In this article, we will look at a few features that are important for construction companies.
We’ll look at ways to manage payroll and accurately account payables. And don’t forget to take our free trial offer! We promise you won’t regret it!
Accurate Account Payables
When it comes to accounts payable, accuracy is essential for the success of a construction business.
Without accounting software for construction, you will have to manually track invoices, find cost codes, figure out who is going to approve the payment, and then meet with each individual approver.
Luckily, today’s construction accounting software streamlines the accounts payable process and reduces the number of errors and costs associated with it.
With accurate account payables, you can easily calculate your cash flow. In addition, you can set up different bill categories for each job and define billing as ‘fixed fee’ or ‘extras.’ This way, you don’t have to worry about double-entry.
Construction accounting software allows you to define the number of change orders you issue, as well as define extras such as insurance and taxes.
Easy Invoice Management
Construction-specific accounting software should allow you to easily manage invoices for the entire construction process.
For example, Wave’s Smart Dashboard allows you to categorize your expenses and notes, as well as search past transactions.
Using mobile apps, you can easily record time, expenses, and other data, as well as invoices and payments.
Other features include unlimited bank account connections, customizable payment options, and money transfers.
Depending on the needs of your business, you may even want to consider the Accountant version.
Construction-specific accounting software is often integrated with popular construction systems, which allows accounts payable teams to automate the entire accounts payable process.
The accounts payable team can access vital documents and see the status of payments.
In some cases, it can even utilize OCR technology to extract essential data from invoices, which can then be matched to purchase orders and processed automatically.
And once they’ve completed processing invoices, accounts payable teams can route them to their respective departments.
For payroll management, the construction industry can make use of specialized programs that can help companies keep track of employees.
Some of these programs integrate payroll with other business processes, such as human resources. The Starter Plan includes a bank account connection option and allows users to keep track of project expenditures.
Other features include an import feature for data from local suppliers, including updated prices from Trade Service Corporation.
Additionally, construction companies can create and save customized financial reports and compare bank statements.
Better Budget And Forecasting
A better budget and forecasting feature is crucial to a construction company’s success. The construction industry suffered a great deal during the COVID-19 pandemic, which led to halted projects and the loss of jobs.
With trillions of dollars in government aid, the industry is on its way to recovery.
But in order to stay on track with its finances, construction companies need a budget and forecasting feature in their accounting software.
Many construction firms are choosing cloud-based construction accounting software over on-premises solutions. Cloud-based software allows for convenient online access.
On-premise software is installed on a limited number of physical devices within the company.
Cloud-based tools are becoming more common in construction firms, as they’re easier to use, update, and support.
However, they come with a downside: they typically require ongoing subscription payments, which can quickly add up.
The best accounting software for construction firms should provide cost management features to help the construction industry control costs.
Typically, construction-specific software can create custom invoices and allow you to manage budgets. Several construction-specific accounting programs also include the creation and tracking of change orders. Using these tools to manage project costs can help you analyze the performance of your projects and ensure that you’re spending within a budget.
Cost management features: The most important feature of accounting software for construction is the ability to manage costs.
Construction companies require flexibility when it comes to reporting, so it’s important to choose a program that can handle the business’s unique needs.
Mahesh Kumar is a dynamic marketing consultant and tech enthusiast with a passion for driving business growth through his innovative strategies and cutting-edge technology. With 6 years of experience in the industry, he has helped numerous businesses leverage the power of digital marketing to reach their target audience, build brand awareness, and increase sales.