What Are The 4 Best Accounting Softwares for Small Construction Business?
TL;DR
Using the right accounting software for small construction business is essential for managing complex financials and boosting efficiency. QuickBooks Online, Xero, and Sage Intacct offer features such as job costing, expense tracking, and invoicing.
- QuickBooks Online offers project-based accounting and time tracking.
- Xero provides real-time cash flow views and has many integrations.
- FreshBooks is an all-in-one solution with user-friendly invoicing.
- Sage Intacct helps monitor job-related expenses and manage inventory.
Effective financial management plays an important role in the success of small construction businesses. Unique challenges like fluctuating project costs, complex payrolls, and intricate invoicing make manual financial management overwhelming. This may have an adverse effect on your company’s growth and bottom line by causing errors, inefficiencies, and missed opportunities.
Accounting software, especially ones tailored to your business needs, can improve accuracy and provide real-time financial insights through automation. With the help of these technologies, you can stop getting entangled in spreadsheets and instead focus on your core competencies and strategic initiatives.
This blog guides you through the best accounting software for small construction businesses. From outsourced accounting to job costing, explore the key features, benefits, and pricing details to help you streamline your financial management processes.
Top 4 Accounting Software Solutions for Small Construction Businesses
With the right tool, you can streamline your financial processes, improve accuracy, and provide valuable insights into your overall financial health. Here are the top 4 accounting software for small construction companies.
1. QuickBooks Online
QuickBooks Online is well-suited for larger small businesses with dozens of employees, and its highest-tier plan accommodates up to 25 users. With audit trails and easy accountant access, it’s a popular choice among millions of users. This small construction accounting software integrates with over 750 apps and offers a live, in-house bookkeeping add-on for added convenience.
QuickBooks Online supports project-based accounting, time tracking, and customisable invoices, making it a go-to tool for managing projects efficiently. Its automated reconciliation tools further streamline your financial processes.
Key features:
- Project-based accounting
- Time tracking and payroll integration
- Customisable invoices and estimates
- Expense tracking and reporting
- Extensive tracking capabilities
- Automated reconciliation tools
- Global search function and customisable dashboard
Pricing:
- Simple Start Plan – US $30 per month
- Essentials Plan – US $60 per month
- Plus Plan – US $90 per month
- Advanced Plan – US $200 per month
2. Xero
One of the best accounting software options for small contractors is Xero. Xero provides a comprehensive view of your cash flow, allowing you to track money coming in and going out through its dashboard and detailed cash flow reports. Its flexibility and wide range of integrations make it the best option for small construction businesses looking to streamline tasks and enhance efficiency.
Additionally, Xero allows users to create two active tracking categories, which is perfect for smaller projects and more straightforward financial tracking needs.
Key features:
- Real-time view of cash flow
- Customisable to suit your needs
- Automatic bank feeds
- Sync bank and financial information
- Access over 1,000 apps in the Xero App Store
Pricing:
- Early – US $19.50 per month (usually $15)
- Growing – US $3.75 per month (usually $42)
- Established – US $10.50 per month (usually $78)
3. FreshBooks
FreshBooks is your all-in-one financial management solution designed specifically for small businesses in the construction industry. It provides a user-friendly interface and outstanding features to help you stay on top of your finances, streamline operations, and focus more on growing your construction projects.
Key features:
- Easily track billable hours
- Organised and efficient project management tools
- Create professional invoices
- Track, capture, and categorise expenses easily
- Comprehensive financial health reporting features
Pricing:
- Lite Plan – US $15/month for basic accounting and invoicing
- Plus Plan – US $25/month for added features like time tracking and project management
- Premium Plan – US $50/month for advanced reporting and team management
4. Sage Intacct
Sage Intacct is versatile software that enables small business owners to efficiently track income and expenses in multiple currencies, manage inventory, and handle invoices. It keeps your accounting organised and offers various benefits.
Key features:
- Get up-to-date insights into your business’s financial health
- Simplify banking tasks with detailed breakdowns and status tracking
- Monitor job-related expenses
- Manage inventory to streamline operations
- Anytime, anywhere, access to your data
- Access detailed reports and analysis tool
Pricing:
- Pro Accounting – US $595 per year
- Premium Accounting – US $1,023 per year
- Quantum Accounting – US $1,728 per year
5 Factors to Consider When Choosing Accounting Software
Making an informed choice based on these factors can significantly impact your business’s financial management efficiency and overall success.
1. Ease of use and customer support
As a small construction business owner, your time is precious. You need accounting software that’s easy to use, allowing you to quickly handle your finances without a steep learning curve. Reliable customer support is also essential, as it assists when you encounter issues, which is crucial for a small business with limited resources.
2. Integration capabilities
Your construction projects require seamless coordination between various tools, from project management software to payroll systems. Choosing accounting software that integrates well with these tools can streamline your workflows, minimise manual data entry, and boost the accuracy of your financial data, saving you both time and headaches.
3. Access to expertise
Navigating complex regulations and requirements is a critical aspect of managing your business’s finances. Using accounting software that provides access to expert advice ensures compliance and offers valuable financial insights to help your business thrive. Additionally, partnering with a lead generation company can enhance your growth by providing targeted leads and expanding your client base.
4. Rapid capacity expansion
As your business grows and you take on more projects, you need the ability to quickly expand your accounting capacity. Outsourcing to a dedicated offshore admin team can help manage increased demand without the hassle of recruiting and training new employees, allowing you to focus on delivering quality work to your clients.
5. Time-saving solutions
Your primary focus should be on your core business operations, not tedious accounting tasks. Time-saving accounting software automates routine processes, freeing up your time to concentrate on what really matters—growing your business, managing projects, and serving your clients.
Elevate Your Business with the Right Accounting Software
Efficiently managing your finances is crucial for your business’s success in the construction industry. The right accounting software can simplify expense tracking, project management, and invoicing, helping your business thrive. Focus on user-friendly tools, seamless integration, expert support, and scalability to find the perfect fit for your needs.
These factors will help you choose the best accounting software for your construction business. Ready to streamline your financial processes and focus on growth? Consider partnering with an outsourcing company in the Philippines, like optiBPO. Book a discovery call with us today for a free consultation and discover how we can support your business!
FAQs About Accounting Software for Small Construction Businesses
1. What are the benefits of using accounting software for a construction business?
Accounting software allows small construction businesses to streamline their financial processes, improve accuracy, and gain valuable insights into their overall financial health. It automates tasks like expense tracking and payroll, focusing on your core business and strategic initiatives.
2. What key features should I look for in construction accounting software?
Prioritize features that address your unique needs. Look for tools that offer project-based accounting, time tracking, customizable invoices, and expense tracking. Features like automated reconciliation and reporting are also essential.
3. Which accounting software is best for small construction companies?
The best accounting software for small construction depends on its specific needs. For instance, QuickBooks Online is popular for its project-based accounting and payroll integration. Meanwhile, Xero is excellent for its real-time cash flow view and extensive app store.
4. What are some of the best accounting software options for small businesses?
Some of the best accounting software options for small construction include QuickBooks Online, Xero, FreshBooks, and Sage Intacct. Each offers specialized features to handle the unique financial challenges of the construction industry, such as job costing and intricate invoicing.
5. How does accounting software help manage project costs?
Accounting software, such as QuickBooks Online, supports project-based accounting and time tracking to manage projects efficiently. This functionality allows you to monitor job-related expenses, track billable hours, and make sure your projects stay on budget.
6. Can accounting software help with payroll and invoicing?
Yes, accounting software can streamline complex payroll and invoicing. Many platforms integrate with payroll systems and offer customizable invoice and estimate templates, making it easier to manage payroll and create professional invoices.
7. What are the different pricing plans for these software solutions?
Pricing for accounting software varies by plan and features. For example, QuickBooks Online offers plans ranging from US $30/month to US $200/month. Meanwhile, FreshBooks has a Lite Plan starting at US $15/month to US $50/month.
8. How can I improve my small business’s accounting capacity as it grows?
As your business grows, you can quickly expand your accounting capacity by outsourcing to a dedicated offshore admin team. This approach allows you to manage increased demand without the hassle of recruiting and training new employees.
