Job costing, in particular, is one of the main factors that sets construction companies apart from other types of businesses. Their books revolve around service-based projects as opposed to the sale of particular items. For more information about our star ratings process, see how we rate small-business accounting software in general.
Best Practices in Developing a Chart of Accounts for a Construction Company
Aside from integrating with accounting software and ERP systems, other must-haves include eSignature services like DocuSign, cloud-based file sharing services like Dropbox, and payment processors like Square. Pre-built integrations include various 3rd party applications like Autodesk, Bluebeam, Comdata, DocuSign, Kofax, and PlanGrid. CMiC also offers API bundles for CRM, estimates and budgets, payroll processing, and other tasks. Yes, you can use a free program like Wave if you only need basic accounting support for tracking total expenses, automating invoices, and receiving payments. Head out to our review of Wave to see if its free features are adequate for your construction business.
ComputerEase – Best for Midsize Companies
- Users can access its accounting features remotely, including AR and AP, for simple invoicing, progress billing, and payable management.
- For more information about our star ratings process, see how we rate small-business accounting software in general.
- If you think general accounting software is enough for you, choose QuickBooks Online.
- Invest in QuickBooks training to take advantage of the on-premise or cloud-based applications.
- Support for Zapier integrations is also a definite plus, as that makes it easy to hook in any apps that aren’t natively supported.
- That includes things like job costing, change order tracking, and progress billing.
- Her work has been featured on US News and World Report, Business.com and Fit Small Business.
Each plan offers the basics needed to run your construction business, including scheduling, daily logs and a to-do list. Buildertrend makes communicating with clients easy with messaging in the app and a client portal that allows clients to see where they are at in the process and be able to sign contract and scope changes. You can avoid a fair bit of cash flow problems by negotiating more favorable retainage rates/terms with project owners.
About Buildertrend
Construction accounting must handle complex payroll scenarios, including prevailing wages and union requirements. It also deals with long-term contracts, progress billings, and retainage, which are uncommon in other industries. Foundation Construction Accounting Software has all the back-office tools contractors construction bookkeeping need to run the business side of construction. At Business.org, our research is meant to offer general product and service recommendations.
Cost Codes and Cost Types for Organizing Expenses
Fortunately, there are tools available for construction firms that can simplify life and radically improve business processes. Utilizing digital tools can eliminate virtually all of the headache caused by manual bookkeeping. The right software will help your team collect project data as they work, so you don’t need to spend time finding information and re-entering it into your accounting system. This method should be used if revenues and costs of a project can be accurately estimated and all parties involved are expected to be able to complete all of their respective duties. From a technical level, WIP is a noncurrent asset account where long-term, fixed assets are tracked. A WIP report helps you understand whether you have over or under-billed for an ongoing job.
While COINS clearly has a lot going for it, it’s not as user-friendly as some other software options (most notably Jonas Premier). While customers like its clear dashboard and straightforward financial statements, COINS struggled to get users up to speed during its last update. For six weeks, you’ll get thorough one-on-one software instruction, which continues with unlimited customer support and group training. Few software companies offer that level of product training or customer care.
