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October 31, 2019

How Much Does Construction Accounting Software Cost?

accountingcostMany contractors wonder why the price of construction accounting software can’t be posted like a price tag on a product in a popular online retail store. You may not be pleased with the fact that you have to speak to a sales rep each time you want to know the price of particular accounting software.

The truth is that the cost of accounting software varies depending on a variety of factors including:

  • The size and complexity of the software
  • The number of modules or features you want
  • The number of users who will be using it in your company

We’re fully prepared to discuss each of these aspects with you. We can easily sort this out in a brief phone call and give you a fairly accurate price estimate for Sage Construction Accounting Software. Meanwhile, here are the factors that can help you determine how much software for accounting in the construction industry can cost.

How Complex Is the Accounting Software?

You can decide how complex or simple the accounting software should be. You’ll find construction accounting software that’s fully dedicated to solving accounting problems. At the same time, you’ll also see huge all-in-one construction management enterprise resource planning (ERP) applications.

Different accounting applications have been designed to handle the job costing and financial management tasks of small, mid-sized and large contractors and subcontractors.

Construction Software Modules

Some of the basic features of top-notch accounting software include job costing, project management, accounts payable, detailed construction billing and a robust payroll module with the ability to receive real-time reports. These features are available on most systems, but they may be slightly modified in different solutions.

Other modules included may be:

  • Inventory management
  • Unit price billing
  • Document imaging and printing
  • Equipment management

Based on the number of additional modules and the number of users that will be registered to use the software, these systems may cost anywhere from $2,000 to as much as $50,000.  If you decide to use a cloud-based accounting system that works on a monthly subscription model, it may cost you a few hundred to many thousand dollars a month.

Number of End Users

The cost of your accounting system will be directly linked to the number of people allowed to use it. These users are usually called “named” or “concurrent” users by software vendors. Each space for a named user will be assigned to just one person in your company. For instance, if you have a ten-user license, it means the system will only accept login details for 10 employees.

On the other hand, some software is sold to “concurrent users.” So, the price you pay is determined by the number of people logged in at a particular time. For example, if you have a 7-concurrent user license, you can have a login for your 10 employees but only 7 will be allowed to log in at any time. If another person wants to log in, one of the present users has to log out.

So, how does the number of user licenses affect the price of the same software? A construction firm with just 5 end users won’t need the same amount of support as one that has up to 15. As a result, they won’t need to pay the same price either. This also affects the training hours needed and the type of training required before you start using the software.

The Cost of Maintenance and Support

Regular support and maintenance are needed for accounting software. If you already use a cloud accounting application, you’ll be paying an annual subscription fee which covers the cost of updates and support. With an on-site installation, the support cost will be factored in as a percentage of the initial purchase price.

Regular updates will ensure that the software complies with newly released compliance requirements. This includes things like payroll forms, healthcare reporting, tables for tax reporting and other vital regulatory requirements.

Even if you’re bothered about the new features included for regulatory compliance, the updates will help keep the software working well and deal with any security issues that can make the software vulnerable to data hackers.

Why Does Construction Software Cost More Than Other Popular Accounting Software?

Most applications you can download for a relatively small subscription fee only offer basic accounting that is applicable to virtually all small businesses. But construction accounting software offers a lot more, and it’s designed to fit the size of your business.

Construction software incorporates different specialized features to enable contractors to do their business with a lot of automation. It eliminates the need to keep searching for suitable add-ons or doing manual work and importing data into spreadsheets.

One of the most important features is the ability to monitor costs for each job or contract and to maintain a separate general ledger for each one. It also offers a bigger and more comprehensive database for complex payroll operations.

Some contractors may argue that they can get add-ons for some of the features that construction software has. Yes, it’s possible to add apps for features such as the American Institute of Architects (AIA) billing, job costing and some project management into some accounting packages. But the additional monthly subscription fees will be increased by hundreds of dollars monthly. With a dedicated construction accounting application, you enjoy full system integration, and you only need a single vendor for support rather than multiple ones for each add-on you buy.

How Much Will Your Construction Accounting Software Cost?

This question can’t be answered by simply quoting a flat rate. However, it’s not difficult to figure it out. With a simple conversation, you’ll have the answer within a few minutes. We always want to ensure that we understand your business needs and factor in all the required software costs before we give you a quote.

We want to know:

  • The types of jobs you do
  • How large your company is presently
  • What you plan to do within the next 5 years

Discussing with you personally will help us quote an accurate price. It will also allow us to recommend the right software for the success of your business in the long-term.

Take the First Step Towards Getting the Best Construction Accounting System

Get a live tour or demo of our Sage Construction Accounting Software. Let one of our consultants walk you through this powerful application today.

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