As your firm continues to grow, managing it gets more and more complicated—especially when it comes to the financials.
As a busy construction manager, you might let accounting fall by the wayside—and that’s costing your firm a lot of money. Your bank might hit you with overdraft fees if you didn’t know your account was low before a big materials order, or maybe you don’t have the tools to spot opportunities for savings.
You should look for accounting software with some key features in order to save significant amounts of money on your next project. We found three software options that your construction company’s accountant is going to love, and that will save you money in the process.
To choose the software, we started with our construction management FrontRunners report, where we rank the top software options based on usability and user recommendations. We chose the three highest user-recommended options on the FrontRunners graphic that are also listed in the construction accounting software directory. They are listed below in alphabetical order.
Here’s what we’ll cover:
Roots is a cloud-based software that is suited for sending bids and sharing estimates (Source)
Roots is a cloud-based construction management software with strong accounting features. The company describes its accounting software as a “[f]ully integrated construction accounting suite that provides construction financials, secure work in progress reporting, and consolidates with multiple companies.”
Roots is particularly suited for sending bids and sharing estimates, which is a big part of a construction firm accountant’s job. It also has a budgeting feature so your accountant can forecast expenses and record financial transactions.
If your accountant uses other accounting systems, that’s OK—Roots can integrate with third-party systems to record your financial transactions.
There are also pre-built templates for financial documents such as 1099 forms, AIA billing, and insurance.
Price: Roots offers three software options: estimating, project management, and accounting. The accounting version costs between $1,500 to $9,000 per year for unlimited users.
|✔ File storage||✔ Custom forms|
|✔ Full accounting suite||✔ Consolidated financials over multiple companies/divisions|
|✔ Capability for AIA billings||✔ Digital time cards|
|✔ Accounts receivable/payable||✔ ADP payroll integration|
|✔ Labor reporting||✔ 1099 tracking|
|✔ Insurance and subcontractor compliance|
Sage 100 Contractor is construction accounting software geared toward small and midsize businesses (Source)
Sage 100 Contractor—formerly known as Sage Master Builder—was created for small and midsize construction contractors and subcontractors. It’s software you’ll want to get if you need something more powerful than basic accounting software but aren’t looking for a more expensive enterprise solution with all the bells and whistles.
Sage 100 covers you through the entire construction accounting cycle, from estimating the cost of the project, to submitting a bid, to tracking transactions during the project, to generating financial reports once the project is over.
Sage 100 also has an interactive dashboard to give accountants greater visibility of where everything stands with a project’s financials. And it enables them to use data to conduct deeper analysis of the financials so you can spot opportunities for savings.
There are also customizable alerts for situations such as expiring insurance or a depleted bank balance.
Price: Sage states that pricing starts at $114 per month, per user, but invites people to request a quote for more details.
|✔ Customizable user dashboard||✔ Reports with drill-down capabilities|
|✔ Exportable budgets, proposals, and purchase orders||✔ Big-picture views of the financials of a project|
|✔ Instant access to costs and change order data to managers||✔ Manages payroll, AIA billings, and lien waivers|
Vista allows you to track pay, equipment used, and other vital employee information (Source)
Viewpoint’s Vista is construction accounting software that integrates finance, project management, and operations. This is ideal for construction firms that need accounting software that has some management capabilities included so that they don’t have to purchase separate software—a potentially expensive prospect that also raises possible integration issues.
Viewpoint describes the software as an enterprise resource planning (ERP) solution that is “scalable, configurable, and fully integrated,” and adds that it provides “timely reporting of critical financial data.”
It has accounts payable/receivable, general ledger, payroll, and cash management features that allow your accountant to stay on top of all the financials in your company. It also offers collaborative document management so you can go fully paperless.
The software aims to save time by providing standardized templates so accountants can quickly generate income statements and balance sheets.
There’s also a web extension that offers a human resources element to the software to reduce the workload on HR staff and offer employees a self-service portal.
Price: Viewpoint doesn’t publicize Vista’s price on their website, instead inviting users to try a custom demo first.
|✔ RFI tracking||✔ Standardized workflows|
|✔ Management features that allow you to integrate your accounting with the rest of the project team||✔ Software updates internally to save managers time|
|✔ Accessible through the cloud||✔ Standardized templates|
|✔ HR web extension|
Make your construction company’s accountant happy with these simple steps
It’s important to provide your construction company’s accountant with the right tools for the job—after all, if there’s one thing you want to get right, it’s the financials. But first, you’ve got to settle on the right construction accounting software for your company. Try these simple steps to get started:
- Have your accountant set up demos with all three of these products to see if they might be a fit.
- During the trial period, ask your accountant to list pros and cons for each, as well as the pricing information.
- Meet to discuss the results, which should be enough to give you an idea of which software works and what doesn’t.
- If the accountant was unhappy with all of them—or would like to see more options—choose a couple more options from our construction accounting directory to try out as well and set aside two weeks for trials. Keep doing this until you find a product that works for your firm.
- If you need any advice, give us a call at Software Advice at (855) 444-0395.