Accounting & Bookkeeping Services for Construction Companies

Chief among our considerations was usability, as well as the availability of tools for project management and inventory tracking of raw materials. We looked for accounting software that wasn’t just effective, but also helped manage profitability on a job-by-job basis. We also looked at pricing and plans to find the platforms with the best value on the market. Finally, we gathered customer feedback to find out how real-life contractors used each platform and how their experiences lined up with our testing.

TL;DR Top 11 Construction & Contractor Bookkeeping Services, Companies, Consulting Firms, Consultants, & Agencies

Construction accounting places a lot of focus on accurate job estimating and costing. It uses a cash basis accounting and construction contractors should consult with a tax advisor to get the best tax strategy for their business. Not only do you and your employees need to feel comfortable using the system but so do clients and subcontractors if you integrate them into the bidding and project management process. Look for a solution that has a simple dashboard that allows you to access everything from the general ledger to reports with a few clicks of the mouse.

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You can use construction invoice templates to bill your clients and keep a paper record of all construction projects and revenue generated. So they need to be able to track accurate costs, bid on jobs, manage prevailing wage requirements, and handle a slew of other accounting responsibilities. They provide detailed financial records and insights to improve bidding processes and financial health. Companies that had client tracking, software integrations and mobile apps performed better https://blackstarnews.com/detailed-guide-for-the-importance-of-construction-bookkeeping-for-streamlining-business-operations/ than those that didn’t. This is why it has flexible billion options, such as American Institute of Architects, time and materials and freeform billing. The software makes invoice routing easy and conveniently reconciles things with the GL when paid.

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Contractor-specific accounting software also often includes features to assist in the financial side of project management, such as job costing and estimate generation. Construction bookkeeping services are vital for managing the financial intricacies of the industry, such as tracking job costs, managing payroll, and handling subcontractor payments. These services ensure that financial records are accurate and up-to-date, which is essential for making informed business decisions and maintaining compliance with tax regulations.

These financial relationships support our content but do not dictate our recommendations. Our editorial team independently evaluates products based on thousands of hours of research. Gain real-time insights into all project expenses within your accounting system, enabling better financial control. Due to the industry’s distinct nature, certain financial statements exist just for construction accounting.

• Due to the nature of construction, production is inherently decentralized, meaning it happens on various project sites instead of a single location.
• In the construction industry, meticulous financial management is important for making sure projects are completed on time and within budget.
• Once the accounting software is selected for tax reporting, invoicing, and payroll, executives often start looking to implement job costing features.
• External agencies have contractor bookkeeping expertise to manage these processes effectively without any complexities.
• We also weighted the number of responses, giving higher scores to providers that had at least 300 positive reviews to help reduce bias.

It allows adjustments to be made easily and can provide month-end and year-end reporting quickly. The revenue management component manages owner contracts, invoicing, cash receipts and projections. The cost management component factors in labor and equipment costs along with needed materials and subcontractor bids.

Foundation allows contractors to custom build their software through different modules. The Payroll Software Module automates timecard processing and payroll calculations, while the Job Costing Module creates job budgets, tracks job costs, and manages construction change orders. Construction professionals working with outside accountants can also benefit from the CPA Audit and Review Software, which automatically shares data with CPAs to ensure ongoing financial compliance. For contractors who are seeking an on-the-go solution, Foundation’s mobile app operates via smartphone, tablet, or laptop and can sync remotely to the main software. Pricing varies based on the modules selected and the size of the business, so it requires consultation with a customer service representative. Accounting software can help streamline this process for contractors by tracking cash flow and transactions, billing and payments, and more.

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You’ll have the time needed to reduce the negative impact, and they will still achieve the expected profit margins on their projects. There are simple workflows for employees to submit the time cards and manager approvals to approve them. This should ideally be the breakdown of items that you use to quote customers, and once the project starts, this is the list of items that you use to break down costs. Raise purchase orders, batch bills with orders, and track order payment summaries to eliminate the risk of over-expenditure.

Sage Intacct Pricing information

To compare various construction accounting software platforms, we collected a proprietary set of data points to compare and contrast. This included looking at cost, the types and quality of features the software offered, third-party ratings and reviews and a combination of metrics put together by our staff of experts. We looked at a total of 22 different metrics across five separate categories to reach our conclusion. Here are some of the categories we used to rank the providers that made the top of the construction bookkeeping list.