Managing a construction crew requires several skills and abilities, including spatial and linear math, knowledge of building materials and techniques, and even customer service.
Construction accounting software is essential for any construction company to manage time, cost, and payments on its jobs. Implementing software to address your accounting needs can be a vital next step to move from just surviving to continued success.
Why Opt For Software to Handle Accounting?
Choosing accounting software for construction projects helps manage many factors pertaining to costs and expenses, materials and equipment, and overall time for the build, just to name a few.
Using accounting software helps to centralize reporting of all related job costs, including payroll and workers’ compensation. By consolidating the reporting for the job and the company into a digital spreadsheet, the numbers are constantly updated to give a clear picture of the project’s direction.
Once a construction firm uses a software program for accounting, there is less room for human error, including under or overestimating jobs. A program like FOUNDATION® can garner consistent figures representing the actual costs involved instead of estimating. A quality accounting program can calculate job costs and helps contractors pay their crews on time with precision.
Save Money and Energy
Using an accounting program also allows for more cost specifics and analytics, which can lead to cost-eliminating changes or new routines and procedures for the business. By analyzing where money is earned and spent, the company can closely monitor where costs are too high or represent unnecessary expenditures.
Focus on What’s Most Important to You
Better accounting software would allow the team in the office to focus better on profitability and catching things like overruns on the budget.
Features to Look For in Accounting Software
When looking for industry-leading accounting software, some absolute necessities should be contained in the program. Accounting for construction projects should be more accessible, efficient, straightforward, and easy to navigate.
One of the critical components of effective accounting software is the program’s scalability. It must have the ability to grow with the company and the multitude of jobs the firm may take on. If the program is limited in its scope, the company will also be limited in its earnings and growth potential.
Job Cost Tracking
Maintaining close tabs on the costs associated with a job is critical to remaining profitable and capable of delivering quality work. Using job cost software identifies overall costs compared to previous jobs or estimates, so apples-to-apples comparisons are more possible.
Automated timecard entry, labor cost calculations, tax deductions, and payroll reports are all manageable with payroll software. Companies can effectively and accurately track employee pay rates and earnings like job expense calculations, even with multiple deductions, overtime pay, or other wage garnishments or additions.
Managing invoices and billing for third parties and business partners can become confusing or overwhelming if there isn’t a system to compile these figures and create reports for balances due.
Using billing management software gives contractors a location and system for tracking and generating billing information, printing balance sheets, and billing forms, and creating invoices with a few keystrokes.
Similar to billing management, expense management keeps accurate tabs on company and job expenses and quickly creates or calculates reports and alerts on outstanding balances and payments. Expenses management can schedule recurring payments and invoices, manage tax liabilities, and compile information for job-specific accounts.
CPA Audit/Review tools are integrated job cost accounting systems that allow you to access all critical reports in one place. You’ll have quick access to over/underbilling, job cost WIP, gain/fade analysis, overhead allocation, billing backlog reports, and cash flow by job and aging/materiality reports.
You can set up budget accrual or regular journals with or without job costing. Create two-sided entries to keep the books balanced and add entry transaction descriptions so you have a clear, traceable audit trail.
Foundation Software Accommodates Professional Needs
With FOUNDATION®, your company will find all these tools and more available in one dynamic package. Whether you’re an upstart firm striving for growth, or a larger company looking to streamline and eliminate waste, accounting software can provide a consistent and reliable framework for managing your company’s finances.
As an industry leader, FOUNDATION® offers a variety of modules for a customized experience based on your needs. In business since 1985, Foundation Software has consistently built on past successes and long-term relationships and thrives on its employees’ creativity and customer support.
Where to Find the Best Accounting Software For Construction Projects in 2023
Foundation Software prides itself as a technology leader and innovator among software companies. By continuing to leverage and implement the newest technology available, the company offers unique and innovative tools for managing all aspects of a construction company, no matter the size.
Find out for yourself why so many construction firms choose Foundation Software as their choice for job management and accounting. Contact us today to see a demonstration and learn more about this powerful accounting software.
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