8 Questions to Ask Before Adopting New Construction Accounting Software

If you’re a builder, you want to build. You don’t want to do accounting. Unfortunatelye, we often hear tales of woe from GCs and subcontractors who encountered a billing problem and are using a subpar construction accounting software. They question what can be done.

To end these headaches, look for software to help you stay organized. Small construction businesses—where you might be both the boss and the bookkeeper—often rely heavily on accounting software. The right software can help you get your billing cycle under control, save money, save time and accurately and effectively manage financials.

There are several choices for accounting software, including programs made for businesses of all sizes. QuickBooks, and others that are more task- and industry-specific, such as Sage Intacct and Acumatica Construction Edition, are some of the solutions many in the construction industry look to. 

We’ve borrowed some helpful advice from Software Connect to give you some pointers. We won’t try to recommend one specific program—they all have their pros and cons—but these questions can help you make an informed decision:

1. Will my information move smoothly between different programs?

RedTeam recognizes that integration is important. Removing the need to enter the same financial data in multiple systems makes your job a lot easier. Integrations between accounting software and construction management solutions vary in the type of data mapped between systems. However, the best integration options allow for real-time financial data to be shared across platforms without the need for double entry.

2. Can I find what I need quickly?

Look for software with a robust search function and customized reports to make every step of the billing cycle easy. This will allow you to analyze and adjust as needed.

3. Can I set different access levels for multiple users?

It’s important to find a software program that lets you decide who can access specific parts of the software. This ability lets your team stay organized and removes unnecessary errors.

4. What can I automate?

The more your accounting software can do for you, the more efficient your billing system will become. For example, look for software that provides calculation tools, document conversion, and updates that occur systemwide when you make changes.

5. Can I use it without reading the manual?

Powerful software is a waste of money if nobody can figure out how to use it. Look for a user-friendly interface and easy access to comprehensive help functions.

6. Can I set up different tools for various projects?

Unique jobs will require different elements, such as cost variations and negotiations. Your construction accounting software should be flexible enough to handle these changes.

7. Will I look professional?

Software that can generate clear reports makes it easier for you and your team to communicate and will help you present the right image. Look for reporting templates and customization tools in both your accounting software and in the integrated construction management solution that’ll enhance your professionalism.

Of course, the best advice sometimes comes from your colleagues, so ask for personal recommendations. Use the questions above when considering the best construction accounting software for your construction business.

Visit RedTeam’s integrations page to learn more about our best-in-class construction integrations and managing your projects by integrating your other tools with our construction management and field management solutions.

Frequently Asked Questions

Q: What are the key benefits of using construction accounting software?

Construction accounting software can streamline your billing cycle, save time and money‌ and help you manage your finances accurately. It also allows you to stay organized and reduces the need for manual data entry by integrating with other systems.

Q: How does integration with other programs benefit construction accounting software?

Integration ensures that financial data moves smoothly between different programs without the need for double-entry. This leads to real-time financial data sharing across platforms, making your job easier and more efficient.

Q: What features should I look for in construction accounting software to improve efficiency?

Look for features such as robust search functions, customized reports, calculation tools, document conversion, automation of updates‌ and user-friendly interfaces. These features can significantly improve the efficiency of your billing system.

Q: How can access levels in construction accounting software improve team management?

By setting different access levels for multiple users, you can control who has access to specific parts of the software. This helps in keeping your team organized and minimizes the chances of unnecessary errors.

Q: Why is user-friendliness important in construction accounting software?

A user-friendly interface ensures that your team can quickly learn how to use the software without extensive training. This helps in maximizing the utilization of the software’s features and reduces the time spent on troubleshooting.

Q: What kind of automation should I expect from construction accounting software?

The software should be able to automate tasks such as calculations, document conversions‌ and system-wide updates. Automation helps in making your billing system more efficient and reduces manual errors.

Q: Can construction accounting software handle different project requirements?

Yes, the software should be flexible enough to handle unique project requirements such as cost variations and negotiations. This ensures that you can adapt to different job elements seamlessly.

Q: How does professional reporting enhance the credibility of my construction business?

Generating clear and professional reports helps in better communication within your team and with clients. It also enhances your business’s image by presenting accurate and well-organized financial information.

Popular options include QuickBooks, Sage Intacct‌ and Acumatica Construction Edition. Each of these has its pros and cons, so it’s essential to evaluate them based on your specific needs and the features they offer.

Q: How can personal recommendations help in choosing the right construction accounting software?

Personal recommendations from colleagues who have experience with different software can provide valuable insights. They can share their firsthand experiences, which can help you make a more informed decision.