7 best accounting software tools for contractors

Managing job costs, budgets and profitability is a challenge for contractors of all sizes. Whether it’s handling overlapping timelines, tracking expenses or avoiding unexpected overruns, the financial side of construction projects can be overwhelming. In this article, we explore seven essential accounting software tools that address these challenges, helping general contractors streamline operations and improve profitability. By choosing the right job cost accounting software for contractors, you can take control of your financial management and achieve greater success.

1. Take control with work-in-progress (WIP) management automation

Contractors often manage overlapping timelines, budgets and resources across multiple projects. Without the right tools, it’s easy to lose track, leading to billing errors and delayed payments. For example, failing to recognize revenue accurately can result in cash flow issues, causing financial strain mid-project.

With WIP management automation, tools like Sage Intacct Construction provide real-time updates on project progress. Contractors can prevent mismanagement by staying on top of billing cycles and identifying potential issues before they escalate.

2. Streamline invoicing with purchasing and accounts payable automation

Imagine processing dozens of invoices manually every week, only to discover a major billing error that delays supplier payments and disrupts schedules. Accounts payable (AP) automation eliminates this headache by digitizing workflows. Tools like Sage Intacct use features such as optical character recognition (OCR) to scan invoices, match them with purchase orders and helps to get those invoices into the hands of approvers more quickly, reducing errors and improving cash flow management.

This feature ensures timely payments, helping contractors maintain positive vendor relationships and cash flow.

3. Simplify complex cost structures with flexible tools

Construction projects often involve intricate cost structures, such as

• Subcontractor costs
• Change orders and scope adjustments
• Rental equipment and material expenses