The Value of Investing in Construction Accounting Software

Investing in construction accounting software is extremely beneficial for a construction company. No matter the role or responsibilities in a company, using technology to track financials can be a valuable tool in simplifying your team’s daily operations.

The impact of these solutions isn’t going unnoticed. According to a recent survey by Research.com, 25% of US construction firms aim to increase their investments in construction industry accounting software platforms because they’re seeing the return on investment. Budgets are getting more consistent, and time spent on administrative processes is being reduced.

By adopting construction accounting software, you can help your construction business streamline communication, enhance financial visibility and increase efficiency on the jobsite.

Whether you’re a controller or a stakeholder, let us walk you through the various ways that the best construction accounting software can be leveraged as a powerful asset.

Key Takeaways for Construction Professionals:

• Construction accounting software can be used to drive productivity, profitability, and sustainable growth in the competitive industry.
• The various functionalities of construction accounting software will help you save effort, save time and save money.
• Construction accounting software streamlines the budgeting, reporting, and recordkeeping aspects with financial management tools for construction projects.
• Investing in construction accounting software can offer numerous benefits for your company like customizable reporting, document management and automated expense tracking.

How Does Construction Accounting Software Help Your Business?

Construction accounting software yields immense worth by enhancing efficiency, accuracy and decision-making capabilities. It can be used as a tool to empower professionals at every level to drive productivity, profitability, and sustainable growth in the construction sector. Embracing construction accounting software will help each role thrive in today’s digital era.

Accountants/Bookkeepers

As an accountant or bookkeeper, you’re responsible for:

• Entering financial transactions
• Reconciling accounts
• Generating financial reports
• Ensuring compliance with accounting standards and regulations

With construction accounting software solutions, the accounting team can automate invoicing, construction payroll, and expense tracking. Most construction accounting software is also equipped with the ability to generate custom reports and store documents for a centralized audit trail, allowing you to drill down and track every expense at a project level and at a company level.

Project Managers

Project managers can track project budgets, monitor expenses, allocate resources, and analyze project profitability with construction accounting software. As a project manager, you need a software that is able to create project estimates, manage change orders, and generate progress reports.

This will help you keep stakeholders informed about project financials. There is also financial reporting, and analytic tools built into the software to monitor a project’s progress.

Procurement/Purchasing Managers

When you’re in the role of a procurement or purchasing manager, you want to use construction accounting software to manage the procurement process.

This includes using features to track purchase orders, monitor vendor payments and maintain supplier contracts. You’ll rely on the software’s ability to customize approvable workflows and automate notifications to ensure timely and cost-effective procurement of materials, inventory and services.

Administrative Staff

For administrative staff members, construction accounting software can automate the process and perform various operational tasks such as:

• Invoice processing
• Payroll management
• Accounts payable/receivable management
• General ledger maintenance
• Day-to-day financial transactions
• Expense data entry

Construction accounting software is a powerful tool that will help speed up the payment cycle and manage financial operations.

Controller

As a controller, you’re looking for a financial tracking tool to help monitor budgets, expenses, and cash flow across multiple projects and departments.

Construction accounting software makes it easy to transfer data and offers real-time visibility into a project’s financial health. The customizable reporting capabilities can generate detailed financial reports, variance analyses, and forecasts tailored to your company. It also serves as a way to ensure compliance with a comprehensive audit trail functionality.

Project Clerk

Looking at the role of a project clerk in a construction company, you would need a solution that facilitates communication and coordination within project teams. The automated document management functionalities, integration capabilities, and customizable reporting capabilities will help automate workflows and streamline administrative processes.

Site Clerk

For your role as a site clerk, construction accounting software can help manage on-site operations. Some construction accounting software is cloud-based, meaning it is accessible via mobile device, which can help you access project data, submit reports, and communicate with the office from anywhere on the construction site.

Additionally, you would also find the document management features helpful as it allows you to store and retrieve important project documents for easy access to critical information.

Contractor

When you’re a contractor, construction-specific accounting software is extremely important. With the ability to create and manage project budgets, track expenses, and monitor project progress in real time, you can increase profitability. The customizable reporting feature will be beneficial for you as well to provide insights into:

• Project profitability
• Cash flow projections
• Resource utilization

The document management feature can easily store and share contracts, permits and change orders, increasing collaboration on the jobsite.

Why Do You Need Construction Accounting Software?

No matter your role in a construction company, you want to save effort, save time and save money. The various functionalities of construction accounting software will help you do all three as it streamlines the budgeting, reporting and recordkeeping aspects of financial management.

1. Save Effort — With construction accounting software automating processes, your team can drill down into costs quickly and easily, simplifying the complexities of construction financial management.
   1. Using historical financial data, accurate past reports and former project expenses in construction accounting software, they can create actual construction budgets with up to date information at their fingertips.
2. Save Time — Construction accounting software can help you save time by consolidating financial data, so information only needs to be entered once. With your construction business financials and data in one place, the software will filter the data to produce automated reports in multiple formats.
   1. This automated reporting helps companies maintain compliance by completing required forms and creates a secure audit trail for mandatory documents, allowing you to share reports with key stakeholders and relevant agencies.
3. Save Money — Additionally, construction accounting software can help you save money. By using software with job costing capabilities, you can monitor spending and drill down into expenses in real time to catch costly mistakes or additional costs before they cause trouble.
   1. Using software to categorize and record all expenses will assist in determining profit margins, future budgets and cash flow.

Improve Your Construction Accounting with FOUNDATION®

Investing in construction accounting software is a strategic move that holds immense value for construction companies. It can revolutionize how you manage finances, projects, and overall operations. Construction accounting software is specifically designed to address the unique challenges and requirements of the entire construction industry, offering a range of benefits for the user.

By automating tasks such as invoicing, payroll management and expense tracking, construction accounting software enables you to work more efficiently, reducing the time and effort required for routine tasks and helping to save money.

With the ability to effectively monitor project budgets, track expenses, and allocate resources, you can earn real-time insights into projects to ensure they are completed on time and within budget.

Most importantly, construction accounting software promotes collaboration and communication across different departments within a construction company. By connecting your office and field teams with a centralized platform for storing and accessing financial data, you can improve transparency.

Investing in construction accounting software, like FOUNDATION, can offer numerous benefits for your company. With customizable reporting, document management, and automated expense tracking, we can help your company improve efficiency and accuracy.