Contractors have accounting needs that go beyond simply tracking income and expenses. Between job costs, subcontractors, payroll, materials, change orders, and multiple projects happening at once, having the right technology in place can make a significant difference in how well you manage your business finances.
The right setup should not only keep your books organized—it should help you understand where your money is going, which projects are profitable, and how your business is performing overall.
For some contractors, accounting software alone may provide everything they need. For others, integrating accounting software with a project management application can create a more complete system for managing both the financial and operational sides of the business.
Accounting Software Alone – Best for contractors with simpler project and operational needs
Accounting software provides the financial foundation of your business. It can be used to track income and expenses, manage customers and vendors, reconcile bank and credit card accounts, manage accounts payable and receivable, and produce financial reports.
Depending on the software and how it is configured, contractors may also be able to organize financial information by project to better understand the income, expenses, and profitability associated with individual jobs.
Helpful features may include:
For contractors with relatively straightforward operations, a properly structured accounting system may provide the financial information needed to effectively manage the business.
Accounting Software Integrated with Project Management – Best for contractors with more complex project management needs
As a construction business grows or projects become more complex, accounting software alone may not provide all the tools needed to manage day-to-day project operations.
Project management applications can provide additional tools for areas such as estimating, budgeting, scheduling, change orders, purchase orders, customer management, field operations, and other project-related activities.
When project management and accounting applications integrate effectively, information can flow between the operational and financial sides of the business. This can reduce duplicate data entry and provide greater visibility into how activity in the field affects the company’s financial results.
An integrated system may provide:
The goal is not simply to add more software, as additional applications come with added monthly costs, employee training, and information stored across multiple systems. Instead, the goal is to determine whether additional project management capabilities would improve your processes and provide valuable information that your accounting software alone cannot effectively deliver.
There is no single software setup that works for every contractor. The right approach depends on several factors, including:
Before investing in technology changes, it is important to look beyond a software application’s list of features. How your systems are set up, how they work together, and how consistently your team uses them can be just as important as the software itself.
Start by evaluating your current processes, reporting needs, challenges, and long-term goals. Having the right systems and software in place can provide greater visibility into your business and help you operate with confidence.
If you have questions about your current software, want to make better use of its features, or are considering integrating accounting and project management applications, reach out to us. Our staff is familiar with a variety of accounting and project management software used by contractors, and we would be happy to help you develop a plan that works for your business.
~ the addtech crew
At adding technology, we know you want to focus on what you do best as a contractor. In order to do that, you need a proactive back office crew who has financial expertise in your industry.
The problem is that managing and understanding key financial compliance details for your business is a distraction when you want to spend your time focused on building your business (and our collective future).
We understand that there is an art to what contractors do, and financial worries can disrupt the creative process and quality of work. We know that many contractors struggle with messy books, lack of realtime financial visibility, and the stress of compliance issues. These challenges can lead to frustration, overwhelm, and fear that distracts from their core business.
That's where we come in. We're not just accountants; we're part of your crew. We renovate your books, implement cutting-edge technology, and provide you with the real-time job costing and financial insights you need to make informed decisions. Our services are designed to give you peace of mind, allowing you to focus on what you do best - creating and building.
Here’s how we do it:
Schedule a conversation today, and in the meantime, download the Contractor’s Blueprint for Financial Success: A Step by-Step Guide to Maximizing Profits in Construction.” So you can stop worrying about accounting, technology, and compliance details and be free to hammer out success in the field.
