With the complexities enveloping the accounting aspects of construction, such as invoicing, payroll, tax payments, compliance, and even job-specific cost calculations, it feels like trying to navigate a construction site without blueprints, especially without the proper equipment. The GPS navigation system has made progress billing and subcontractor billing management much easier, and this is exactly what construction accounting software does. At Intersoft Systems Inc., we design powerful solutions to help your systems achieve financial clarity in construction so you can focus on building and let us handle the growing complexities in project financial management.

In this blog, we will discuss the benefits and features of construction accounting software and explore the reasons to consider these robust systems an essential part of every business, irrespective of the magnitude.

Right software construction accounting can make or break your projects. Construction accounting software enables better streamlined operations throughout the organization, drives down errors, enhances compliance, and aids in staying aligned with the industry’s policies and regulations. The following list contains features that top ranking construction accounting software possess:

Constructive accounting is among the most challenging tasks in a construction company, most particularly in tracing costs on ongoing projects. With the right construction accounting software, you will be able to track the expenditure of labor, materials, and equipment by each project phase which is remarkable. It makes certain that you are always in sync with the finances of your corporation and able to catch them sooner rather than later.

Being informed that certain expenditure plans would go overboard is a feature construction accounting software takes pride of due to the set budget alerts feature, or aids in preventing further project / construction costs escalations and maintains that certain budget target. A feature this useful ensures that an organization manages to avoid project cost overruns.

Within the construction industry, progress billing is common, and so is using construction accounting software. One of its major functions is AIA contract compliance, which includes the automatic creation of G702/G703 forms for standardized billing. These forms do more than just administrative work; they keep your billing accurate, clear, and timely, all while ensuring industry standards are maintained.

Construction billing also entails managing retention, which is another important element. A percentage of the payment (usually 5–10%) is retained until project completion. Construction accounting software facilitates the retention management process. The system automatically retains the retention amount, ensuring that funds are not released prematurely, and granting you accurate financial records in the process.

Managing subcontractors and their associated paperwork isn’t easy. However, managing subcontractors becomes easier with construction accounting software thanks to document storage. Insurance certificates, signed contracts, and other essential documents can be collected, stored, and retrieved digitally, ensuring that important information is preserved and can be accessed with ease when needed.

Tracking subcontractor invoices and approvals tends to be an area of frustration for many contractors. With construction accounting software, payment scheduling is automated which makes it easy. It saves all the pertinent information, so each subcontractor gets paid on time and in full.

Like any other type of software, construction accounting software comes with benefits that extend beyond just features. These benefits range from having accurate information and being scalable. Here’s how specialized software can change the way your institution manages finances:

When dealing with taxes, payroll, and any compliance paperwork, precision is an absolute necessity. Manual calculations can come with problems, and costly ones at that. Construction accounting software lessens the burden by automating the most challenging computations, like tax rate derivations and lien waivers.

For multi-regional projects, the software automatically sets the sales tax rates of certain states that are region specific. This eliminates the possibility of miscalculating tax and incurring penalties for it.

There’s a considerable amount of paperwork and invoices that need to be documented for construction projects. Manual processing takes a substantial amount of time- hours in fact- which can hinder cash flow. Construction accounting software eliminates this issue. It automates workflow and invoice processing, reducing invoice payment time from tedious hours to a matter of minutes. This greatly improves cash flow due to seamless cash inflow automation.

Procore and BuilderTREND are industry-standard project management software. Good software syncs with those platforms. This effortless integration makes sure the financial contents are in sync with the project status so one does not have to deal with incomplete information.

Whether you are dealing with a small residential project or managing 500 commercial builds, the right construction accounting software assists with your business. There is no need to change systems as your business expands; the software grows with you. It ensures effortless operations at any magnitude or complexity of project portfolio.

At Intersoft Systems Inc., we specialize in developing construction accounting software tailored to the needs of construction industry corporations and Project Managers. Our systems have experienced financial experts’ input, making them easier for contractors to use.

Our mobile software solutions forecast cash flow shortfalls and equipment servicing costs using AI. This enables proper scheduling and mitigates financial limitations to ensure projects do not stall.

Financial management needs to continue even after leaving the office. With our mobile software solutions, you can approve invoices, log expenses, and review budgets from the job site. Being able to access the system from anywhere guarantees that you are always in control.

Construction projects come with numerous requirements, including OSHA reporting and tracking the prevailing wage. Our Compliance Automation Hub assists in automating these processes as a part of project compliance with modern legislation, thereby enabling tax filings to be automated as well.

Intersoft Systems Inc. has a roofing company case study with demonstrable results after installing our software. They achieved a reduction in project overruns by 25% and profit margins increased by 18%. The software ensured that they remained on budget and avoided unnecessary costs, streamlining the accounting processes, thus improving their financial performance.

Better construction accounting software can effectively facilitate ease in managing finances over several projects. With real-time tracking, various management features, and integration with other existing tools, the right software will help you not only build faster, but also smarter and more profitably. Intersoft Systems Inc. provides you with essential tools to tackle perplexing financial challenges and stay on top of your project timelines. Gain control over your finances by giving our solutions a try today!

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