What features should contractors have in their accounting software?
Payroll software can be a lifesaver for businesses trying to keep up with a growing staff each with different situations. This is especially true when you’re working in contracting and construction and your projects and employees are always changing.
When choosing which software is right for your contracting business, you want software that can grow with your business and is flexible enough to adapt to a variety of situations like remote workers and independent contractors.
Let’s explore some of the top features you should have in your payroll software.
Job cost tracking
You want to be able to see how profitable a job is, and track it in real time. Ordinary bookkeeping software will handle basic accounting and the general ledger, but it isn’t as easy to manage the job cost or project-specific activity. Construction software allows you to make decisions in time to correct any issues and avoid losses at the end of a job.
Payroll is always complex, but especially so when dealing with union employees and staff overturn. When working with the IRS and your local union, you want to make sure payroll is organized and timely to prevent underpaying or overpaying what you owe. The right software can help make sure everything is square when you need to generate reports.
Some construction projects use AIA Billing, a standard created by the American Institute of Architects. With AIA Billing, contractors use forms G702 and G703 for billing depending on the job’s progress. Software set up with AIA Billing will make it much easier to complete these forms for your jobs.
Multi-division and multi-location capabilities
Your company might have several locations or teams working on different projects. You’ll want to see both how individual projects or regional offices are performing, and get a complete picture of the company’s financials. Your software should be able to compartmentalize data from different projects while also providing a full picture.
Your employees and managers aren’t in an office like other companies, so you’ll need software that makes it easier for them to manage information wherever they are. Software with a great mobile app will make it easier to stay efficient on job sites and share information quickly. Mobile software allows employees to share photos, field reports, enter employee time, mark materials received and more. Mobile access means this information is shared in real time, rather than waiting for a report at the end of the day.
Equipment and inventory management
Equipment is a large cost for construction companies, and constitutes a tax-deductible asset. Tracking equipment is important come tax time for claiming those deductions. If you have a warehouse with products, you’ll also need to keep an accurate count of items, their price and usage. Accounting software will help track equipment and inventory related to a project.
If your contracting company is ready to upgrade your accounting, our financial specialists are ready to help. Contact Patin and Associates today to get started.