The Best Construction Accounting Software

Making sure every cent is spent where it should and avoiding cost overruns are a must in the construction industry, which still remembers the fallout in the wake of the financial meltdown in 2007-2008. This is where construction accounting software comes in — the right one can get the job done and keep you in the IRS’ good books. But how do you find it? We have reviewed the industry’s best below, so just keep reading. 

The Leading Contractor Accounting Software

QuickBooks Logo

QuickBooks Contractor

Stay on top of your contractor business

QuickBooks Contractor is a desktop-based accounting product designed for the construction industry and offered by California-based Intuit. SMEs have used QuickBooks products since the 1980s, but the developer has incorporated enough features over the years to make these popular among large firms.

  • Core features: Double-entry accounting, Invoicing, Job costing, Payroll, Inventory management, Financial reporting
  • Desktop/Cloud-based: Desktop
  • No. of users: 1 ($300/year/user for more)
  • Mobile app: Yes (limited features)
  • Customer support: Excellent
  • Base price: $549.99/year
  • Free trial: No (refund provided)
Sage 100 Contractor Logo

Sage 100 Contractor

Strengthen your business with Sage 100 Contractor

Sage 100 Contractor is software for the construction industry from the British enterprise software firm Sage Group. Unlike many other accounting software products, Sage 100 Contractor incorporates project management and ERP features, offering contractors more comprehensive control over all construction workflows.

  • Core features: Double-entry accounting, Invoicing, Job costing, Project management, Time tracking, Inventory management, Payroll, Financial reporting
  • Desktop/Cloud-based: Cloud
  • No. of users: Undisclosed
  • Mobile app: Yes (limited features)
  • Customer support: Excellent
  • Base price: Undisclosed
  • Free trial: Yes
Freshbooks Logo

FreshBooks

Accounting software built for owners.

Offered by Canada-based 2ndSite Inc., FreshBooks is an invoicing and accounting app run on the SaaS model. Over 20 million people across 160+ countries trust this solution which wins praise from businesses of all sizes for its usability, affordability, and strong automation and customization features.

  • Core features: Double-entry accounting, Invoicing, Project management, Time tracking, Inventory management, Payroll management, Financial reporting
  • Desktop/Cloud-based: Cloud
  • No. of users: 1 ($10/month/user for more)
  • Mobile app: Yes
  • Customer support: Excellent
  • Base price: $15/month
  • Free trial: Yes
Zoho Books Logo

Zoho Books

Online accounting software, built for your business.

Part of the Zoho Office Suite of SaaS applications, Zoho Books has won the trust of multiple businesses worldwide, and for a good reason. Known for keeping up with ever-changing business trends, it is the ideal solution for any venture requiring scalability and flexibility.

  • Core features: Double-entry accounting, Invoicing, Project management, Time tracking, Inventory management, Financial reporting
  • Desktop/Cloud-based: Cloud
  • No. of users: 1 to 10 users, depending on the plan. Additional users at $2.5/user/month
  • Mobile app: Yes
  • Customer support: Excellent
  • Base price: Free
  • Free trial: Yes
Planyard Logo

Planyard

Construction software that grows with you

Planyard is cost management software designed for project managers who manage their budgets on spreadsheets but are looking for a more efficient product. Launched in 2018, the software has already gained wide popularity for its robust features and excellent customer service.

  • Core features: Job costing, Subcontractor and vendor management, Time tracking
  • Desktop/Cloud-based: Cloud
  • No. of users: No limit
  • Mobile app: Yes
  • Customer support: Excellent
  • Base price: $24/project/month
  • Free trial: Yes
Bill.com Logo

Bill.com

Your financial operations. Made simple.

Based in San Jose, California, Bill.com is a listed firm known for its cloud-based payments management software. Its use of AI to automate accounts payables and receivables and make payment-related workflows much faster has helped it become a trusted partner of several large businesses and accounting firms.

  • Core features: Accounts payable, Accounts receivable
  • Desktop/Cloud-based: Cloud
  • No. of users: 1
  • Mobile app: Yes
  • Customer support: Excellent
  • Base price: $39/user/month
  • Free trial: Yes

Selecting The Best Construction Accounting Software

This section covers the critical features of high-quality construction accounting solutions. In the process, we will shed some light on why we need a separate ranking of software for construction accounting, what extra features such solutions should have, and how they differ from products for general accounting or project management. All of this information should come in handy when the time comes to select accounting software for your specific construction business. 

The Need for Accounting Software for Construction Companies

A specialized accounting system for a construction company is needed because the nature of the construction industry necessitates specific features for the smooth processing of financial data. While, in many cases, top-ranked general accounting software solutions incorporate these features, some companies require more specialized construction accounting solutions.

Let’s look at some factors that differentiate construction businesses from many others.

Project-Based Work

A construction business typically engages in several projects of varying characteristics at any time. The variations could be in size, client specifications, location, amount of labor, materials, and more. Accounting software for a construction company must consider these variations that make company-level accounting and profitability tracking more complex than for a general manufacturing or service business.   

Long-Term Projects

For most businesses, it is relatively easy to track costs and revenues because the input and output happen over a short period. In contrast, a construction business works on projects with different long-term contracts running over months and years. The input costs could fluctuate over the long term, while the revenue could be milestone-based. These factors make cash flow analysis more complex.

Decentralized Control

Another need for construction business accounting software comes from how different business activities are handled at the company level. For small businesses, most activity occurs in a single office/factory. Larger firms, on the other hand, are spread across multiple locations, where much of the dispersed business activity can be treated as fixed silos overseen from one point. However, for construction companies, the activity happens at different locations that keep changing. The resources used, including their cost, quality, and quantity, have to be tracked closely for each location. 

Features of Accounting Software for Construction

So, what features should one look for in construction accounting and financial management tools? Below is a summary of what we considered while evaluating different software products. The needs of one construction company could differ from the rest, meaning all of these features may not be required by every firm.

Job Costs

The main advantage of construction accounting systems is that they help integrate the company’s general ledger with the data from individual jobs or projects. Such software must be able to track this data across project phases, including the critical comparison of estimated and actual costs. As part of job costing, there are several functions that any top construction accounting software must offer.   

Budget management — allows budgeting for individual projects based on project-specific parameters. 

Cost comparison — accounting for a construction company requires comparing estimated and actual costs for projects of any length. Besides overall costs, a comparison should be possible for every cost element, including materials, labor, equipment, overheads, and custom fields. Additionally, automated alerts should be generated when the actual cost nears its estimated cap under any category.

Cash flow monitoring  the construction project accounting software must generate timely reports on the extent of the project completed and billed for, allowing the tracking of income with respect to the outlay.

Production reporting — these reports provide insight into aspects such as production per person-hour or cost per unit produced. Understanding the unit costs helps track progress, manage costs, and estimate future expenses.

Billing

Another distinctive set of features in an accounting system for a construction company involves client invoicing and revenue recognition. The software should allow tracking of the work completed across different projects, billing clients accordingly, and correctly recognizing the revenue for tax and auditing.  

Progress-complete invoicing accounting software for contractors must simplify your billing process by automatically filling in most of the information. Unique fields can be filled in manually depending on the project stage completed. 

Retention reporting — this function reports the retention percentage and value for each project so that the business knows the part of the payment awaiting client approval at all times.

Cash receipt tracking — this function tracks project-wide cash receipts and maintains a record against raised invoices, making the eventual audit smooth.

Tax liability reporting — the software provides information on liabilities like sales and uses taxes on different inputs and even project- or phase-wise, so you can spend less on tax and accounting services.

Change order monitoring — ongoing projects often involve change orders or revisions in aspects like design, schedule, and prices. Bookkeeping software for contractors should allow easy tracking of incoming change orders and their approval status and assess their impact on the project cost.

Purchase order management involves tracking the expense and purchase status for materials and equipment or the inventory amount and location.

A construction project accounting solution that supports forms like G702 and G703 and other construction standards makes it easier for businesses to bid on a wide range of projects. There are related handy features in this category. For example, the ability to assign specific billing rates according to project or client speeds up invoice generation.   

Payroll

A good construction industry accounting software product should be robust enough to allow managing all payroll-related complexities. Payroll management is particularly challenging for construction companies because the wages and regulations can vary across locations. Even the same employee may be entitled to different earnings or perks depending on the project.

Multi-location processing — accounting for a construction company requires correctly assigning an employee’s time across the different sites the employee may have worked at during the payroll period. It facilitates the calculation of overall wages, tax liabilities, and deductions.  

Compliance — this function enables smooth auditing by tracking payments to different employees across all projects. The best contractor accounting software makes it easy to create reports for government agencies or demonstrate compliance with employment standards and union requirements.

Benefits calculation and tracking — based on company and project norms, the software can automatically add extras like overtime, special payment terms, fringe benefits, and so on, depending on where an employee is working. Similarly, workers’ compensation in case of injuries could differ based on where the injury occurred. This function also tracks the benefits paid in such cases.

Additional Features

These are other accounting software functions that don’t get covered in the above categories but can prove particularly useful to different construction businesses. Some construction accounting software products may offer these as third-party integrations, and some may include these as in-built modules. 

Cost estimation  construction project accounting becomes easier if the initial assessment of costs is as accurate as possible. Estimation software or accounting software modules can help by combining past estimates with the parameters of the upcoming project. 

Project management — separate project management software or modules can help with vital functions such as project planning, scheduling, and resource allocation. Efficient management of these aspects can improve overall financial management substantially. 

Time tracking — timesheet apps enable workers to log their labor hours, which can be imported into the accounting system for review, approval, and recording. 

Field data — as the name suggests, this integration or module in contractor accounting software allows on-site managers to quickly record real-time data such as inventory receipts, equipment usage, job progress, issues faced, etc.

Equipment use — equipment is an integral part of a construction project, with proper recording of purchases and usage required for tax purposes. This function facilitates the tracking of fixed assets and their depreciation.

Inventory management — close monitoring of the inventory — amount, location, use, cost — helps financial management and project costing. Specialized apps for these are often better suited to track inventory across many projects.

CRM integration  allows companies to link all their client information with their overall accounting system. It can improve client communication and help manage leads and existing clients.

Payment solutions — the best accounting software for contractors, will include integrations with payment gateways to facilitate quick and hassle-free payments to vendors or other payees. 

Data analytics — many businesses require advanced data analysis to obtain insights into profitability, foresee potential challenges, and make more accurate estimations for future projects. Several products for construction company accounting now incorporate these business intelligence features.

Permit tracking — construction projects often require multiple permits from different agencies. A module or app to track these permits can keep managers updated on the approval status or alert them if new permits need to be applied based on change orders.

Reviews of Construction Accounting Software 

QuickBooks Contractor

QuickBooks Contractor is one of the industry-specific desktop-based offerings from the accounting products firm. It adds several construction-related job-costing and invoicing features to the standard general accounting ones, which most growing construction businesses will find very useful. 

Pros 

Cons

QuickBooks Contractor is meant for construction ventures looking to combine job costing with general bookkeeping and simplify tracking materials used. It is also great for firms with different crews working on various projects. There are several other aspects where the desktop version proves better accounting software for construction contractors than QuickBooks Online.

With QuickBooks Contractor, you can easily create job estimates and share them with customers. When you make modifications, the software produces change orders automatically to send to customers, while purchase orders are created directly from the estimate screen.

Similarly, invoicing gets simplified because of the direct link to the job estimates. The software allows you to create in-progress invoices or select specific items to invoice for, with an option to add the remaining amount later. 

Additional notable features that make QuickBooks Contractor the best accounting software for a construction business include the ability to assign employee wage costs to specific jobs and even service items on the estimate, automatic assigning of payroll taxes to jobs, and easy tracking of expenses through uploads of receipts. 

The mobile app can help you upload receipts and bills, attach documents, and scan inventory barcodes. Apart from the app, the software makers have recently added several other improvements, including better security features, more robust ecommerce integration, and enhanced computing power for a more efficient application.

According to construction accounting software reviews, one of the highlights of QuickBooks Contractor is its advanced reporting. You can use reports on job profitability, estimates vs. actuals, progress invoices vs. estimates, unpaid bills, and others to keep tight control of your overall business.   

There are a few noteworthy negatives. While the overall interface is not tricky to master, a more streamlined design would have been nicer. More importantly, if strong support for collaboration and the ability to work on the go is critical criteria, you are better off with QuickBooks Online. The QuickBooks accounting software for contractors doesn’t have great construction management features either, so you need to integrate software like Buildertrend with QuickBooks Online. 

Pricing: You can opt for QuickBooks Contractor when purchasing QuickBooks Premier Plus as an annual subscription. The subscription price is $549.99 for one user, with $300 more for each additional user up to five users. For more users, the Enterprise 22.0 edition is available, with pricing directly offered by the QuickBooks sales team. The firm has a 60-day refund policy.

Sage 100 Contractor

Sage 100 Contractor, formerly known as Sage Master Builder, is ideal accounting software for a small construction business that has outgrown its general accounting functionalities. While it packs essential features a construction firm requires, larger firms might prefer Sage 300 Construction and Real Estate for more advanced automation and personalization options.

Pros 

Cons

Sage 100 Contractor is cloud-based software suited for job costing, scheduling, and equipment tracking. Along with being accounting software for the construction industry, it has project management features and some handy ERP functionality, negating the need to purchase multiple products.

The software features a customizable dashboard convenient for accessing different modules from the left-hand menu or the icons displayed on the main screen. We particularly like the option to see a workflow diagram by clicking on tabs in the main menu bar, which users can utilize to visualize the flow of transactions from the beginning to the end.

Job costing is a critical area in construction accounting, and the software works well on this front. Generating detailed cost reports on job status, labor totals, and billing is easy. 

This contractor bookkeeping software lets you choose between simple invoicing or AIA-compliant invoicing for accounts receivables. You can add items such as amount, quantity, discounts, and tax status in the former. The latter works for progress billings, common in many projects now. Similarly, for accounts payables, the software makes it convenient to track purchase orders for different order numbers and the changes in costs per job. 

Inventory management, which could also be considered a project management aspect, has features to easily track the amounts and locations of materials. It’s also easy to allocate inventory to jobs and see its movement from source to destination.

Sage 100 Contractor has other features that make it robust construction project accounting software. You can use it to manage your budgets and export estimates, purchase orders, and subcontracts. Job estimation becomes easier with detailed information on materials needed, automatic cost calculation, and vendor comparison.

Other project management features assist with equipment management and scheduling. The Report Writer Wizard meanwhile creates customized reports on any data tracked in the system — from basic income statements and balance sheets to advanced ones on payroll and cost estimation. 

On the negative side, probably the most significant issue is the learning curve of this construction accounting software which makes it more effective if you have an in-house accountant. However, there are several resources for assistance, including an in-built library and community forums. The second notable issue is with the mobile app. It helps share documents and updates across different personnel but doesn’t have accounting features. Finally, the software is an excellent option if you don’t already use a project management product. You might be better off with a more accounting-focused solution if you already do.

Pricing: Sage Group does not provide pricing for its accounting products on the website. Interested firms should contact the sales team for quotes. 

FreshBooks

FreshBooks is among the best accounting software for construction businesses and the best accounting software in general, despite not having a specialized module for construction accounting and being weak in some construction-related areas.  Its ease of use, great collaboration functions, and robust features make it perfect for construction businesses.  

Pros 

Cons

Construction firms will particularly like FreshBooks for its invoicing and time tracking features. It lets you easily add different items, such as inventory, labor, and sales tax, to your invoices. 

The invoices section has other handy features suited for any top accounting software for builders. These include the creation of recurring invoices and filtering of outstanding invoices. You can also offer your clients multiple ways to settle accounts, with options such as credit card payments, Google Checkout, and PayPal, as well as support for multi-currency invoicing.

The accounts payable features are also designed with convenience in mind. FreshBooks’ various billing and vendor management features work smoother if you connect your bank account to the system. 

One of the greatest strengths of this accounting software for construction companies is how easy it makes to manage workflows across different projects. Creating estimates is easy with items such as inventory, labor, and taxes. Making changes to these estimates later and comparing them with actuals are equally breezy. These PM features work in tandem with invoicing to make it easy to keep track of timelines.  

Another strength is the software’s time tracking. It lets you bill your clients more accurately and allows your employees to log their time for the projects they work on. 

However, one critical project-management-related aspect where FreshBooks loses out to other construction company accounting software is inventory management. It does allow adding inventory details to bills, but tracking the cost, quantity, and movement of material is not possible. Since these details are essential in construction, especially when a firm’s handling multiple projects, this aspect could decide whether you choose FreshBooks for your construction accounting.

On the upside, FreshBooks scores well on reporting, mobile app, and customer service. You get a wide range of reports, from general ledgers to customer income, accounts receivable and payable aging, and so on. The app is among the better ones with accounting software for builders, acting as an extension of the browser version. You can do pretty much everything on it that you would from your office. FreshBooks is again among the best of the lot in customer service, providing prompt phone and email support. 

Pricing: FreshBooks has four plans: Lite (five billable clients, $15/month), Plus (50 billable clients, $25/month), Premium (unlimited clients, $50/month), and Select (unlimited clients, custom pricing). Yearly subscriptions can earn you sizeable discounts. A 30-day free trial is available.  

Zoho Books

Zoho Books ranks among the best accounting software for small construction business owners because this cloud-based product is rich with handy features. While it does not have a specific module for construction accounting, its excellent project accounting and invoicing features make up for its few negatives.

Pros 

Cons

The software’s job costing features can be accessed through its Project module. The program makes it easy to add items such as inventory, labor, and taxes and convert them into invoices post-approval. As the project continues, assigning actual values to these items is equally simple. Zoho Books scores as high as any top construction accounting software on this front, as its effective job costing can make the entire construction accounting a lot more systematic.

The invoicing feature in Zoho Books is among the best in class, with options to use templates and add logos and personalized messages for clients. You can also send invoices in different languages and currencies. Plus, there’s the option to send recurring invoices or schedule them in advance. Essentially, the degree of customization possible is impressive.

We also found the accounts payable features very well-designed. Managing bills, expenses, vendor credits, and more is convenient, as is creating purchase orders. Payment reminders can be set up for recurring payments to vendors or subcontractors. This contractor accounting software automates the entire expense management workflow, making it easy to categorize all your transactions.

Some other areas Zoho Books does quite well are banking and cash management, handling of taxes, and reporting. The software is also ranked highly for its excellent customer service and mobile app. 

For paid customers, Zoho Books offers phone and live chat support. Plus, there are comprehensive self-help resources, including webinars and videos. The mobile app complements the software’s browser version, allowing users to get most of the work done from anywhere or collaborate with different project stakeholders.

The aspect where Zoho Books beats the competition is inventory management. The software makes it easy to track stock levels and manage detailed information on materials, including quantity, cost, and location. The only issue is that inventory tracking is unavailable with the two lower-tier plans. However, you may find comparable or better options in these areas among other accounting software for construction.

Zoho Books is far from perfect. It lacks payroll management features, an area where other construction accounting products prove stronger. It offers integration with SurePayroll, but you will have to spend extra for this feature. 

The other issues, albeit not particularly significant, are the interface, the small number of third-party integrations, and some limits on lower-tier plans. However, overall, there are enough positives to place it among the best accounting software for a construction company, especially if using Zoho Books in combination with Zoho’s construction project management software.

Pricing: Zoho Books offers four subscription plans, with monthly or yearly billing — Free (one user + one accountant) for businesses with annual revenue of less than $50,000, Standard ($20/month or $180/year, three users), Professional ($50/month or $480/year, five users), and Premium ($70/month or $720/year, ten users). A 14-day free trial is available with all plans.

Planyard

Planyard is the go-to software for project managers looking for efficient cost management and real-time profitability tracking. However, it lacks vital accounting features such as invoicing and inventory management. For these, firms can utilize the software’s integration with general accounting products for a complete construction accounting software product. 

Pros 

Cons 

Despite not providing everything a firm would need in terms of accounting, Planyard remains a popular choice among construction firms. It’s due to its convenience in critical areas like job costing, budget management, and subcontractor and vendor management. The robust security and backup features of this cloud-based accounting software for construction companies ensure that all project team members can collaborate in real time without worrying about data loss or misuse.

Before we dive deeper into Planyard’s features, note that some of these are available only with the higher plans. Potential customers are advised to go through the plans in detail to understand what they get for they pay. Having said that, even the base plan for small projects incorporates the most vital budget, cost, and subcontractor management features and relevant integrations with third-party tools.

Let’s begin with the interface of the Planyard contractor bookkeeping software, which is easy to understand for anyone comfortable with spreadsheets. It’s convenient to import and export Excel data, lock estimates, and share details selectively with others. You can quickly get down to project cost management by interlinking different items on logging in.

Planyard stands out with its real-time tracking capabilities, which cover critical aspects like how actual values compare with the estimates, what has been ordered and invoiced, and how profitability is changing. Handy additions like outlook add-ins, warnings for duplicates, and a mobile app make the tracking process more synchronized. 

Another significant plus in this accounting software for construction contractors is the ease of managing relationships with subcontractors and vendors. Planyard allows the project manager to track all third-party information from one dashboard. With the highest-tier plan, you get features that help with automatic bid collection, bid comparison, multi-round bidding, and bid scenario analysis. You can also get subcontractors to feed in progress reports that automatically get synced with the overall system, minimizing repetitive data entry and lowering the chance of error.

Planyard’s most significant negative is that it’s not as comprehensive an accounting product as some other options available to construction managers. To counter these, the software offers integrations with a few other tools, such as Xero and QuickBooks. However, when this construction accounting software cost is combined with other tools, it may not make economic sense for all small to mid-sized firms.

Pricing: Planyard offers four plans priced on a per-project per month basis. These are Small ($24), Medium ($61), Large ($244), and Ultimate (Price after consultation). The firm offers a 14-day free trial with all plans.

Bill.com

Bill.com has made a name for itself as an AI-enabled tool that automates accounts payable and accounts receivable processes. Strictly speaking, it’s not accounting software for construction, as it has virtually no support for costing or inventory and payroll management. However, it is worth considering for its convenience in managing the workflow with clients, vendors, and subcontractors for small construction companies. 

Pros 

Cons

The most significant advantage of Bill.com is that it cuts down the time for paying vendors by nearly 50%, according to some reviews. This bookkeeping software for contractors uses an AI-based intelligent virtual assistant technology to automate the invoice capture process. You or your vendors can import bills into the software, which converts them into electronic records. Removing the manual data entry step can significantly simplify the entire workflow. 

Even better, you can set up approval workflows that make regular bills’ approval and payment process faster. Plus, there’s support for various payment modes, including ACH, check, cards, and international wire transfer.

Getting paid from clients is equally convenient with this contractor accounting software as its automation features are also available for accounts receivable. It lets you send professional-looking invoices within minutes and provides customizable invoice fields. There are options to send invoices by email or regular mail and set up recurring invoices. With features like auto charge, usually manual processes can be automated, allowing you to focus on other management aspects. 

Moreover, you can conveniently track the payment status from the Bill.com inbox and set automated reminders to follow up with clients. Again, with these features, this bookkeeping software for contractors makes getting paid less hassle and much faster.

Another positive with Bill.com is its usability, starting right from the quick setup. Within minutes, users can begin importing their bills, invoices, and contact lists. This is particularly easy if you are using Bill.com as a standalone application. However, the system also works smoothly with other accounting products such as Xero and QuickBooks, allowing you to streamline your workflow easily. This accounting software for the construction industry can also be integrated with several standard non-accounting solutions, so importing or exporting data across tools is hassle-free. 

In recent times, Bill.com has also worked on navigation within the system. Starting from its Overview page, even first-time users will find it easy to figure out its intuitive interface and start assigning roles to other team members. 

The other noteworthy plus point is Bill.com’s mobile app for Android and iOS systems. With minor differences, most of the data entry and transaction options available in the browser are available on the small screen. Thus, much of your billing and invoicing work can be done outside the office.

The only significant flaw with Bill.com is that it’s not full-fledged accounting software for a construction company. Most firms would need to pair it with another product. However, in terms of payables and receivables — two critical areas in the construction industry — Bill.com does a lot more than your standard double-entry accounting system.

Pricing: Bill.com has four monthly plans for businesses. The Essentials ($39/user) and Team ($49/user) plans will have accounts receivable or accounts payable features. The Corporate ($69/user) and Custom Pricing options include both sets of features. There’s also an Accountant Partner Program for $49/month. Bill.com offers a one-month risk-free trial.

How to Select Contractor Accounting Software for Your Construction Business 

While at this point, you probably have a pretty good idea of what constitutes a good construction accounting product, you might not be sure how to select one for your needs. Our short two-step guide is here to help. 

Define the Features You Need 

To do that, take a closer look at your business. How big is your construction business currently, and how likely is it to grow going forward? How many locations do you work on at any given time, and how do you switch your employees between them? How many people need access to the construction accounting software, and are they based in an office or work remotely? How many suppliers do you work with, and how often do you order with them? 

Answering these questions will help you determine the features you need. We advise you to list all features you would like your solution to have and then divide them into two categories — must-haves and nice-to-have. Now check which software have all those features and narrow your search to them. 

Set a Budget 

Plan your budget carefully and consider an annual subscription since these often come with significant savings. If your budget undershoots the price of the construction accounting software with all the features you need, scrap the nice-to-have features and look for solutions with your must-haves since fewer features often equal lower cost.    

Construction Accounting Software FAQ

Is construction accounting different? 

While construction accounting has the same fundamental principles as general accounting, it also has certain distinct features that help contractors manage the financials of individual projects and the company as a whole. 

What should I look for in construction accounting software? 

The essential features of construction accounting software relate to job costing, billing, inventory and payroll management, and project management. 

What is retention in construction accounting? 

Retention is a percentage of the amount due to a contractor from a client that the client holds back until the project is completed. The retention is usually 5% or 10% and is meant to incentivize the contractor to complete the project as agreed.