Running a construction business can be both laborious and stressful. Given the industry’s severe workforce and supply burdens, it is more vital than ever that construction managers have appropriate construction accounting software in place to ensure accounting compliance.
Many businesses find that having the right construction company accounting software – coupled with effective accounting practices – increases productivity and helps cut back on unnecessary expenses. That said, there is also no shortage of construction company accounting software to purchase, and it begs the question: What is the best one for you and your business? Here’s a look at some of the most popular models and an examination of their various pros and cons.
NetSuite for the Construction industry
Pros:
- NetSuite works well for many company sizes and industries.
- This software is customizable and scalable.
- Workflow and people management are handled internally, so external HR software is not needed. NetSuite has its own internal people management tool, SuitePeople.
- NetSuite offers different packages suited for various types of businesses and of different sizes.
Cons:
- Although there are different packages, NetSuite’s baseline is $999 a month; this can be a bit steep for a smaller-sized company that doesn’t have the funds and isn’t expanding anytime soon. For businesses that plan to scale, NetSuite is a suitable option.
- Technical customer support is included but highly criticized by customers. If you are going to implement NetSuite, it is best to work with a NetSuite consultant who can help and advise you on the best course of action and work with you through your business model, rather than to rely on customer support that may not note the ins and outs of your business.
QuickBooks for the Construction industry
Pros:
- Quickbooks for Construction builds upon its world-leading services and customizes construction accounting software for the construction industry.
- It easily integrates with QuickBooks accounting software, and individuals already familiar with QuickBooks will know how the program works.
- It contains many valuable features, including automating accounting tasks, managing job costs, and maintaining financial compliance.
- It allows for easy subcontractor management.
Cons:
- It has a steep learning curve, so you will be challenged if your bookkeeper is relatively new. As such, it may be advisable to outsource your accounting software set up to a firm that understands the accounting needs of construction businesses,
- Quickbooks only allows five users to use the system; which may make it less useful for larger firms, thus posing real challenges for these firms.
Viewpoint for the Construction industry
Pros:
- Viewpoint contains a massive suite of functions, including construction and project management, job costing, and more. As such, Viewpoint is much more than just accounting software.
- It easily allows you to track a job’s progress, costs, and cost overruns.
- It contains specific financing options, which may enable you to manage your debt better and help keep your costs down.
- It contains a variety of functions that enable easy collaboration with staff that is on-site.
- Data projections and visualizations can allow any user to grasp the costs of a project better.
Cons:
- Since it does more than accounting, you may wind up paying for more than you need.
- Some users expressed concerns over its interfaces and the overall lack of customizability available in other programs.
- Must purchase a license for every individual, increasing costs.
Getting Guided Assistance
Adhering to GAAP guidelines is important for every industry. Your accounting software setup should make it easier for your business to comply and minimize tax-related stressors. Choosing the correct software for your business needs is crucial to setting up a healthy accounting division within your business. If you need assistance finding the software best suited to your construction company, one of our CPAs can offer you guidance.
At Fusion CPA, we can help you identify the best ways to save money on your construction accounting software and provide you with guided assistance in the fields of accounting and tax planning. We can also help build a growth plan for your business. Click the button below to schedule a free discovery call.
This blog article is not intended to be the rendering of legal, accounting, tax advice, or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.
