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July 12, 2018

7 Reasons Why a Contractor Needs an Accounting System

Contractors have a lot of moving parts to their jobs, especially when it comes to money. Accountingaccounting-1 is a huge part of the contractor’s daily life, and the tools you use can help you determine your overall profitability.

Accounting in the construction business can easily be a full-time job in itself. That’s why having the right software to manage your day-to-day activities matter. Choose wisely, and your accounting can become less of a hands-on activity and more of a helpful tool that benefits your bottom line.

Take a look at the top seven ways a contractor can benefit from having a rock solid accounting system in place:

#1 – Job Costing

Much of your success as profitable contractor relies on accurate job costing. Sage software can help streamline this process by assigning costs to jobs in real-time so nothing falls through the cracks. Track detailed cost breakdowns for each job and each job component.  Easily determine whether a job is under or over budget.

#2 – Change Orders

Construction jobs usually undergo a variety of changes throughout the project. From design changes to compliance issues to customer requests, you must remain ready to alter your scope of work at a moment’s notice while also staying on budget and on time.

Sage software allows you to easily implement change orders, accessing up-to-the-minute costs and project data. Team members can access the changes quickly, recalculating costs with ease.

#3 – Reporting Accuracy and Efficiency

Accuracy is a major factor in construction accounting, from data input to reporting. Having all your data centralized boosts your efficiency by eliminating the need for multiple reporting systems.

#4 – Subcontractor Compliance

Subcontractors are a given in almost every construction job and strict management is needed. Sage software manages all aspects of the subcontractor relationship, from waivers and insurance certifications to certified payrolls and much more.  Best of all, it integrates it all within the business processes of your organization.

#5 – Payroll

The most profitable contractors control every aspect of their labor costs, from hours worked to workers compensation costs, union reporting and more.

Sage software is built for the construction industry and offers payroll features that will track hours, ethnicity, social security numbers, work types, fringe benefits, and everything else necessary to comply with state, local, and union payroll requirements.

#6 – Work in Process

Tracking work-in-process is the most effective project management. Using spreadsheets outside of your accounting system can be a project manager’s nightmare. Sage software provides complete visibility into all aspects of a project, giving companies complete control.

#7 – Project Management

A centralized source of information is your assurance of having a complete and current picture of any project.  Instantly see the status of contracts, profit, billings, costs, cash, RFIs and submittals all at once.  Project information is always current and there is no limit to what information can be shared.

The Accounting Solution for Contractors

Sage software is made for contractors because of its comprehensive ability to cover all phases of construction:  estimating, finance, projects, field operations, service management, and real estate.  It’s worth looking into!

Talk to us today about scheduling a free demo to see how Sage can help you build a more profitable business.

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