Often, construction is quite a challenging task. But it even gets trickier when you have run the back office. After all, it would be best if you kept tabs on the company’s financial pulse as you bid to maintain a healthy cash flow and turn a profit.
It’s at this juncture where construction accounting comes in handy. In this case, you should arm yourself with accounting software, which will enable you to keep track of income and expenses.
What is accounting software, you might ask? Well, this is a computer program that lends a helping hand to accountants and bookkeepers in their quest to record and report a company’s financial transactions.
It’s worth mentioning that the functionality of this software differs from one product to the other. If yours is a large construction company, you may deem it fit to use customized accounting software to incorporate a vast amount of data.
Since its inception, this software has proved to be an invaluable resource for modern construction companies. But the viability of this software often boils down to your company’s needs.
With some construction works, all you might need is basic bookkeeping software. However, you’ll be required to upgrade if you’re staring at a large number of contractors because you need to stay organized and be as efficient as possible.
It can’t go without saying that accounting software’s most common features include bookkeeping, invoice and billing, reporting, and payroll.
Now, your construction will take a leap, especially if you embrace the use of accounting software. In any event, this platform comes with a host of benefits, namely:
- Easy access to accounting data
- Easier collaboration
- Enhances accounting security
- It paves the way for automation
- Improved accuracy
- Reduces costs
This accounting software is a good fit for your QuickBooks because it integrates great cost accounting with management features. BuilderTREND also enables you to liaise with your project managers, and it furnishes you with real-time cost reports.
Other than accounting, BuilderTREND will give you peace of mind because it can help you track your employees’ location while on the clock. More often than not, this software goes for $99 per month (BuilderTREND Core) and £299 per month (BuilderTREND Pro))
BuilderTREND brings on board a litany of benefits namely:
- Unlike the traditional accounting system, BuilderTREND enables you to get hold of your data if the need arises
- It’s possible to use accounting software from your laptop, mobile phone, or tablet
- It enhances customer relationship management
- With this software, you can easily organize and manage projects
- At the click of a button, you can generate, download, and view financial statement and reports
- The collaboration of your financial records is as easy as a snap of a finger
Founded in 1990, this software is designed to provide better-integrated accounting solutions for construction companies. It’s a viable option for construction companies, general contractors, home builders, and land developers.
Since it’s cloud-based, this accounting software can be used by multiple divisions in a construction company. It’s most notable features include complete audit trails, granular reporting, automated workflow, and job costing. What’s more, this software will set you back £199 per month.
This software has numerous advantages:
- You can get access to real-time accounting data
- It enables you to keep your accounting data safe and secure
- Your data is protected by high-end encryption algorithm
- Besides, your accounting data is synced at all times
- Having this software means that you can automate most steps of the accounting cycle
Every time you make an accounting entry, it’s automatically mapped to the proper accounts
For the past 40 years, Xero has made a name for itself due to its reliable bookkeeping software. It’s worth mentioning that this software is a solid choice for small construction companies. With Xero, your company will benefit from an affordable solution that comes with basic ERP features.
This software allows you to keep a note of all costs incurred, in addition to managing project activities. On matters pricing, you can go for one of three packages, namely Starter (£14 p.m.), Standard (£27 p.m.), and Premium (£34 p.m.)
Its benefits include:
- The software’s ERP features will enable you to develop great reports
- Through the Xero App, you can easily access project information
- This technological milestone will go a long way in ensuring that your accounting data is organized in a proper and accurate manner
- As far as accuracy goes, you do not have to spend 5 hours trying to establish why the balance sheet did not balance
- You can get it at a fraction of the cost even though it lacks some of the most advanced features
- It will help your construction business to cut down on costs
QuickBooks Online will do a fine job for your construction company even without advanced integration. The key to this software is that it allows you to track income and expenses. You can go further and compare estimates to the actual job costs.
It comes in four versions, namely:
- QuickBooks Online Simple Start (£25 p.m.).
- QuickBooks Online Essentials (£40p.m.).
- QuickBooks Online Plus (£70 p.m.).
- QuickBooks Online Advanced (£150 p.m.).
Your company stands to benefit from this software in numerous ways:
- It reduces costs by helping your business to recover on average, 300 hours a year
- It allows you to create and email estimates
- It paves the way for a secure and accurate payroll
- You can file employees’ taxes in one place
- You can maximize your tax savings
- It allows you to have a real-time view of your company’s cash flow
By now, you should know that accounting software will allow you to focus on growing your construction business.
Be that as it may, there’s no alternative for having accurate accounting records. In any case, these are vital ingredients of a construction business that you can’t afford to overlook.
And since you’ll find it complicated to manage a construction company, having good accounting software can be of great value. But this software should incorporate the most basic tasks into your accounting system.
Nevertheless, your accounting software’s choice should be guided by various factors, including ease of use, price, budgeting and payroll capabilities, and multi-user functions.
Besides, accounting software should have construction industry-specific functions. Such software should easily integrate with other apps and software.
While good accounting software can be costly, it’s generally worth it but this is incumbent on whether you’ll make the most out of its features.
Once you have accounting software, let’s talk.
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