15 Key Features of Construction Accounting Software

June 27, 2024
John Meibers
John Meibers
VP & GM of Deltek ComputerEase
15 Key Features of Construction Accounting Software

In the construction industry, precise accounting is crucial for maintaining profitability and ensuring project success. Traditional accounting software often fails to handle the complexities of construction projects, which is where construction accounting software like Deltek ComputerEase comes in. This specialized tool streamlines financial management, improves accuracy, significantly decreases the number of manual processes, reduces human error, and enhances overall efficiency. In this article, we will explore the key features of construction accounting software that are essential for any construction business aiming to optimize its financial operations.

1. Project Management

Project management, including costing and budgeting are fundamental aspects of construction accounting. Accurate cost tracking and budget management are vital to prevent cost overruns and ensure projects stay within financial constraints. Construction accounting software provides detailed cost code allocation, allowing project managers to assign costs to specific activities or phases of a project. Budget forecasting tools enable construction firms to anticipate future expenses and make informed decisions. These features collectively ensure better financial control and transparency throughout the project lifecycle.

2. Job Costing & Tracking

Job costing is an essential feature of construction accounting, enabling businesses to monitor the job profitability of individual projects. Construction accounting software offers detailed job cost reports, breaking down expenses by labor, materials, subcontracts and equipment. Real-time tracking capabilities allow project managers to monitor costs as they occur, providing insights into project performance. This level of detail helps in making data-driven decisions and ensures that each job remains profitable.

3. Work in Progress Capabilities

Managing Work In Progress (WIP) is crucial for tracking project progress, completion and financial performance. Construction accounting software solutions offer robust WIP capabilities, allowing businesses to monitor the status of ongoing projects. Key features include tracking project costs against revenue, calculating earned value and forecasting project completion. Accurate WIP reporting provides insights into project profitability and helps in making informed financial decisions. This ensures that projects are on track and budgets are adhered to, ultimately contributing to the overall success of the business.


 

Grow Profits with Accurate WIP Reporting


Learn how you can grow your profits and keep projects running smoothly with accurate construction WIP reporting


Read Now

 

4. Accounts Payable & Receivable

Effective cash flow management is essential for the financial health of construction businesses. Construction accounting software enhances accounts payable (AP) and accounts receivable (AR) processes through efficient invoice management and payment scheduling. Automated reminders ensure timely collections, while integration with project management tools provides a unified view of financial transactions. These features improve cash flow, ensuring that businesses can meet their financial obligations and invest in growth opportunities.

5. Financial Reporting & Analysis

Comprehensive financial reporting is necessary for understanding a construction company’s financial health. Construction accounting software offers customizable, detailed reports, such as profit and loss statements and balance sheets. These financial reports provide valuable insights into business performance. Additionally, dashboards displaying key performance indicators (KPIs) enable quick access to critical financial data. With these tools, construction companies can make informed decisions based on real-time data and trends.

6. Construction Payroll Management

Managing payroll in the construction industry is challenging due to varying wage rates, union regulations and multiple job sites. Construction accounting software simplifies payroll management with automated processing, ensuring accurate and timely payments. The software’s ability to comply with labor laws and regulations reduces the risk of errors and penalties. By streamlining payroll processes, construction companies can save time and resources, allowing them to focus on core business activities.

 

“Deltek ComputerEase handles our payroll splendidly, and the integration with the software is flawless. If I do have an issue, the payroll team is quick to react.”

– Margie Rife, CAO, J.S. Brown & Co.

 

7. Compliance & Regulatory Management

Construction companies must adhere to numerous compliance requirements, including tax laws and safety regulations. Construction accounting software helps automate compliance tracking and integrates with tax reporting tools, ensuring businesses remain compliant with all relevant regulations. This reduces the risk of non-compliance penalties and simplifies the regulatory reporting process, providing peace of mind to business owners and managers.


 

Prevailing Wage Essentials for Contractors


Learn how your construction projects can adhere to prevailing wage requirements with the right resources and software.


Watch On Demand

 

8. Inventory Management

It’s important to manage and optimize inventory levels, preventing shortages or overstock situations. With inventory management, you can credit your job costs when an item is returned from a job and put back into inventory, catalog actual inventory of supplies to take advantage of scale pricing by purchasing in bulk and scan inventory using any mobile device to track stock levels immediately.

9. Integration with Other Systems

Seamless integration with other business systems is crucial for maximizing operational efficiency. Construction accounting software integrates with project management software, financial systems and other operational tools. This ensures a unified data flow across different departments, eliminating data silos and improving overall productivity. By consolidating data from various sources, businesses can achieve a holistic view of their operations, enabling better coordination and decision-making.

10. Mobile Accessibility

The construction industry is increasingly mobile, with workers and managers often on the go. Construction accounting software offers mobile apps that provide on-the-go access to financial data and project information. Real-time updates from job sites ensure that everyone involved in the project has the latest information, enhancing communication and collaboration. Field mobility increases productivity by allowing quick data entry and access, regardless of location. Additionally, time and expense tracking from the field enables accurate, timely recording of labor hours and material costs, helping to keep projects on budget and ensuring that billing and payroll processes are streamlined.

11. Cloud-Based Accessibility

With a cloud-based system, you can ensure real-time visibility and access to financial information, fostering collaboration and adaptability in a dynamic construction environment. Cloud-based software provides the freedom of remote access, empowering on-the-go professionals to manage construction financials anytime, anywhere. Assess your software's reliability by determining if accessing your data remotely, in real time, is easy.

12. Equipment Tracking

Effective equipment management is vital for construction projects, as equipment represents a significant investment and impacts project timelines. Construction accounting software includes features for tracking equipment usage, maintenance, and costs. These tools allow businesses to monitor the location and status of their equipment in real-time, schedule regular maintenance to prevent breakdowns and allocate equipment costs accurately to specific projects. By managing equipment efficiently, construction companies can reduce downtime, extend the lifespan of their assets and ensure that equipment is available when and where it's needed.

13. Purchase Order and Subcontract Management

Whether you self-perform on your jobs or you sub out all of the work, high-quality construction software can track and manage your purchase orders and subcontract agreements. You will have the capability to automatically track all job costs to effectively manage supplies, material and subcontractor expenses. With this feature, it is easy to monitor retainage, material billings and committed costs throughout the job lifecycle so jobs stay profitable.

14. Customer Relationship Management (CRM)

With CRM, you can maintain a comprehensive database of client interactions, improving customer relations and communication. Stay in front of prospects and customers and provide them with a positive customer service experience. Focus on sales to win and maintain business, and then easily manage customer communications to improve customer retention. With these advantages, you will see the benefits of more jobs, increased profits and happier customers.

15. User-Friendly Interface

A user-friendly interface is essential for maximizing the benefits of construction accounting software. Intuitive design and easy navigation reduce the learning curve for new users, allowing teams to become proficient quickly. Key features of a user-friendly interface include customizable dashboards, drag-and-drop functionality and easy access to help and support resources. By providing a seamless user experience, construction accounting software ensures that all team members can utilize the software effectively, leading to increased productivity and efficiency.


 

Construction Accounting University


Watch a free series of educational classes to review the fundamentals of construction accounting.


Watch On Demand