{"id":7512,"date":"2017-09-14T10:30:12","date_gmt":"2017-09-14T14:30:12","guid":{"rendered":"https:\/\/foundationsoft.com\/?p=7512"},"modified":"2025-05-05T09:38:33","modified_gmt":"2025-05-05T13:38:33","slug":"simple-guide-construction-accounting-software","status":"publish","type":"post","link":"https:\/\/www.foundationsoft.com\/learn\/simple-guide-construction-accounting-software\/","title":{"rendered":"The Simple Guide to Construction Accounting Software"},"content":{"rendered":"<p><a class=\"gdlr-button medium without-border\" href=\"\/wp-content\/uploads\/articles\/2017-08_FOUNDATION-SimpleGuideToConstructionAccountingSoftware-R2.pdf\" target=\"_self\"  style=\"color:#ffffff; background-color:#000000; \"  >Download PDF<\/a><\/p>\n<p>If you&#8217;re starting to look for <a href=\"https:\/\/www.foundationsoft.com\/learn\/change-accounting-software\/\">accounting software<\/a> for your construction company \u2014 whether this is your first time or you&#8217;ve seen it all before \u2014 the process can be overwhelming. You might have a lot of questions. You might not even be sure\u00a0<em>what\u00a0<\/em>questions to ask. We think the whole thing should be simpler.<\/p>\n<p>So if you don&#8217;t feel quite ready to start the conversation yet, where do you begin? Check out our straightforward, unbiased\u00a0<em><strong>Simple Guide to Construction Accounting Software<\/strong>.<\/em><\/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<div id=\"for-more-box\">\n<h2><span class=\"ez-toc-section\" id=\"Do_you_even_need_new_accounting_software\"><\/span>Do you even need new accounting software?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As you start looking at new accounting software, this is the best question you can ask: <i>Do I even need it?<\/i> After all, the software you really need is the software that\u2019s going to help you be successful.<\/p>\n<p>The truth is, not everyone needs new construction accounting software. Here\u2019s how to find out if you do.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_your_business_needs\"><\/span>What are your business needs?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-8438\" src=\"\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img1-1-300x300.jpg\" alt=\"analysis of construction software needs\" width=\"350\" height=\"350\" srcset=\"https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img1-1-300x300.jpg 300w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img1-1-180x180.jpg 180w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img1-1-150x150.jpg 150w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img1-1-100x100.jpg 100w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img1-1.jpg 350w\" sizes=\"auto, (max-width: 350px) 100vw, 350px\" \/>Begin by asking what your business needs are. That includes what you need to keep growing and what you\u2019ll need in five or 10 years. Imagine you had no accounting software at all. Think through the kinds of jobs you manage and your accounting processes. If you had to buy a system tomorrow, what feature sets would you need?<\/p>\n<ul class=\"checked\">\n<li>Certified payroll?<\/li>\n<li>AIA billing?<\/li>\n<li>Purchase order controls?<\/li>\n<li>WIP and bonding reports?<\/li>\n<li>Cash flow analysis by job?<\/li>\n<\/ul>\n<p>Create a complete list for your company.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_you_using_your_current_software_to_its_potential\"><\/span>Are you using your current software to its potential?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Next, talk with your vendor to see if your current system isn\u2019t already capable of most of what you need, and make sure you\u2019re as effective on it as possible.<\/p>\n<p>If you\u2019re not maximizing your software use, work with your vendor to form a game plan. Get additional training or consulting from your vendor, and consider bringing a trainer on site for several days or multiple trips.<\/p>\n<p>Let them help you form measurable, long-term goals and realistic expectations. Together, you might decide that in six months you want to be using three new features or that in a year you want to be up to 60% of the system\u2019s capabilities.<\/p>\n<p>Then commit to the plan.<\/p>\n<p>If it can do the bulk of what you need, get everything possible out of your current software by using all the resources your vendor has available for you. It\u2019ll be well-worth the investment, and it\u2019ll be the right investment for your company.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_your_current_vendor_supporting_you\"><\/span><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-8439\" src=\"\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img2-1-186x300.jpg\" alt=\"construction accounting process\" width=\"350\" height=\"565\" srcset=\"https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img2-1-186x300.jpg 186w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img2-1-93x150.jpg 93w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img2-1-100x161.jpg 100w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img2-1.jpg 350w\" sizes=\"auto, (max-width: 350px) 100vw, 350px\" \/>Is your current vendor supporting you?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Getting the right software for your business isn\u2019t just a one-time transaction. That\u2019s especially true for something as substantial as accounting software for construction. You\u2019re making a long-term investment, and that requires support from your vendor.<\/p>\n<ul class=\"checked\">\n<li>Are they providing you with tools for success, like continuing education and consulting?<\/li>\n<li>Are they knowledgeable in the software for support issues? Are they the developer or a third-party dealer?<\/li>\n<li>Are you able to get same-day answers and priority support for work-stopping issues?<\/li>\n<li>Are you getting the program updates you need to stay compliant in your jurisdictions?<\/li>\n<\/ul>\n<p>Your software can hit all the right technology requirements \u2014 but you should always be comfortable with who you\u2019re working with.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Should_you_stay_or_should_you_go\"><\/span>Should you stay, or should you go?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There\u2019s no perfect out-of-the-box solution, but if 90% of your functions can be performed without spreadsheets and manual workarounds, it might make more sense for you to stay put with your current vendor.<\/p>\n<p>On the other hand, if your current system can\u2019t do half of what you need, or if you can\u2019t get the support you need, don\u2019t pound your square company through a round hole. It\u2019s probably time to move on.<\/p>\n<p>Take the list you\u2019ve made, and begin talking to other vendors. They can help you identify a realistic game plan for what transition and implementation might look like for your company, given your time, team and budget.<\/p>\n<p><a class=\"gdlr-button medium\" href=\"https:\/\/www.foundationsoft.com\/software\/\" target=\"_blank\"  style=\"color:#ffffff; background-color:#000000; border-color:#999999; \"  >Read more about whether you need construction accounting software \u00bb<\/a><\/p>\n<p><a class=\"gdlr-button medium\" href=\"\/learn\/switch-quickbooks-construction-software\/\" target=\"_self\"  style=\"color:#ffffff; background-color:#000000; border-color:#999999; \"  >Learn more about switching from QuickBooks\u00ae for construction software \u00bb<\/a><\/p>\n<\/div>\n<div id=\"for-more-box\">\n<h2><span class=\"ez-toc-section\" id=\"What_is_construction_accounting_software\"><\/span>What <em>is<\/em> construction accounting software?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>You&#8217;ve heard the phrase. You may not have always heard it used the same way. Here\u2019s a compact definition we think is pretty good: <i><a href=\"https:\/\/www.foundationsoft.com\/\">construction accounting software<\/a> is an integrated set of tools contractors use to track financial data to each project they manage.<\/i><\/p>\n<p>That might just sound like accounting software in general, but it also introduces a critical component for successful construction accounting \u2014 <strong>integrated job costing<\/strong> that ties out to the general ledger. Let&#8217;s look closer at that.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Whats_%E2%80%9Cconstruction%E2%80%9D_about_accounting_software\"><\/span>What\u2019s <i>&#8220;construction&#8221;<\/i> about accounting software?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For most industries, accounting is accounting is accounting, whether you\u2019re a bike shop or a bakery. Accounting software lets you see how the <i>whole company<\/i> is doing as one big profit center.<\/p>\n<p>Construction is unique, because each of your projects is a distinct profit center, meaning it has its own revenue, expenses and payroll. The more your business grows, the more jobs you have to juggle, the more important it is to know how profitable <i>each job <\/i>is and <i>why.<\/i><\/p>\n<p>That\u2019s what job costing is all about. Small business software offers some workarounds, like using additional G\/L accounts or generic categories \u2014 but construction accounting software lets you track your costs and revenues to the job according to precise cost classifications, all without messing with your chart of accounts. It produces detailed reports that tie out to your G\/L, so you can see where your profits are coming from, how your productivity is paced, where you can improve and more.<\/p>\n<p>Of course construction accounting software will also offer other special features for contractors, like:<\/p>\n<ul class=\"checked\">\n<li>Certified payroll<\/li>\n<li>Multiple wage and fringe rates<\/li>\n<li>AIA, unit price and percent complete billing<\/li>\n<li>Over\/under and WIP reports<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Whats_%E2%80%9Caccounting%E2%80%9D_about_construction_software\"><\/span>What\u2019s <i>&#8220;accounting&#8221;<\/i> about construction software?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There\u2019s construction software that tracks financials, and then there\u2019s construction accounting software. What\u2019s the difference? It\u2019s really all about whether job costing is fully integrated or whether it\u2019s just an add-on.<\/p>\n<p>Think of how your basic accounting software works. It\u2019s designed so for that day-to-day transactions, you touch your G\/L a minimal amount. Instead, everything automatically flows from A\/P, A\/R and payroll into your G\/L. That\u2019s just how job costing should work too. As much as possible, you shouldn\u2019t need to do additional entry into a job journal once you\u2019ve entered an invoice or a timecard.<\/p>\n<p>From a business standpoint, it&#8217;s about more than just saving time \u2014 these applications have a distinct accounting advantage over software add-ons for job costing or construction financials. A fully integrated job cost accounting system helps ensure that job costing and the G\/L should always reconcile <i>to the penny.<\/i> That\u2019s why so many construction CPAs recommend them.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_should_construction_accounting_software_include\"><\/span>What should construction accounting software include?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-8440\" src=\"\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img4-1-150x300.jpg\" alt=\"construction accounting software components needed\" width=\"350\" height=\"701\" srcset=\"https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img4-1-150x300.jpg 150w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img4-1-75x150.jpg 75w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img4-1-100x200.jpg 100w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img4-1.jpg 350w\" sizes=\"auto, (max-width: 350px) 100vw, 350px\" \/>What your accounting software should contain depends on your company\u2019s needs and goals, your processes, and the software you already have.<\/p>\n<p>That said, there are at least five features you should look for in a truly integrated construction accounting application:<\/p>\n<p style=\"padding-left: 30px;\"><b>1. Construction payroll<\/b>, like print and electronic certified payroll for federal and state agencies, EEO minority compliance, multi-state and multi-locality, automated fringes, and unions.<\/p>\n<p style=\"padding-left: 30px;\"><b>2. Construction billing<\/b>, including the ability to hold and pay retainage, as well as track retainage on aging reports. You may also need AIA documents, unit-price progress billing forms, time and materials markups, and service billing features.<\/p>\n<p style=\"padding-left: 30px;\"><b>3. Purchasing and subcontract controls<\/b> to determine what\u2019s been invoiced and what committed costs remain outstanding, plus prevent overbilling on committed costs.<\/p>\n<p style=\"padding-left: 30px;\"><b>4. G\/L reports by job<\/b>, from income statements to cash flow analysis, automatically generated from your system without spreadsheets or extra work from you.<\/p>\n<p style=\"padding-left: 30px;\"><b>5. Job reports<\/b>, like over\/under billing, estimated vs. actual and production reporting, just to name a few. The ability to design your own construction reports \u2014 without spreadsheets or special computer skills \u2014 is also a major benefit.<\/p>\n<p>Construction accounting software is all about taking the tools contractors need for managing jobs effectively and tying them into a strong core of accounting. \u00a0Whatever it does should be able to align with your business processes, and it should be as integrated and automated as possible to reduce manual work, spreadsheets and reentry, even if you can\u2019t eliminate all of it.<\/p>\n<p>Look for the system that fits <i>you.<\/i><\/p>\n<p><a class=\"gdlr-button medium\" href=\"https:\/\/www.foundationsoft.com\/software\" target=\"_blank\"  style=\"color:#ffffff; background-color:#000000; border-color:#999999; \"  >Read more about what construction software really is \u00bb<\/a><\/p>\n<\/div>\n<div id=\"for-more-box\">\n<h2><span class=\"ez-toc-section\" id=\"Which_is_better_accounting_or_all-in-one\"><\/span>Which is better: accounting or all-in-one?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Each type of software has its strengths and weaknesses. So what\u2019s the best way to go \u2014 a dedicated accounting program, or an all-in-one with accounting features?<\/p>\n<h3><span class=\"ez-toc-section\" id=\"All-in-one\"><\/span>All-in-one<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>All-in-one ERPs can be enormously powerful as long as they truly integrate data across the system and have the right people and processes to use them successfully. Because they don\u2019t major in any one system area, however, they can end up running \u201ca mile wide and an inch deep.\u201d<\/p>\n<p>For example, an accounting-focused ERP might have estimating features that don\u2019t go as deep as you need. Or, a project management ERP could have job cost tracking that doesn\u2019t necessarily tie out to your financials.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Best-of-breed\"><\/span>Best-of-breed<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A best-of-breed accounting system will be able to provide greater feature depth by specializing. A vendor who stays active in developing their best-of-breed product is able to focus on addressing the latest needs in construction accounting because it\u2019s their only priority.<\/p>\n<p>The trade-off is that you\u2019ll need other software to support other business areas, like estimating and takeoff. That said, you might not have the same estimating requirements as a residential contractor, GC, specialty trade contractor, etc. So best-of-breed systems with good third-party integration give you the opportunity to select other best-of-breeds that truly fit your company \u2014 or to stay with the systems you love.<\/p>\n<p>Talk with best-of-breed vendors to see what options they recommend for pairing their application with other software to create a unified solution that works for you. Ask about integration, whether that\u2019s an API or a simple import\/export compatibility.<\/p>\n<p><a class=\"gdlr-button medium\" href=\"\/learn\/specialized-integrated-construction-software\/\" target=\"_self\"  style=\"color:#ffffff; background-color:#000000; border-color:#999999; \"  >Read more about best-of-breed and all-in-one systems \u00bb<\/a><\/p>\n<\/div>\n<div id=\"for-more-box\">\n<h2><span class=\"ez-toc-section\" id=\"Whats_SaaS_Whats_Cloud_Whats_On-Premise_Whats_better\"><\/span>What\u2019s SaaS? What\u2019s Cloud? What\u2019s On-Premise? What\u2019s better?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <b>cloud<\/b> simply refers to software that\u2019s no longer tethered to an <b>on-premise<\/b> computer in your office. If you can access it on almost any device from almost any location, that\u2019s because it\u2019s on the cloud, whether it\u2019s a mobile app, browser-based tool or SaaS (\u201csoftware-as-a-service\u201d) application.<\/p>\n<p><b>SaaS<\/b> is a model of delivering software with the cloud. Instead of buying software up front and installing it on your hardware, SaaS users pay a monthly fee to access their software over the Internet from the vendor\u2019s servers. The vendor hosts, secures, backs up, updates and maintains it all as service. The benefits include:<\/p>\n<ul class=\"checked\">\n<li><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-8441\" src=\"\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img5-1-300x300.jpg\" alt=\"cloud based construction accounting software\" width=\"350\" height=\"350\" srcset=\"https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img5-1-300x300.jpg 300w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img5-1-180x180.jpg 180w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img5-1-150x150.jpg 150w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img5-1-100x100.jpg 100w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img5-1.jpg 350w\" sizes=\"auto, (max-width: 350px) 100vw, 350px\" \/>Anytime, anywhere access<\/li>\n<li>Automatic backups and updates<\/li>\n<li>Professional data security<\/li>\n<li>Minimal hardware requirements<\/li>\n<li>Low start-up cost<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Before_you_move_onto_the_cloud\"><\/span>Before you move onto the cloud<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>That said, cloud software isn\u2019t a silver bullet. \u00a0Any outstanding issues \u2014 from bad financial data to ineffective reporting processes \u2014 can follow a contractor right to the cloud. Additionally, you\u2019d want to consider whether you\u2019ve already invested in expensive IT infrastructure or whether you\u2019ll still need to maintain internal servers for your other systems.<\/p>\n<p>You should always make the move that makes sense for your company <i>when <\/i>it makes sense for your company. SaaS gives healthy companies an edge by leveraging what\u2019s already working, helping them be more efficient with lower cost barriers. Having the right people and processes in place\u00a0<i>first<\/i>\u00a0\u2014 and aligning your goals and resources \u2014 is essential for any technology.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Risks_on_the_cloud_%E2%80%94_and_off\"><\/span><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-8442\" src=\"\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img6-1-132x300.jpg\" alt=\"cloud based construction accounting software security\" width=\"215\" height=\"489\" srcset=\"https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img6-1-132x300.jpg 132w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img6-1-66x150.jpg 66w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img6-1-100x227.jpg 100w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img6-1.jpg 215w\" sizes=\"auto, (max-width: 215px) 100vw, 215px\" \/>Risks on the cloud \u2014 and off<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Is it really safe to put your accounting data on the cloud? Answer: it absolutely <i>can<\/i> be, with reasonable and responsible measures to protect yourself. Data security begins at home.<\/p>\n<p>Vendors use industry-standard encryption to protect your data both \u201cat rest\u201d and \u201cin flight,\u201d as well as secure, disaster-resistant facilities to house your data. However, something as simple as a weak password or unsafe Web browsing can still put your company at serious risk. Clicking on one wrong email can open your entire on-premise network to hackers.<\/p>\n<p>Cyber threats are real for all businesses. The good news with SaaS is that where data lives with your vendor, you can be assured of professional-grade security and industry best practices.<\/p>\n<p>Whether you go cloud or on-premise, however, it\u2019s essential that you have security policies and procedures in place to protect your servers and your devices on the user end. This should include:<\/p>\n<ul class=\"checked\">\n<li>Auditing and restricting access rights<\/li>\n<li>Educating employees about cybersecurity risks<\/li>\n<li>Internet-use and mobile-device policies<\/li>\n<li>Reporting and response procedures<\/li>\n<li>Regularly scheduled policy reviews<\/li>\n<\/ul>\n<p><a class=\"gdlr-button medium\" href=\"\/learn\/\" target=\"_blank\"  style=\"color:#ffffff; background-color:#000000; border-color:#999999; \"  >Read more about mobile and cloud security for construction accounting \u00bb<\/a><\/p>\n<\/div>\n<div id=\"for-more-box\">\n<h2><span class=\"ez-toc-section\" id=\"How_much_does_construction_accounting_software_cost\"><\/span>How much does construction accounting software cost?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The price of construction accounting software isn\u2019t a trade secret. It simply depends on:<\/p>\n<ul class=\"checked\">\n<li>system complexity<\/li>\n<li>business goals<\/li>\n<li>modules or feature sets<\/li>\n<li>and number of users<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Complexity_and_business_goals\"><\/span>Complexity and business goals<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>We\u2019ve seen software can range from a best-of-breed base job cost accounting system to a large all-in-one ERP package. There are applications designed for companies with annual revenue under $1 million, between $3 and 30 million, $50 to $150 million \u2014 even over $500 million!<\/p>\n<p>Businesses as different as that will be looking for very different applications to accomplish very different things, so of course the cost will be different between them.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Modules_and_users\"><\/span>Modules and users<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For on-premise, a best-of-breed system with job costing, accounting, specialized billing and construction payroll can run around $2,000 to $50,000 plus. A cloud-based system might be between a couple hundred and several thousand dollars a month.<\/p>\n<p>Why such a range still? Cost is affected by additional modules like equipment management, inventory and document imaging, as well as project management features.<\/p>\n<p>Price is also determined by your number of \u201cconcurrent users\u201d \u2014 in other words, how many of your employees will be working on the application at one time. Your number of users helps gauge the kind of training and support resources your company will need.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There\u2019s no one price tag for everyone. Figuring out how much construction accounting software costs is as simple as a conversation. By finding out<\/p>\n<ul class=\"checked\">\n<li>what you do<\/li>\n<li>what your business looks like<\/li>\n<li>and what you want to do<\/li>\n<\/ul>\n<p>a vendor can help make sure you not only get the right price but also get fitted with the right software for your success.<\/p>\n<p><a class=\"gdlr-button medium\" href=\"\/learn\/construction-accounting-software-costs\/\" target=\"_blank\"  style=\"color:#ffffff; background-color:#000000; border-color:#999999; \"  >Read more about the cost of construction accounting software \u00bb<\/a><\/p>\n<\/div>\n<div id=\"for-more-box\">\n<h2><span class=\"ez-toc-section\" id=\"How_do_you_select_construction_accounting_software\"><\/span>How do you select construction accounting software?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There may be a number of really good choices for your company, and Foundation Software may or may not be one of them. So how do you get from having a starting idea of what you need to landing with the right software and the right vendor?<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Research_your_company\"><\/span><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-8443\" src=\"\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img8-1-92x300.jpg\" alt=\"how to select your construction accounting software\" width=\"350\" height=\"1139\" srcset=\"https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img8-1-92x300.jpg 92w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img8-1-315x1024.jpg 315w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img8-1-46x150.jpg 46w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img8-1-100x325.jpg 100w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img8-1.jpg 350w\" sizes=\"auto, (max-width: 350px) 100vw, 350px\" \/>1. Research your company<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Interview key personnel who will be directly affected by the new system, from end-users to project managers who require particular reports to your IT support. Create a needs list and a separate \u201cwish list.\u201d<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Research_software_and_vendors\"><\/span>2. Research software and vendors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Don\u2019t just settle for websites and marketing materials \u2014 talk directly with vendors, and ask questions. Pretend you\u2019re interviewing them for a job \u2014 <i>because you are.<\/i> Do they ask questions about your business? Are they frank about the system\u2019s strengths and limitations?<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_See_a_live_demo\"><\/span>3. See a live demo<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Schedule a personalized demo for each system. Videos are a helpful start, but nothing beats seeing the system work live with a sales rep on hand to answer your toughest questions. This gives you a chance to \u201ctry on\u201d the vendor\u2019s personnel and get a peek into their company and culture.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Ask_the_sales_rep_to_show_you_how\"><\/span>4. Ask the sales rep to <i>show you how<\/i><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Sales reps are used to giving the same presentation over and over, so don\u2019t be afraid to interrupt and make it personal to your needs. Make them show you the processes you\u2019re curious about: \u201cHow did you get that report?\u201d \u201cWill it let me go back to that AIA?\u201d \u201cWhat if I need to make certified payroll corrections?\u201d \u201cWhat if my engineer works a job in another state?\u201d \u201cWhat if . . . ?\u201d<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Check_user_references\"><\/span>5. Check user references<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Get as many as you can and follow up on <em>at least<\/em> three.<strong>\u00a0<\/strong>Ask the vendor for similar-size contractors in your region who perform similar projects as you. They might not be photocopies of your business, but just a handful of user companies who are willing to go out of their way to help you can give you a good sense of what your experience might be. This is your chance to see how well a vendor supports their product in the real world after the ink has dried.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"6_Check_professional_references\"><\/span>6. Check professional references<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ask for a list of construction-focused CPAs who work with the vendor. They\u2019ll have a unique, vital perspective on how sound an accounting system is and how usable it is for an outside CPA coming in to help.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"7_Be_wary_of_%E2%80%9Ctrash_talk%E2%80%9D\"><\/span>7. Be wary of \u201ctrash talk\u201d<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Friendly competition makes us all better, but if a vendor has more to say about why you <i>shouldn\u2019t <\/i>buy another product than why you <i>should <\/i>buy theirs, that might raise a red flag.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"8_Assess_their_support_services\"><\/span>8. Assess their support services<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Look at <em>all\u00a0<\/em>of their support services. In addition to support hours and average response time, find out what they offer for training options, continuing education opportunities, free online resources and additional consulting if you need it down the road.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"9_See_what_else_they_offer\"><\/span>9. See what else they offer<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If you\u2019re going to enter a long-term relationship with a vendor, are there any companion services they offer \u2014 such as cloud hosting, payroll processing or bookkeeping?<\/p>\n<h3><span class=\"ez-toc-section\" id=\"10_Ask_them_for_recommendations\"><\/span>10. Ask <i>them<\/i> for recommendations<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\u201cIf we decided not to go with you, who would you recommend we talk to next?\u201d Not everyone knows how to answer this question \u2014 but vendors who really have their ear to the industry and to your needs will be able to give an honest answer.<\/p>\n<p><a class=\"gdlr-button medium\" href=\"\/learn\/\" target=\"_blank\"  style=\"color:#ffffff; background-color:#000000; border-color:#999999; \"  >Read more about how to choose the right construction accounting software \u00bb<\/a><\/p>\n<\/div>\n<div id=\"for-more-box\">\n<h2><span class=\"ez-toc-section\" id=\"Whens_the_best_time_to_change_accounting_software\"><\/span>When\u2019s the best time to change accounting software?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The upshot is, if getting new construction accounting software\u00a0is the right move for your business, there\u2019s no single right time to do it \u2014 but certain times can make it easier\u00a0on\u00a0you.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Do_you_have_to_start_on_January_1\"><\/span><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-8444 size-full\" src=\"\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img9.jpg\" alt=\"the best time to change construction accounting software systems\" width=\"300\" height=\"300\" srcset=\"https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img9.jpg 300w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img9-180x180.jpg 180w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img9-150x150.jpg 150w, https:\/\/www.foundationsoft.com\/wp-content\/uploads\/2017\/09\/2017-09_FOUNDATION-SimpleGuide-Img9-100x100.jpg 100w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Do you have to start on January 1?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There are several advantages to starting January 1, but it\u2019s not a requirement. \u00a0That\u2019s when most companies\u2019 fiscal year begins, which means they won\u2019t have to carry over part of the year\u2019s finances as a lump sum. At year-end, they\u2019ll have 12 months of detailed history all in one place.<\/p>\n<p>There\u2019s also no payroll history to carry over, because payroll reporting always restarts after year-end. That\u2019s part of the reason why businesses often see a January 1 changeover as the cleanest. However, as we\u2019ll see, contractors can also make a clean transition\u00a0with\u00a0their books at other points on the calendar.<\/p>\n<p>Finally, for many contractors, winter is the slowest time of year for financial data coming in from projects. That said, holidays and year-end close can often tie up key staff ahead of a January 1 transition.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Whats_the_best_time_of_year_to_change\"><\/span>What\u2019s the best time of year to change?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Look at the ebbs and flows of your business \u2014 including your fiscal calendar, your staff\u00a0schedules\u00a0and your project cycles. Winter might be a less hectic time for a seasonal contractor, while a firm in the south might have projects year-round. They should probably choose different times to switch.<\/p>\n<p>Beside January 1, dates like April 1 (Q2) or October 1 (Q4) can also be great targets. They\u2019re often outside the heart of\u00a0busy\u00a0season and still provide a clean tie-out to your quarter before moving your data. With October 1 you have three full months to prepare for a smooth year-end \u2014 plus, because it\u2019s a well-kept secret, vendors often have more support resources available than at year-end.<\/p>\n<p>Don\u2019t feel locked into one date until you commit to a game plan with your vendor and CPA. The important thing is to figure out when you\u2019re going to be ready and how much time you need to make the transition.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_long_does_it_take\"><\/span>How long does it take?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In an ideal world, implementing a base job cost accounting system could take three to four months from purchase. A large ERP could take six months to a year. But, that depends on several factors. Count on more time for:<\/p>\n<ul class=\"checked\">\n<li>larger companies<\/li>\n<li>additional modules<\/li>\n<li>complex payroll or reporting requirements<\/li>\n<li>adopting new job costing<\/li>\n<li>introducing new controls (like inventory management)<\/li>\n<li>bookkeeping that needs to be cleaned up<\/li>\n<li>variables with your staff, like availability and experience<\/li>\n<\/ul>\n<p>Remember, no results are typical. Your business really is unique. Making the change work includes training, testing, making adjustments and getting buy-in from the field. It\u2019s a long-term commitment, and your vendor will help you along the way.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"When_is_the_best_time_to_buy_accounting_software\"><\/span>When is the best time to buy accounting software?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Even if you estimate you\u2019re a year or more out from when you&#8217;ll change accounting software, don\u2019t wait to start the process. Begin the conversations as early as possible to see\u00a0if you even need new software, what each vendor can offer and how you can prepare for a successful implementation.<\/p>\n<p>Whenever you decide to buy, leave enough time to prepare and implement successfully. Don\u2019t hurry through the process. Getting to know your vendor, taking advantage of all their available resources, and knowing what an application can and can\u2019t do is critical for thriving long-term with the right tools.<\/p>\n<p><a class=\"gdlr-button medium\" href=\"\/learn\/change-accounting-software\/\" target=\"_blank\"  style=\"color:#ffffff; background-color:#000000; border-color:#999999; \"  >Read more about when to implement new accounting software \u00bb<\/a><\/p>\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<\/div>\n<h2><span class=\"ez-toc-section\" id=\"About_Foundation_Software\"><\/span>About Foundation Software<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Foundation Software is the developer of FOUNDATION\u00ae \u2014 a fully integrated job cost accounting application with project management and mobile tools for cloud or on-premise. Get scalable job cost reporting, automatic certified payroll, specialized billing, document management and more construction-specific features with one best-of-breed system. Our sales team will work with you to help you select software that fits your business.<\/p>\n<div id=\"yellow-cta\"><a class=\"gdlr-button large without-border\" href=\"#watch-demo-video\" target=\"_self\"  style=\"color:#ffffff; background-color:#000000; \"  >Start with a construction accounting product tour \u00bb<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>We believe that finding the best construction accounting software should be straightforward and unbiased. That&#8217;s why we created the Simple Guide for you.<\/p>\n","protected":false},"author":17,"featured_media":8355,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_searchwp_excluded":"","inline_featured_image":false,"footnotes":""},"categories":[9,23],"tags":[14,18],"class_list":["post-7512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-selecting-software","tag-job-costing","tag-saas-cloud"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Construction Accounting Software: A Practical Guide<\/title>\n<meta name=\"description\" content=\"Choose the right construction accounting software with our unbiased guide to key features, implementation considerations, and ROI calculations tailored to your business size.\" \/>\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\/simple-guide-construction-accounting-software\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Simple Guide to Construction Accounting Software\" \/>\n<meta property=\"og:description\" content=\"We believe that finding the best construction accounting software should be straightforward and unbiased. 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