Updated: Aug 25, 2021
Construction accounting is a complex field. There are so many things to keep track of and manage in the construction industry that it can be hard to decide what is the best way to do it all. And, because every project and company has unique needs, you have to find an accounting software solution that fits your specific requirements.
In this blog post, we'll take a closer look at the different things you should consider when looking for construction accounting software.
Whatever accounting software you choose, it should cover the basics well. The first need for construction accounting software is to manage your invoices. It should be able to track the date, amount and project for each invoice you send out. And it’s important that this information can easily be exported as a spreadsheet or PDF document so you can turn it into an invoice if needed and it should be easy to email as well.
Next, you need to track your bills. Ideally, this should be able to split out expenses by project and show the date, order number, supplier name or company name and amount for each bill. You should also have a way of getting these bills emailed directly so they're always up-to-date on what needs paying or has been paid.
In commercial construction, job costing is a must for every project. This gives you an accurate record of how much you spent on materials and labor, which is needed for tax purposes as well as to track profitability. The right software should make this complicated process a breeze.
It should allow you to enter labor costs, material prices and the quantities used for each. The software can then compute your total cost by multiplying these three totals together plus any other factors that may apply such as profit margin or overhead expenses. It should also be able to break this down into a per square foot calculation, so you know exactly how much you spent and how much to charge.
Another area to consider is inventory. Inventory can be really complicated in construction. For example, you may have a truckload of bricks that is delivered to your job site. You might not use them all and so the remainder will be recorded as an inventory at cost until they are used up or sold off.
You might have a roll of one thing and a box of another thing. You could also keep it all in different places, some in the warehouse and some on trucks. You need to account for it differently because one job will use up an entire roll of a material before starting another, while with other jobs there might be half a box leftover at the end of each day.
Speaking of trucks, how often are you on the job site and need to look at something on your software? Or you have a change order come up and want the information to go back to the office right away? When your accounting software comes with mobile apps, this process is so much easier.
Mobile apps that are cloud-based make it possible to work on your business anywhere. You can use the app while you're in a client meeting or even on-site at the job. And when it comes time to submit important information and access details about a job, all of those tasks can be done while you're on-site.
With mobile apps, it's no longer a hassle to keep your management informed about the latest developments in your construction business - you can do this from anywhere from your mobile phone or tablet.
What is the best accounting software for construction?
You're busy with your business and don't have the time to stop what you're doing and research tons of different software programs. You need a solution that covers all of the tasks for your business in one place.
The answer to this question can be found in STRUCTURE Blue. This software offers all of the features that you would expect from an industry-leading solution and more - including real-time updates on job progress, notifications about project milestones, invoicing tools, and reporting functions. And if you need more help, we're on call. Our staff of customer support specialists, located in Weymouth, MA, average 15 years of experience. They're just a phone call away!
With STRUCTURE Blue you can focus your energy and attention in the direction that will bring in more profit for your business without worrying about accounting software headaches.
Learn more here or give us a call!