Accountability and reliability are two positive descriptors you want associated with your reputation as a construction contractor. When clients, workers, and subcontractors have trust in the forecasts you present, you’re more likely to satisfy all stakeholders and earn new referrals for future projects.
Accounting systems help you present accurate forecasts related to costs, resources, work schedules, and payroll planning. Proper accounting resources also help boost the total profitability of your contractor business. When the average construction business generates a net profit margin between 3-7%, every dollar counts to maximize your profitability.
Unfortunately, traditional accounting work as a contractor is very tedious and time-consuming. That’s why investing in the best construction accounting software for contractors can simplify your workload and help maintain accurate projections.
Best Accounting Tool for Construction Businesses
Certain accounting tools are designed for specific types of construction businesses. For example, your accounting needs are largely dictated by the size of your contractor business and the total number of workers or subcontractors on your crew.
Contractor Foreman
If yours is a small to mid-sized contractor business, then a platform like Contractor Foreman is the best accounting tool to support your construction business.
Key Features of Contractor Foreman
What makes Contractor Foreman so useful for small to mid-sized construction project managers is the direct integration with leading accounting tools. QuickBooks is a popular accounting management platform for small to mid-sized business owners, and Contractor Foreman seamlessly integrates with QuickBooks. This way, you have a centralized domain to manage:
- Project forecasts
- Expense tracking
- Hourly invoicing
- AIA billing
- Real-time cost tracking
- Work schedule management
- And more
The QuickBooks 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 Contractor Foreman
It’s not just the integration with QuickBooks that makes Contractor Foreman a top solution for construction contractors. Seeing as it’s tailor-made for small to mid-sized businesses, it’s extremely affordable compared to larger, clunkier solutions. You’re only required to pay $49/month to access the essential components of the Contractor Foreman platform.
Contractor Foreman is not just built to simplify accounting for your contracting business. It also includes built-in work scheduling, time tracking, and client management features. Basically, you can run your whole construction business out of your Contractor Foreman account.
How to Choose the Best Construction Accounting Software
Selecting the right construction management software will ultimately make your job as a construction project manager easier and more efficient. Any piece of software is a tool, and the tools you use should simplify your day-to-day tasks.
Here are some of the key considerations when selecting the best construction accounting software for your contractor business.
Company Size and Flexibility
You’ve already learned about how the size of your business influences the types of solutions you should invest in. Another factor to consider is scalability. How much are you forecasting to grow, and what do you anticipate you’ll need as you get bigger? Scalable solutions like Contractor Foreman allow growing contractors to achieve new success, while enterprise-focused tools such as Sage 300 help larger firms manage higher volumes of projects.
Essential Features
Look for an accounting solution that will support all the other aspects of your contractor business. This includes details such as bids and proposals, payroll management, or expense tracking—all of which directly impact the overall profitability of your business. Contractor Foreman has all these solutions, as well as customizable reports for project evaluations.
Integration Capabilities
It’s not just the new features you’ll use in your construction accounting software to consider. You also want a solution that seamlessly integrates with your existing stack of solutions. Think about software compatibility with existing tools, like CRMs or other project management software, as you evaluate your construction accounting software options.
User-Friendliness
Remember that any new technology should make your life easier. That means the solution must be user-friendly and simple to manage. Otherwise, you’ll spend more time on the software and less time focusing on growing your business.
Benefits of Using Construction Accounting Software
Now, here are some of the benefits and outcomes you can expect by using construction accounting software to modernize your contracting business.
Improved Financial Tracking and Reporting
The purpose of accounting and finance management is to gain a more in-depth understanding of the overall profitability of your business. Tools like Contractor Foreman offer real-time insights into costs and profit margins, allowing you to make strategic decisions about how to expand your business for future growth.
Enhanced Job Bidding and Budget Management
Accounting software isn’t just meant to track expenses and manage ongoing project costs. It’s also designed to help fortify your bidding strategy so that you can earn the jobs you want to do at rates that are feasible for both you and your clients. Your construction accounting software will help you solidify winning bids and control your budgets to boost profitability.
Streamlined Invoicing and Payments
Of course, at the heart of any good accounting system is the ability to deliver proper invoices and administer payments to the right people. With a construction accounting software solution like Contractor Foreman, you can simplify the billing process thanks to direct integrations with AIA billing—delivering accurate invoices and administering smooth payments.
Integration of Accounting with Project Management
Whether you’re just starting your business or you’re an expert contractor with a stellar brand reputation, successful growth always comes down to effective project management. Using Contractor Foreman, your accounting tasks are directly integrated with and complemented by your project management capabilities. Both processes are made simple so that you manage your projects—and they don’t manage you.
Pricing and Cost Considerations
Finally, since we’re talking about construction accounting software, this guide wouldn’t be complete without some tips on pricing and cost considerations. Here are some details to keep in mind as you review your options.
Affordable Options for Small Businesses
Affordability is the most important consideration when selecting construction accounting software, and that’s where Contractor Foreman can’t be beat. Contractor Foreman is an accessible choice for all construction contractors, with plans starting as low as $49/month.
Factors Influencing Costs
Your chosen solution should simplify your life and make your workload more efficient. Think about all the ways a construction accounting platform can save you time and money, and then review options that include all those items on the checklist. Things to keep in mind include:
- Job bidding capabilities
- Third-party platform integrations
- Simplified payroll management
- Number of users on your crew
- Level of customer support
Which Accounting Method is Best for a Construction Company?
What accounting method do you use to manage your business? Do you deal strictly in cash, or do you use accruals to manage certain client projects? Will you need flexibility to use multiple accounting methods, depending on the type of clients that contract your services?
If flexibility is essential for your business, Contractor Foreman earns another notch in the pro-consideration column. The platform supports both cash-only and accrual accounting methods, giving you greater freedom to take on new projects while maintaining accurate financial reporting for all your projects.
Conclusion
The right construction accounting software will offer more features and capabilities than standard accounting solutions. Each of these integrations is designed to simplify the administrative side of your contractor construction business so that you can dedicate more time and energy to the parts of the job that really get your motor running.
Sign up for a free trial with Contractor Foreman today, and introduce a more robust accounting software solution to your growing contractor business model.
