Some people need help learning to use its more advanced features, though Foundation offers a highly-rated customer service line for assistance. “We love the ability to work WITH our subs on our project management software instead of it being an in-house only product. There are a LOT of working How Construction Bookkeeping Services Can Streamline Your Projects points and a lot of tiny steps that are required to make certain workflows function properly. Once you get the hang of it, it’s a breeze, but getting there can be tough.” – Emily W. These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most.

Business Growth and Investment:

QuickBooks offers robust apps for iOS and Android that have most of the same functionality as the desktop and web software. These reports help identify potential cost overruns, underbilling issues, and overall project profitability. This software is best for contractors who have multiple projects happening simultaneously. This is why it has flexible billion options, such as American Institute of Architects, time and materials and freeform billing.

Does doola integrate with ecommerce platforms like Shopify?

• This approach protects clients but can negatively affect cash flow for contractors.
• Construction accounting software can automate expense tracking, invoice generation, and bank statement reconciliation.
• It establishes a “paper trail” for times when needed (for instance, an IRS audit) and can insulate against creditors if the business stumbles.
• After the project is completed, construction companies perform a post-job review to analyze and assess the job’s overall profitability.
• By implementing bookkeeping best practices, utilizing the right software, and staying compliant with regulations, your construction company can thrive financially.
• Use a journal, spreadsheets, or construction accounting software to record day-to-day transactions like accounts payable, accounts receivable, labor costs, and material costs incurred.

Construction companies should use a percentage-of-completion method that recognizes both revenue and expenses as they are accumulated over time. It aligns with the project completion ratio and most lenders or guarantors require this. Companies that had client tracking, software integrations and mobile apps performed better than those that didn’t. RedTeam is a company built out of a commercial construction firm, so it understands the needs of a construction company intimately. This is one reason it has received several industry awards, including Software Advice’s 2021 Front Runner award and making Capterra’s Shortlist. Project management is critical to meeting budgets on your construction sites.

The Ultimate Guide To Construction Bookkeeping

In this guide, we’ll review the top construction accounting software to use in 2025. For contractors, cost of goods sold (COGS) provides a vital glimpse into the profitability of a project over a specific period of time. Often referred to as “job costs”, COGS is best tracked through construction management software like Knowify. The Quick Books integration makes Contractor Foreman a top choice as the right construction management software for your contractor business. Every decision you make is backed by data thanks to these simple integrations, ensuring your projects are on schedule, on budget, and in line with client expectations. Most importantly, you’ll increase your profit margins thanks to meticulous records of all time and money spent on a project.

Benefits of Best Bookkeeping Software for Construction Companies

• With over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed.
• You can use the app to generate profit and loss reports or pull up your balance sheets, features we didn’t see much with other apps.
• Her work has appeared in Business Insider, Forbes, and The New York Times, and on LendingTree, Credit Karma, and Discover, among others.
• Construction accounting can be complex due to project-based structures, long-term contracts, hiring subcontractors, and variable costs.
• An external firm typically conducts the audit, but the findings are for internal use only.
• Accurate bookkeeping ensures compliance with these regulations, including recording and reporting income, expenses, and other financial transactions in accordance with tax laws.

Depending on your needs, Procore may be all you need to keep your finances organized and trackable. It’s a well-known tool that does the job well, provided you have the budget to pay for their service. Choosing between the percentage of completion and completed contract methods significantly affects a construction company’s financial reporting and cash flow management. The percentage of completion method offers ongoing insight into project performance and stability, while the completed contract method provides simplicity and potential tax benefits. Understanding these methods is essential for effective financial planning and operational success in the construction industry.