Updated: Mar 31, 2022
When you are running a construction business, there are many different aspects to keep track of. You have to oversee all the building projects, manage your payroll, and collect payments from customers. This is why so many contractors use accounting software for businesses that will help them maximize their profits while keeping track of everything they need to do on a day-to-day basis.
Construction accounting software is the all-in-one solution for construction firms who want to access and perform their accounting from one place. Here are six reasons why construction firms should consider using this type of software:
1. All major aspects of accounting in an easy, intuitive interface
One of the biggest advantages of construction accounting software is that now all your financial needs can be taken care of in one place. Accounting functions, inventory management, payroll, purchase orders and more are all available with just one program. You get access to Job-Costs, Project Management and Accounts Receivables/Payables as well!
2. Software that was built specifically for you
The construction industry is booming, and with it comes a need for specialized accounting software. Construction accounting software has unique functionalities geared specifically towards the needs of commercial contractors, like budgets for specialty tradesmen and specific invoices. This kind of technology can help you keep your books up to date on the go, as well as streamline processes that are vital to your construction company.
The efficiency of construction accounting software is due to the fact that it was designed specifically for commercial contractors. Excel and QuickBooks, on the other hand, were made with any business in mind. With this type of software, you can have a more streamlined process for managing your company's finances.
3. Eliminates time spent on tracking down information because it is all at your fingertips
Being able to tie together every aspect of a job in one place is so helpful. By using construction accounting software, you can create jobs for your business and everything involved with that job will be automatically inputted into the system. When a job is created in the software, it ties to other modules within the system. The materials and equipment used on the job come from inventory within the system. Those materials then get deducted from inventory when useable items run out, which makes tracking time and money much easier.
4. Automatically create specialized reports
The construction industry is a massively diverse space with many different facets. That's why contractors need to have incredible reporting in order to stay on top of their finances. Items like WIP reports or Certified Payroll reports, for example, are not things that can be done easily by themselves. Luckily, though, the good news is that Construction Accounting Software comes pre-packaged with these functionalities and more!
5. You'll know exactly how much profit and loss your company has made every month
The most important thing every business owner should do is to measure their profitability. Running a successful company depends on earning enough profit to cover expenses and stay in business for the long term. Your revenue, costs, and profits should be an essential focus of your monthly management tasks along with other key performance indicators (KPIs). The right construction accounting software will keep track of all of this for you. All you’ll have to do is sit back and watch the money roll in.
6. Save time and money by streamlining processes
Though it may be pricey to start, you'll end up saving a fortune since the software is able to streamline so many processes. You could free up your employees from doing mundane tasks like calculating payroll so they can focus on more important things. Plus, with all of those processes streamlined and simplified into one easy-to-use program, your office becomes much more efficient in no time at all.
If you are a construction firm, then it is the right time to update your accounting practices with modern technology. Construction accounting software can help improve your company's profitability by saving hours of work per task.
The emergence of construction accounting software over the past two decades has allowed construction firms to become more efficient and profitable than ever. Tasks that before took hours can now be done through a series of clicks and keyboard strokes. Firms that have embraced construction accounting software have been able to make their businesses exponentially more profitable than ever before!