Businesses can use construction accounting software to improve efficiency and reduce costs. The construction industry faces unique accounting challenges that specific software makes less challenging or resolves entirely. With data entered into software, managing finances, streamlining workflows, or monitoring productivity becomes less time-consuming.
Here are the key features you can expect in this type of accounting software.
Feature #1: Unify Data in One Place
Unify your data management in one place. Using construction accounting software eliminates the need for multiple spreadsheets and disconnected documents. Instead, use your construction accounting software as a centralized database. Consolidate it all.
Feature #2: Payroll Management
Construction accounting software has advanced payroll features. You can calculate and manage payroll, generate payroll reports, and distribute payroll costs to individual project.
Feature #3: Generate Reports
As you enter data into construction accounting software, automated reports become easy. These can be used personally or sent to team members, project stakeholders, or clients. Accounting software like this can generate hundreds of reports.
Feature #4: Project Management Integration
Your construction accounting software may not have the certain project management features you want. Fortunately, many of these programs can integrate project management software to minimize communication and workflow disruption.
Feature #5: Multi-Currency Support
Construction companies have projects, clients, suppliers, and partners in different countries. Accounting software offers multi-currency and multi-language support, making it easy to manage finances in different jurisdictions and across borders. You can communicate with clients in their preferred language.
Feature #6: Automate Invoicing
Many people use automated invoicing in construction accounting software. This feature allows invoices to be sent to clients or suppliers without manually sending them. With the schedule already in place, the software will invoice for you.
Feature #7: Process Payments
The software automatically registers payment processing as you send invoices and receive payments. This automates payment tracking and streamlines cash flow while reducing the risk of errors.
Feature #8: Account Tracking
As invoices get paid, they can be matched to orders, receipts, and delivery tickets. Accounts can be tracked over time. If a discrepancy or issue matches a payment to an account, this is flagged and can be highlighted for further action by the primary user.
Feature #9: Real-Time Job Costing
Real-time job costing will identify potential cost overruns before an inspection. You can track multiple projects’ costs simultaneously, taking corrective action before it’s too late.
Feature #10: Multi-Project Accounting
Manage multiple projects simultaneously, each with different cost components, subcontractors, and change orders. Use your construction accounting software as a hub to manage your financial business.
Feature #11: Job to Date Reporting
JTD reporting tracks project financial performance in real time, comparing actual expenses to budgeted costs. It provides a project manager with the data to determine whether the project is profitable.
Feature #12: Time and Expense Tracking
Users can track time and expenses for a project and ensure clients are accurately billed for work and labour costs. This data can be accessed manually or through third-party tools.
Feature #13: Cost Allocation
Determine how to allocate costs for a project. Track cost allocations for labour, materials, equipment, and overhead. Improve financial visibility and monitor allocation profitability.
Feature #14: Track Purchase Orders
Create and track purchase orders in your accounting software, managing vendor relationships and controlling associated costs. Automate the creation of POS as needed, track status, and receive alerts as orders are fulfilled.
This is all done in real time, ensuring you have up-to-date information on materials. Visibility into a project’s status in real-time also allows managers to base their decision-making on accurate data as the construction project progresses.
Feature #15: Ensure Compliance
Your software generates financial statements and ensures compliance with accounting standards. Compliance features can minimize errors, reduce the risk of penalties, and streamline auditing and tax preparation if this support is needed.
Feature #16: Data Security
Developers recognize the importance of construction accounting software security and privacy. Mitigate fraud risks and safeguard sensitive financial information with advanced data security features.
Feature #17: Scalability
Accommodate your company’s size and growth with the ability to scale up or down as needed. This type of construction software can be customized and tailored to your precise needs for existing workflows and processes.
Feature #18: Cloud-Based
Cloud-based construction accounting software allows remote access. A web-based application like this may be easier to manage for some, eliminating the need to maintain infrastructure or install software directly on a laptop. You can access it from any device.
Also Read: 7 Client Collaboration Accounting Software Features to Enhance Customer Experience
