By considering the factors outlined above, you can find a service that is equipped to handle the challenges of the construction industry. Make a well-informed decision to partner with a bookkeeping service that supports your business’s success and helps you manage your projects effectively. Merritt Bookkeeping simplifies financial management for construction and contracting businesses with a flat-rate service of $190 per month. They offer automated banking, QuickBooks-based bookkeeping, and easy-to-understand financial reports. Golden Apple Agency provides financial solutions with a focus on the construction industry, delivering detailed and accurate financial management for optimal business performance.

Construction Accounting Solutions for the Contractor

When selecting a bookkeeping service for your construction or contracting business, it is important to choose one with experience in the construction industry. Look for services that understand the specific needs The Role of Construction Bookkeeping in Improving Business Efficiency of construction businesses, such as job costing, progress billing, and compliance with industry regulations. Ensure the service offers scalability to accommodate your company’s growth and changing needs.

• Sage Intacct Construction provides a wide range of tools to manage the financials of construction projects.
• Not only will this help you prepare for tax time, but it provides an accurate accounting of profitability for each contract.
• With a team of experienced professionals, Alpha Apex Group delivers bespoke bookkeeping solutions that address the specific challenges faced by construction companies and contractors.
• Construction companies should use a percentage-of-completion method that recognizes both revenue and expenses as they are accumulated over time.
• The construction cost control software is ideal for contractors who streamline processes and improve project profitability.

Methodology

• The implementation of technology, business strategies, and financial requirements requires a trusted advisor.
• Premier provides you with a customizable dashboard that gives you the insights you need to manage every aspect of the job.
• Golden Apple Agency offers specialized accounting and bookkeeping services for construction companies.
• Premier is the most comprehensive construction accounting software on our list, earning the best overall.
• To help you separate the wheat from the chaff, here are the most essential features to look out for when choosing a construction accounting solution.

The work-in-progress dashboard allows you to mark the percentage of jobs completed, adjusting the costs and cash-flow predictions as you go. The budget view provides an overview of the project’s original or estimated costs. Firstly, establish a well-structured chart of accounts that meets your business needs, which is the specially tailored list of items you use in your construction business. Xero integration with banking accounts helps to access financial data without manual extracting and reporting. The Xero projects dashboard comprehensively overviews all your portfolio projects and their performance. Double-check if the invoice corresponds to the purchase order, track the payment summary to ensure you do not overpay the vendor, add a variation, and hit submit.

Accounting Basics for Contractors and Construction Businesses

Those offering transparent pricing fared better than those forcing you to provide data to get a custom quote. We also looked at the range of costs between the various pricing tiers that a provider offered and the value that those plans offered to users. This software is best for contractors who have multiple projects happening simultaneously.

How do you record construction expenses?

Learn how a 3PL company improved efficiency by partnering with Invensis and minimizing errors in AP and AR invoice processing. This blog accounts receivable turnover ratio will introduce you to the basics of AR turnover ratio and how you can use it to better your balance sheet.

When you’re ready to lower your taxes, build pristine financials and focus your staff with useful reports and dashboards, then connect with us for a free consultation. We looked at third-party ratings and reviews to see how actual users felt about the software. The average threshold rating needed to be 3.5 stars or better to get the highest rating in our research. We turned to popular sites, including Trustpilot, G2 and Capterra, for these customer responses.

Construction Advisors

This is where WIP reporting comes in, and it’s essential that your accounting system supports it. The balance sheet provides a snapshot of the company’s performance at any time. If you want to know your assets or liabilities, just look at the Trimble Viewpoint balance sheet. The job cost ledger provides a detailed breakdown of all project-specific costs. Break down the chart of accounts into sub-accounts, which are the products and services your company buys on the cost code level, which allows tracking the cost code for a specific job.

• With the right process, you can save time on your invoicing, accounting, bookkeeping, and tax preparation, even without previous construction accounting experience.
• Construction software becomes a one-stop platform for everything from prices to contracts and compliance.
• Mixing personal and business finances can lead to tax complications and inaccurate financial reporting.
• This functionality ensures that you invoice accurately and get repaid for any costs you incur on your clients’ behalf.
• Foundation breaks its software down into modules that you can put into a custom solution.

You can always track this data manually on an Excel sheet, but a good construction accounting software will do the heavy lifting for you. Along with giving a bird’s eye view of all job costing in one place, WIP reports help you plan ahead and maintain a firmer grip on your cash flow, so you’re never stuck playing catch up. Choosing the right accounting software is essential to meet the complex demands of construction.

Beyond the office, she’s a true crime enthusiast who loves traveling and outdoor adventures. Whether she’s balancing books or exploring new trails, MJ’s dedication and skill set the standard for excellence in our team. Construction accounting is confusing—it takes time out of your day that you could spend making money. By teaming up with us, you don’t have to worry about the accounting and you can rest easy knowing it’s being done right. It’s easiest to meet nearly every need on your list when you consider several potential accounting platforms instead of only one.