If your construction company has taken on new clients or you're managing projects that are larger in scope or tax complexity, you might be spending too much time managing the accounting side of your business. Maybe your general accounting software isn't up to the task of cost tracking or managing variable cash flows.

The right accounting software for construction businesses addresses the industry-specific challenges of flexible costs, long-term contracts, and decision-making without real-time financial data.

We'll show you why Intuit QuickBooks construction software is the tool you need to help your construction business run like a well-oiled machine.

Table of Contents

• How construction accounting differs from standard business accounting
• Key accounting workflows in construction businesses
• Common challenges in construction accounting
• What to look for in accounting software for construction businesses
• How accounting software supports construction financial management
• How Intuit QuickBooks supports construction accounting
• Simplify construction accounting as your business grows
• Frequently asked questions

How construction accounting differs from standard business accounting

Construction accounting is a specialized type of accounting that helps construction and general contractors track variable costs and timelines, manage cash flow, and analyze financial data across multiple projects.

These are a few things that set construction accounting apart:

• Construction accounting is project-based, so it tracks labour, material costs, local taxes, and more across multiple projects.
• Unlike general accounting, construction accounting can guide small business and contractor decisions to improve cash flow and encourage growth.
• Construction accounting is more complex than general accounting because it involves managing flexible or long-term contracts, fluctuating costs, and project changes that can affect profitability.
• Construction accounting takes decentralized production into consideration, which makes it easier to track supply and labour costs.

Unlike general accounting, it gives valuable insights that can guide decision-making and encourage financial growth.

Key accounting workflows in construction businesses

Construction accounting workflows are a little different than generalized workflows. An effective workflow includes:

• Job costing: This is a detailed accounting system that lists materials, labour, and overhead costs for a project. You can use the information to create estimates, which ensure the project's profitability.
• Expense tracking: Construction costs can fluctuate over the course of a project, which is why tracking expenses is crucial if you hope to stay in the black.
• Budget management: Easily revisit each project's budget to monitor changes in costs, labour hours, and profit margins.
• Invoicing and payments: Construction projects are often paid out when milestones are hit or specific percentages of the project are completed.

Common challenges in construction accounting

Construction accounting requires specialized methods due to unique challenges:

• Inconsistent cash flow can make it difficult to cover labour and materials costs between project milestones.
• Multiple projects across different timeframes and locations can make it challenging to balance risk and profitability.
• Subcontracting work requires additional management and labour tracking.

What to look for in accounting software for construction businesses

The best accounting software for construction and general contractors includes these features.

Job costing capabilities

Construction projects can span years, and costs can fluctuate widely during that time. You need software that tracks and estimates the costs of materials, as well as the labour hours that go into a project. Having accurate job cost data lets you price and bill construction projects accurately.

With Intuit QuickBooks, you can see which projects are making you money and which are costing you.

Reporting and dashboards

Construction software should seamlessly integrate with accounting and financial management tools so you can quickly see profitability. Intuit QuickBooks uses an all-in-one platform, so you can manage your books, tools, and services from a central location.

Plus, you can customize your dashboard's navigation, create actions for your team, and access a dedicated business feed.

Integration with payroll and project tools

You want the ability to remit and file payroll taxes, convert estimates to invoices, and schedule payroll directly from your accounting and invoicing software.

Since you can integrate QuickBooks Time with QuickBooks Payroll, you'll save yourself the step of manually entering timesheets into payroll for processing.

Ease of use

Construction accounting software should be intuitive and allow you to automate workflows for efficiency. That's why Intuit QuickBooks gives you the ability to customize so much of the software. Save bookmarks, access customized reports, set preferences, and communicate data with your field crews.

How accounting software supports construction financial management

Accounting software lets you access data across all projects in a centralized place, so you can make decisions about labour hours, costs, and project timelines. Here are a few ways it accomplishes this:

• Inventory tracking: Monitor inventory to prevent supply shortfalls, reduce waste, and improve project efficiency.
• Real-time visibility: Catch budget overruns on a job before they affect your bottom line.
• Automated payroll and invoicing: Reduce human error to ensure contractors are paid and invoices are sent on time.
• Improve accuracy: Automated data entry can catch overlooked expenses and reduce the time you spend logging expenses and payments received.

How Intuit QuickBooks supports construction accounting

Intuit QuickBooks includes the tools you need to handle your construction accounting, whether you're just starting or growing your company.

Simplify construction accounting as your business grows

Accounting software for a small construction business should help you build your company as you take on more clients or more complex projects. Intuit QuickBooks construction business software is the tool you need.

Find a plan that's right for your business and explore features that improve efficiency. Whether you're trying to adopt job costing, manage your growing workforce, improve your cash flow, or monitor your company's financials in real time, Intuit QuickBooks construction software has you covered.