{"id":18864,"date":"2014-08-09T10:43:37","date_gmt":"2014-08-09T14:43:37","guid":{"rendered":"https:\/\/foundationsoft.com\/?p=796"},"modified":"2025-03-27T16:47:20","modified_gmt":"2025-03-27T20:47:20","slug":"who-uses-construction-accounting-software","status":"publish","type":"post","link":"https:\/\/www.foundationsoft.com\/learn\/who-uses-construction-accounting-software\/","title":{"rendered":"Who Uses Construction Accounting Software and Why?"},"content":{"rendered":"<p>Many people believe, as the saying goes, that \u201cyou can never please all of the people all of the time.\u201d True as that statement might be, successful construction <strong>business owners<\/strong> never stop trying.<\/p>\n<a target=\"_blank\" href=\"\/job-costing-ultimate-guide\/\" class=\"blog-cta-image\"><img decoding=\"async\" src=\"\/wp-content\/uploads\/2024\/03\/FSL-blog-post-ad-ultimate-guide.png\" alt=\"UG to Job Costing\" title=\"UG to Job Costing\"><\/a>\n<p>When it comes to a\u00a0<a href=\"https:\/\/www.foundationsoft.com\/\">construction accounting system<\/a>, the goal should be to find a system that will help the entire company, not just the accounting office.<\/p>\n<p>Many of today\u2019s construction-specific accounting platforms, fortunately, go far beyond basic bookkeeping functions. They offer companies a complete solution capable of meeting the needs of everyone\u2014from the owner and the <strong>accounting staff<\/strong>\u00a0to field operations and everyone in between.<\/p>\n<p>Even individuals outside the company (CPAs, surety associates and bankers) will benefit from a system that provides detailed reporting of a contractor\u2019s <strong>financial operations<\/strong>.<\/p>\n<p>Not just any <strong>accounting software<\/strong> has the ability to please so many people. Only\u00a0<a href=\"https:\/\/www.foundationsoft.com\/software\/job-costing\/\"><strong>job cost accounting<\/strong> software<\/a>, with its many construction-specific functions and features, will have widespread appeal.<\/p>\n<p>How many businesses like accounting software? In 2023, companies were willing to spend <a href=\"https:\/\/www.globalgrowthinsights.com\/market-reports\/cost-accounting-software-market-102788\">$15.69 billion<\/a> on cost accounting software.<\/p>\n<p>Here are the advantages, broken down by job title and responsibility:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"OwnerPresidentCEO\"><\/span>Owner\/President\/CEO<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Construction business owners<\/strong>\u00a0and executive managers don\u2019t have time to oversee every single transaction added to their accounting system. Nor do they want to. What they do want from an accounting system is:<\/p>\n<ul>\n<li>Timely and accurate job summary that gives them the \u201cbig picture\u201d look at how their jobs are doing. This includes things such as <strong>cash flow<\/strong>, estimated vs. actual, over\/under billing and\u00a0overhead allocation.<\/li>\n<li>Powerful and flexible reporting capabilities, including built-in <strong>accounting standards<\/strong> to make reports and customizable report designers. This way, they can see their data exactly how they want to view it.<\/li>\n<li>Easy-to-analyze graphical data (e.g., dashboard technology) that allows them to see past <strong>financial management<\/strong> strategies and how their company is doing at a glance.<\/li>\n<li><strong>Accounting software solutions<\/strong>\u00a0with <strong>accounting automation<\/strong> that can help manage cash flow and improve profits.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"CFOController\"><\/span>CFO\/Controller<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>As the person responsible for the company\u2019s <strong>accounting functions<\/strong> and procedures, the\u00a0construction CFO\/controller\u00a0wants a system that conforms to the way contractors do business.<\/p>\n<p>Most general business\u00a0<strong>accounting systems<\/strong> are not designed to handle the\u00a0percentage of completion method\u00a0of accounting. This is important because it is the most accepted method for commercial contractors.<\/p>\n<p>Specifically, a CFO\/controller looks for:<\/p>\n<ul>\n<li>An integrated\u00a0job costing system\u00a0capable of tracking detailed job costs while automatically updating the General Ledger.<\/li>\n<li>Easy handling of construction-specific functions such as multiple pay rates,\u00a0<a href=\"https:\/\/www.foundationsoft.com\/software\/payroll\/\">certified payroll<\/a> and\u00a0<a href=\"https:\/\/www.foundationsoft.com\/software\/accounts-receivable\/\">AIA billings<\/a>.<\/li>\n<li>Analysis of <strong>financial transactions<\/strong> and documents. Examples include things like a <strong>balance sheet<\/strong>, <strong>loss statement<\/strong>, <strong>income statement<\/strong>, <strong>cash flow statement<\/strong>, and more.<\/li>\n<li>A big picture of previous <strong>financial decisions<\/strong> and how to proceed with future business strategies.<\/li>\n<li>Complete date sensitivity and audit trail features. They make it easier to compile reports while giving them confidence in the data\u2019s integrity.<\/li>\n<li>A system that minimizes time-consuming tasks such as redundant data entry and spreadsheet reporting. This way, workers have more time for higher-level activities and analyses.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Project_Managers\"><\/span>Project Managers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Construction executives and upper management generally want access to one line per job summary reports.<\/p>\n<p>Project managers want to see as much detail as possible. They want an accounting system that provides:<\/p>\n<ul>\n<li>Reporting and\u00a0job cost breakdowns\u00a0on many levels including total job costs, labor costs per task, costs per cost category, costs per unit of measure and labor productivity.<\/li>\n<li>The ability to link with popular estimating packages or spreadsheet applications to import detailed\u00a0job cost budgets.<\/li>\n<li>Drill-down features, which allow users to click on a report and \u201cdrill down\u201d into details (or even the original transaction) to help explain any discrepancies or trends.<\/li>\n<li>The ability to track equipment costs and usage and maintain inventory control, if needed.<\/li>\n<li>Optional document control\/project management modules for tracking submittals, RFIs, field logs,\u00a0change orders,\u00a0purchase orders,\u00a0subcontracts and more.<\/li>\n<li>An optional scheduling module to help track tasks and resources and keep jobs running smoothly.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Accounting_Staff\"><\/span>Accounting Staff<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Accounting personnel are responsible for day-to-day\u00a0accounting transactions\u00a0and data entry. They need a system that will make their job easier and more efficient.<\/p>\n<p>To help keep productivity high and overhead low, a\u00a0<u>construction accounting system should<\/u>:<\/p>\n<ul>\n<li>Include easy data import capabilities, such as the ability to import\u00a0payroll timecards, for efficient transfer of data from the field.<\/li>\n<li>Automatically calculate pay rates, maintain taxing authorities and provide other time-saving default features for smoother payrolls.<\/li>\n<li>Provide billing flexibility, including integrated AIAs,\u00a0unit price billing and\u00a0time and material billing.<\/li>\n<li>Offers the ability to design invoice templates.<\/li>\n<li>Offer tight integration between modules to help reduce data entry and prevent errors.<\/li>\n<li>Eliminate the headaches of <strong>manual accounting<\/strong> such as doing calculations by hand and editing spreadsheets or data \u201csilos\u201d maintained outside the accounting system.<\/li>\n<li>Offer simple functions to \u201cundo\u201d transactions\u2014but with a complete audit trail.<\/li>\n<li>Be easy to use and intuitive.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"CPAOutside_Accountant\"><\/span>CPA\/Outside Accountant<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>An experienced <strong>construction CPA<\/strong> adds tremendous value to a construction company by providing his\/her expertise in accounting, financial and tax planning, and more. In order to be effective, a CPA must <a href=\"\/software\/cpa-audit-review\/\">review<\/a> his\/her client\u2019s bookkeeping on a regular basis. This process is more productive when a <strong>contractor\u2019s accounting system<\/strong> includes:<\/p>\n<ul>\n<li>The ability to make corrections or re-class items with just a few mouse clicks;<\/li>\n<li>Easy access to <strong>financial reports<\/strong> and pertinent financial data;<\/li>\n<li>Date-sensitive <strong>transactions<\/strong> that allow immediate access to reports from any date range;<\/li>\n<li>Complete audit trails, with each adjustment saved as a separate transaction;<\/li>\n<li>A centralized console where they can easily compile reports and transaction records necessary for the typical audit\/review.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"ITTech_Staff\"><\/span>IT\/Tech Staff<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Not every construction company is large enough, or lucky enough, to have its own IT department. However, even an outside technology consultant will offer a similar perspective when it comes to a contractor\u2019s <strong>cloud-based accounting software<\/strong>.<\/p>\n<p>IT\u2019s wish list is small but comprehensive:<\/p>\n<ul>\n<li>A system that\u2019s built upon a powerful database engine (e.g.,\u00a0<a href=\"https:\/\/www.foundationsoft.com\/software\/microsoft-sql\/\">Microsoft SQL)<\/a>. It offers advantages like compatibility, speed, security, flexibility and scalability.<\/li>\n<\/ul>\n<a target=\"_blank\" href=\"\/demo-video-player\/\" class=\"blog-cta-image\"><img decoding=\"async\" src=\"\/wp-content\/uploads\/2024\/03\/FSL-blog-post-ad-fsl-in-action.png\" alt=\"Watch a Demo\" title=\"Watch a Demo\"><\/a>\n<p>Pleasing everyone is a difficult feat, especially when it comes to new technology. But what if it were possible to find a product that could help the entire company improve productivity, efficiency and profitability?<\/p>\n<p>Many of today\u2019s\u00a0construction accounting systems\u00a0have the power to bring everyone together working toward a common goal: success.<\/p>\n<p><em>*Published in <\/em>Modern Contractor Solutions<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many people believe, as the saying goes, that \u201cyou can never please all of the people all of the time.\u201d True as that statement might be, successful construction business owners never stop trying.<\/p>\n","protected":false},"author":15,"featured_media":10804,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_searchwp_excluded":"","inline_featured_image":false,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-18864","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Who Uses Construction Accounting Software and Why?<\/title>\n<meta name=\"description\" content=\"Discover how modern construction accounting software serves every role - from owners to CPAs. Compare features that drive company-wide efficiency and improve bottom-line results.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.foundationsoft.com\/learn\/who-uses-construction-accounting-software\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Does Your Contractor Accounting Software Work for Everyone on Your Team\" \/>\n<meta property=\"og:description\" content=\"Your contractor accounting software needs to work for everyone on your team, including the C-suite, accounting staff, IT and your outside CPA. 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