Did you know that 58% of accounting firms invest in accounting solutions to meet client expectations, according to the Association of Chartered Certified System Accountants? This highlights the critical role of specialized software in managing finances efficiently.
What accounting software is best for general contractors? If you're seeking the right solution for your construction business, keep reading to discover the top choices and how they can streamline your operations.
Why Do General Contractors Need Construction Accounting Software?
What are the Unique Accounting Needs of Construction Contractors?
As a general contractor, you face unique accounting challenges that typical businesses don't encounter. Managing job costing, tracking time and materials, handling payroll, and dealing with progress billing are just a few complexities. Construction accounting software is designed to address these specific needs by offering features like project management, cost tracking, and financial reporting tailored to construction projects.
For instance, QuickBooks and Sage are popular choices because they offer customizable solutions that integrate various accounting functions to track every detail of your construction project efficiently. These tools help you monitor your cash flow, handle change orders, and ensure projects are completed on time and within budget.
Further reading: What Are the Best Accounting Software Options for Contractors?
How Can Construction Accounting Software Improve Your Business Operations?
Implementing construction accounting software can transform your business operations in several ways. These platforms provide real-time financial insights, improving accuracy in billing and ensuring compliance with industry regulations. Systems like QuickBooks Online and Buildertrend streamline workflows, reduce errors, and enhance decision-making by offering comprehensive data on every aspect of your projects.
The integration capabilities with other tools, such as customer and vendor portals, payroll systems, and inventory management, allow you to maintain clarity and visibility across your operations. This means you can keep projects on time, improve profitability, and tailor the software to meet your specific business needs.
What are the Best Construction Accounting Software Options in 2024?
Which Features Should You Look for in the Best Construction Accounting Software?
When choosing accounting software for your construction business, look for features that cater to your unique needs. Essential features include job costing, payroll management, integration capabilities, robust reporting options, and real-time financial management.
QuickBooks Online and Sage are known for their comprehensive offerings, including time tracking, budget management, and cloud-based access. Also, ensure the software is easy to use, has excellent customer support, and can scale with your business as it grows. Mobile app access is also essential, allowing you to manage your financial information from anywhere, improving overall effectiveness and flexibility.
What Makes QuickBooks Online a Popular Choice for Contractors?
QuickBooks Online is a popular choice among contractors for good reasons. It provides comprehensive job costing, time tracking, and payroll features, all essential for managing construction projects. Being cloud-based, it allows users to access their financial data from anywhere, offering flexibility for your busy schedule.
QuickBooks Online is also known for its robust integration capabilities, enabling you to connect with various other tools and systems you use daily. Its user-friendly interface, affordability, and strong customer support make it easy to use, even if you're not an accounting expert. Plus, it offers a 30-day free trial, allowing you to explore its functionalities before committing to a plan.
Further reading: Managing Your Firm's Software Subscriptions
Understanding NAICS Code 236115 and Its Importance
How Does NAICS Code 236115 Apply to General Contractors?
NAICS Code 236115 is the classification for new single-family housing construction (except for sale builders). For you, as a general contractor, understanding this code is integral. It helps you identify relevant industry standards, secure the appropriate licenses, and ensure compliance with federal and state regulations.
This classification aligns your work with specific permits, zoning, and project eligibility guidelines. Staying informed about your NAICS code can streamline these processes, aiding your construction company in running efficiently and within legal boundaries.
Why is Knowing Your NAICS Code Essential for Accounting and Tax Purposes?
Knowing your NAICS code is vital for accurate tax filing and reporting. It ensures you apply the correct industry-specific tax regulations and helps benchmark your business against industry standards.
Proper classification under NAICS Code 236115 can also help secure industry-specific loans and grants, providing more funding opportunities. It also simplifies tax audits and other compliance-related issues, allowing you to focus on improving your construction company's financial health and profitability.
Choosing the Right Accounting Software for Your Business
How to Evaluate Different Accounting Software Options?
When evaluating different accounting software options, consider the software’s ability to handle your specific business needs, its pricing, user reviews, and the quality of customer support. Look for features vital for your operations, such as job costing, payroll management, integration capabilities, and financial reporting.
Software like Procore and Sage offers robust tools for managing your general ledger and generating accurate estimates. Requesting demos or trial periods can provide a hands-on feel for the software’s functionality. Also, check if the software offers mobile app access for on-the-go management and whether it can scale with your business as it grows.
Tips to Know What Accounting Software is Best for You as a General Contractor
When choosing the best accounting software for your construction business, consider the following tips:
- Assess Your Needs: Determine if you need cloud-based or desktop software. Cloud options offer flexibility and collaboration, while desktop versions might provide more robust features.
- Key Features: Look for software that provides essential tools like invoicing, payment management, and change order management. Ensure it has customizable dashboards and can track cash flow effectively.
- Affordability and Fees: Compare the pricing and ensure the software offers an affordable solution without hidden fees.
- Customization: Choose a software suite that allows you to customize reports and balance sheets to fit your specific needs.
- Additional Offerings: Consider software that also offers no-frills, scalable solutions like Foundation, which can adapt as your business grows.
Following these tips will help you find a flexible, accessible, and comprehensive accounting management software tailored to your needs as a general contractor.
Key Takeaways
- Job Costing: Choose construction software with robust job costing features for accurate project tracking.
- Integration: Ensure the software provides integration with other tools like project management and payroll systems.
- Mobile Access: Opt for construction software with mobile access for on-site financial updates.
- User-Friendly: Select user-friendly software that simplifies complex accounting tasks; Foundation offers a great example.
- Reporting: Look for software that provides detailed financial reporting capabilities to monitor project profitability.
How can Taxfyle help?
Finding an accountant to manage your bookkeeping and file taxes is a big decision. Luckily, you don't have to handle the search on your own.
At Taxfyle, we connect small businesses with licensed, experienced CPAs or EAs in the US. We handle the hard part of finding the right tax professional by matching you with a Pro who has the right experience to meet your unique needs and will manage your bookkeeping and file taxes for you.
