating apps you might already use. It also has a separate section specifically for CPAs including audit review modules.
Some of Foundation’s main features include:
- Job costing
- General ledger
- Purchase Order
- Accounts payable and receivable
- Scheduling
- Project management and inventory tracking
- Unit price billing
Beginners can use the software and don’t need an accounting background. Additionally, payroll is easy with Foundation. All you need to do is submit the time and it does the rest including calculating payroll taxes, prevailing wage rates, union fringe benefits, and more.
Foundation does not offer pricing tiers. Instead, custom prices are offered based on the type and size of your company and what functions you need the software to perform.
Foundation is our choice for construction accounting software that can be customized because it allows you to easily design and customize accounting reports and construction statements, thanks to its integration DataGenie
Conclusion
Construction is an industry that requires thorough financial oversight, and it’s full of challenges. This is especially true if you’re starting a small construction business and don’t have extensive financial experience. Accountants who aren’t experts in financial matters can easily make mistakes in step one of establishing your business. If you’re entering the construction/real estate industry, it’s important to hire the best accounting software available — whether it’s a desktop or mobile application.