Construction accounting software or construction billing software is an online accounting tool that renders sophisticated features for complex payroll processing, job costing, subcontracting, equipment management, and other financial management processes. The main difference between the generic accounting systems and construction accounting systems is their ability to make the accounting staff allocate job costs by CSI code and job. Usually, construction billing systems are used by businesses when they reach a specific level of sophistication, mainly when they have over five concurrent projects of a particular size. Some of the common modules of any top-rated accounting software are general ledger, job costing, financial reporting, payroll management, and so on.

Accounting for construction companies is usually more complicated as compared to when it comes to most businesses. In your construction companies, it is crucial to perceive the method of bidding on projects, billing clients fairly and accurately, understand which projects are beneficial for your business, and make the most of your company’s resources. These things are important to undertake the activities of reporting, tracking, and categorizing other expenses and costs in your construction business. There is a need to currently generate daily reports in the field and submit them to the department of accounting regularly for accurate job costing.

The accountants have to manually enter the reports into the accounting system on a regular basis which generates backlogs on paperwork and is quite time-consuming. An effective way of keeping a record of what costs are being incurred at the time of the construction project is to make use of an integrated software platform. It enables frontline workers to accomplish and submit daily progress and cost reports, change orders, and time cards as well. As it is the world of digitization, both accounting office and field workers can access the reports, which enables accurate tracking to ensure profitability and fast solution for any costing problems. The platform of software just operates as the line of communication between the accounting office and the field which further minimizes errors.

There are several reasons behind using construction billing and accounting software which are as follows

Enables More Accurate and Faster Accounts Payable and Receivable

The construction billing software generates information that is more easily reviewed, verified, and compiled. This encourages more effective collection and payment processes.

Boosts Confidence of Potential Clients

The use of billing software for construction businesses increases the confidence of potential clients as it helps them to decide the cost and effective methods of doing a project. With the addition of software, it leads to adding credibility for winning the project easily and also impresses the client.

 Keeping Records is Safer

Documentation is important for all kinds of projects and sometimes it acts as the originator or target of a project-related lawsuit for the protection of the company and it is only possible with reliable accounting software.

Tax Filings

Registered taxpayers in the construction industry can make sure that their taxes are correctly computed and paid using the software of accounting for a construction company.

Better Access to Information

Billing software for construction businesses centralizes data collection and thereby allows everyone instant access to updated details. Such instant access leads to smooth work progress. It also corrects mistakes, settles or prevents arguments, or prevents mistakes from occurring.

More Profitable Project Control and Command

Effective accounting software exponentially enhances change orders, costs, materials, tracking, time management, recording, subcontractor work, and other facts. The software can present up-to-the-moment operational and financial project pictures.

Financial Reporting

Billing software for construction companies now eliminates the need to go back through reams of time-consuming paperwork, receipts, and documents by displaying the numbers on the screen within seconds. Efficient software can save a lot of your valuable time.

Check out some of the features of construction billing software given below:

Financial Analytics and Reporting:

One of the best features of construction billing software is financial analytics and reporting, which help in better managing your construction company. It comes with the facility to customize reports and email them on a scheduled basis.

Job Cost Tracking:

Construction billing software equips with a job cost tracking feature that helps track actual costs and estimated costs in real-time so that you can stay informed about the tracking process of a project in terms of profitability.

Payroll:

The software now includes payroll solutions that help you manage payroll processing. The construction billing software makes payroll processes easy and smooth.

Equipment:

Various companies find construction equipment as an important investment. The software offers the potential to manage depreciation schedules and enter fixed assets to comply with the regulations of the IRS.

Material & Time Billing:

The construction company might invoice as per materials and time especially for projects that do not use AIA billing. The accounting software generates bills on the basis of any applicable markups and billable project expenses.

Multi-division, Multi-company:

Accounting software is used when construction companies have multiple divisions and offices. It helps them analyze, manage, and track financials holistically and by divisions or offices.

Inventory Management:

Every construction company needs to control its inventory and manage its products. The accounting tool, which has in-built inventory management software, offers inventory control abilities and tracks pricing, items, usage, and purchasing as well. This feature makes sure that your team is always equipped with the supplies necessary to keep projects going forward.

For more industry-specific solutions, check out our transportation billing software to further streamline your business operations.