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5 Tips for Selecting the Best Construction Accounting Software for Subcontractors

Cloud-based accounting software is a powerful and flexible option designed for construction subcontractor businesses like yours.

As your subcontracting company evolves, your business infrastructure needs to keep up with it. These days, there are so many technology options for accounting that can complicate the process of choosing the right software.

For example, your roofing, plumbing, or landscaping business must consider multiple factors when implementing new accounting software. Does it align with your company’s current and future needs? Will you receive migration assistance? Will it help your team make better business decisions?

Fortunately, by organizing your financial data with the right tools, you can make these decisions quickly and more confidently. Let’s explore five factors to consider when selecting construction accounting software for subcontractors.

1. Align software features to your subcontracting company’s needs

Too often construction subcontractors purchase new software only to learn later that only a few of the features can actually support their team. When evaluating your accounting software options, it’s important to assess how the platform will directly improve your business operations.

Easily turn estimates into invoices

Subcontractors spend hours every day on the tedious process of invoicing and billing their clients. Automated invoicing features within accounting software allow your subcontractor business to keep track of paid and overdue accounts and schedule invoices for recurring accounts.

More importantly, you need a tool that will help you clearly state your scope of work, deliverables, due dates, and costs to the client. With the right accounting software, you can do all that and quickly convert those estimates to invoices—making it easier to seal the deal with your customers.

Track all your costs and identify profitable projects

With so many moving parts in a plumbing project, it can be difficult for your team to track project costs, like pipe fittings, gas expenses, and labor hours, from beginning to end. Accounting software helps you manage every detail from the start. You’ll save money by tracking time, materials, payroll, and expenses. Good job costing helps you avoid unpleasant cost overruns with accurate projections.

Once you have job costing under control, you’ll have data-driven answers to some of your biggest questions: Are you running profitable projects? What is your profit margin? Who are your most profitable and least profitable clients? With these insights, your subcontractor business can spend more time managing customer relationships efficiently and invest more in profitable projects.

Run your business on the go

Your projects happen at various off-site locations. So, you’ll need to access your accounting data on the go. Accounting software makes it possible to use your mobile device to enter transactions, record expenses, invoice customers, and send reports anywhere. Your data is automatically backed up to the cloud and syncs across all your devices.

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