Construction accounting software is nothing but a spectacular 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 its ability to make the accounting staffs allocate job costs by CSI code and job. Usually, construction accounting 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 or cross about $3 million in revenue. Some of the common modules of any top-rated accounting software are general ledger, job costing, financial reporting, payroll management, and so on.
Why use myBillBook?
Activities Involved in Accounting for Construction Companies
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.
Why Use myBillBook Construction Accounting Software?
There are several reasons behind using construction accounting software which are as follows
Enables More Accurate and Faster Accounts Payable and Receivable
The software generates information that is more easily reviewed, verified, and compiled. This encourages more effective collection as well as payment processes.
Boosts Confidence of Potential Client
The use of software 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 Record 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.
Registered taxpayers in the construction industry have a huge capability to make sure that their taxes are correctly computed and paid using the software of accounting for a construction company.
Better Access to Information
Accounting software centralized the data collection and it thereby allows instant access to updated details to everyone included. Such instant access leads to the smooth progress of the work. Also, it corrects mistakes, settles or prevents arguments, or keeps mistakes from occurring.
More Profitable Project Control and Command
With the help of effective accounting software, change orders, costs, materials, tracking, managing time, recording, subcontractor work, and other facts are exponentially enhanced. The software can bring up-to-the-moment operational and financial project pictures.
Accounting software now makes you get rid of going back through reams of time-consuming paperwork, receipts, and documents by putting the numbers on the screen within seconds. Efficient software can save a lot of your valuable time.
Features of Construction Accounting Software
Check out some of the features of construction accounting software given below:
Financial Analytics and Reporting: One of the best features of construction invoicing software is financial analytics and reporting which helps in better management of 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 the payroll solutions that help you to manage the complications of payroll processing. It makes the processes of payroll 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: The accounting software comes into use when construction companies have multiple divisions and offices. It helps them to analyze, manage, and track financials holistically and by divisions or offices.
Inventory: Every construction company needs controlling of the inventory and managing of the products. The accounting tool offers inventory control abilities tracking the pricing, items, usage, and purchasing as well. This feature makes sure that your team is always equipped with the supplies accessible to keep projects going forward.
AIA Billing: It is true that few projects need AIA billing which helps in progress billing. It assists in preparing the AIA billing schedule and records of values for the construction company.
FAQs – Accounting for Construction Company
- What is the difference between desktop and cloud accounting software?
For using desktop accounting software, you have to install the software on your computer and then you have to run it. On the other hand, cloud accounting software simply operates on the internet without being the need to install it on your computer.
- Does accounting software overkill the startups?
If you want, you can manage your finances on paper or in spreadsheets. But, you should require filing your returns if you have employees or are registered for VAT. The construction accounting software helps you to manage all the finances smoothly and thereby prosper the business. For sure, the accounting software will leave you confident regarding the success of your business without a doubt.
- How can I ensure that accounting software would be the right choice for the long term?
Before selecting your accounting software, you should consider your future plans and agendas for your business. Also, you have to discover that if the software will support your business by all means. If you want, you can even go for a package that includes the option to add new features or upgrade.
In addition, there are various packages that provide you with plug-ins or add-ons that further offers additional capabilities and features. Moreover, there are many leading software providers who are increasingly creating ecosystems or marketplaces that allow you to connect with software packages with ease.