Posted on 03. Jun, 2011 in Software.
Construction accounting software are accounting packages that provide financial accounting and operational modules which are specifically designed for the contractors. With a software package that is designed to address the way a construction firm works, this may result to a much more lowered operational cost, and the employers can easily track jobs and make business decisions based on accurate and updated financial information.
Nowadays, most contractors would only take on a project if they have their complete power tools. However, it is very ironic that there are still plenty of construction companies that are still using manual accounting methods in building their business. In fact, most of the smaller contractors tend to try to cut costs by using manual accounting method that still involves pens and paper. Other large companies, on the other hand, often make a mistake of using unconnected software programs — usually free accounting packages — that are not really designed for the specific needs and requirements of the contractors. These inadequate software tools may have the same results of being unprepared on the job itself. It usually takes longer to get things done, becomes inefficient, and the results are not as good as expected — and, as a matter of fact, it may be more expensive later on.
Why Construction Accounting Software Is Essential
Every contractor who is just building the business no matter how small will have to make some worthwhile investment, such as the right and efficient accounting software for small business, in order get the jobs done quickly thus to save a lot of time, ensure consistent good results, and even cut off the labor costs. This is the main reason why most successful contracting businesses of today are making the right decision to prepare themselves with the right tools (and software) to effectively manage their construction accounting.
However, there are still some construction companies, even after investing in a good accounting software, find themselves struggling with the inefficient processes. One of the main reasons for inefficiency is the lack of a single integrated system. And because business data is not centralized, the decision-makers find it difficult to make sound and wise business plans and decisions. The solution for this is a software program that is particularly designed for the unique requirements and needs of the contractor businesses.
Construction accounting software packages make accounting simple and easier to understand. They efficiently cater the needs of construction firms as they address construction specific issues like work in progress, percentage of completion, retention percentage, job costing, estimated vs. actuals reporting, job profitability, project management, change orders, and such. Of course, they can also handle basic accounting tasks such as receiving payment, paying bills, and creating essential and easy-to-read financial reports. Increasing the power of the software tools to be used is a good move as this will definitely ensure the company’s efficiency and profitability.
There are plenty of construction accounting software available in the market, and some of the most commonly used packages are Master Builder, Maxwell Systems American Contractor, ProContractorMX, and Jonas for General Contractors. Some of these packages offer free accounting software download for a trial period.