Construction Industry Accounting Software

construction accounting systemChoosing the right accounting software for your construction business can make a huge difference in your bottom line. Investing in industry-specific modules or an integrated system designed for the needs of your business can save money over the long term while also reducing the headaches that often accompany insufficient functionality. If you’re ready to purchase new accounting software, be sure to consider all your options before you buy.

Add-On Modules or an Integrated System?

Many software features can be purchased as individual add-on modules. The appeal of this approach is that you can pick and choose which features you need and save some money on your initial purchase. The drawback, however, is that you may end up paying more for upgrades and maintenance down the road, especially if you need to work with a third-party provider in addition to your software partner.

With an integrated system, you get everything all in one package and you work with just one provider for all of your maintenance and upgrade needs. Your decision will depend on the specifics needs of your business as well as your software budget. Ultimately, the goal is to streamline your accounting processes in order to make your business more efficient and increase productivity.

What Features Should You Look For?

In addition to payroll, reporting, accounts receivable, and other basic features, construction industry software will deliver functionality that is specific to your industry. These features may be part of an integrated system or they may be available as add-on modules that can be purchased along with a basic software package. Some of these features include:


Equipment Management

Your equipment should be generating revenue for your business rather than costing you money. Equipment management software can help you identify whether profits exceed costs for each individual piece of equipment. It can also help you keep track of routine maintenance and evaluate utilization over time.

Job Costing and Profitability

Track spending trends and job costs, identify inefficiencies, and determine which jobs are meeting projected profitability thresholds and which ones aren’t. Use this data to reduce overall costs and increase profits per job.

Work In Progress

Streamline project management capabilities with a work in progress feature that manages the budget for each project and keeps tabs on expenditures. 

Percentage of Completion

Account for revenue and expenses for long-term contracts and keep track of gains or losses at each stage of a lengthy project. 

Retainage

Manage retainage records, project completion data, and payment dates for each stage of the plan.

Industry Specific Reporting

Track gains and losses and generate detailed reports on materials and labor costs. Compare estimates and actuals easily and in detail in order to identify losses and increase the efficiency of each project. Manage change orders, approvals, non-approvals, and adjusted costs/revenue over time.

An industry-specific accounting software package can reduce the inefficiencies associated with cumbersome work-arounds or manual recordkeeping. CompareAccountingSoftware.com offers a software comparison tool which will help you compare features and prices for the various options available in order to bring the greatest benefit to your business.