Construction accounting software does much more than just track where the money goes. With today's technological advances, construction software can track jobs, create invoices, take care of payroll, track documents and much more. Companies who take advantage of this type of software have a leg up on the competition. In order to make sure your company gets the right type of construction accounting software to suit your business needs, learn a couple key terms and basic concepts before you get started.
Related: Find the perfect accounting software with a free comparison checklist.
Construction management software must have accounts payable capabilities, which means it must be able to track payments, bills, checks, and create and track invoices.
As with many companies, keeping track of inventory is one of the most important aspects of the construction business. Construction accounting software must be able to incorporate inventory levels and the pricing and costs of ordering inventory.
Construction accounting software must be able to handle accounts receivable functions. Being able to bill customers, track payments, and create invoices and reports are all essential to a growing or established construction company.
Job cash flow
Construction services work on a job-by-job basis. It is important, then, that the construction accounting software that you choose for your company can track and report on the cash flow for each job.
Bids are what contractors give to clients letting them know how much a job will cost them. They are an essential part of a construction company's ability to get jobs. They must be professional and companies must be able to use their accounting software to help create bids and keep track of them.
Proposals, invoices, work schedules and more must all be able to be tracked by a construction company's accounting software. Having all documentation in one system allows for better customer service and more efficient time management.
For more information about construction accounting software, visit our guide pages: "Construction Accounting Software Education and Training" and "Choosing Contractor Software."