10 Best Construction Accounting Software 2024 – Tested & Compared

• Customizable Invoicing: Create detailed, professional invoices. These invoices can include specific project details, payment terms, and schedules for prompt and accurate payments.
• Expense Tracking and Reporting: Track material costs, labor expenses, and other project-related expenditures in real-time, enabling precise budget management and comprehensive financial oversight.
• Project Integration: FreshBooks works smoothly with tools like Trello, Asana, and Basecamp, coordinating financial aspects with project timelines, resource allocation, and progress tracking for cohesive project operations.
• Time Tracking: Track billable hours for tasks and projects. You can ensure accurate billing and payroll management for construction workers and subcontractors.
• Mobile Accessibility: The mobile app allows you to access your account on the go. You can manage invoices, expenses, and project details from any job site, enhancing flexibility and efficiency.

Besides its 30-day free trial, Freshbooks has different tiered plans for companies of various sizes.

• Lite: Well-suited for contractors and small construction firms seeking essential accounting tools without complex project management features. With the Lite plan, users can send unlimited invoices and estimates and track expenses for up to five clients.
• Plus: FreshBooks’ Plus plan is ideal for growing construction businesses that need to manage more complex projects. It allows you to track up to 50 billable clients and send unlimited invoices.
• Premium: Suitable for construction businesses with complex accounting needs and growing teams. It allows unlimited client tracking and invoicing, customizable email templates, dynamic client emails, and advanced features like Accounts Payable and project profitability reports.
• Select: This tailored option includes a dedicated account manager, lower payment processing fees, simplified data migration, automated bill and receipt capture, and exclusive support with a dedicated number.

In addition to the different tier plans, Freshbooks offers additional features for a fee. You can add extra team members for $11 each per month, pay a custom payroll rate on all subscription levels, and access advanced payments for $20 monthly.

Freshbooks is the best construction accounting software for individuals or small businesses in the construction industry who value simplicity and efficiency in managing their finances.

• Project Management: Detailed tracking of project expenses, tasks, and time, is particularly beneficial for bid management in the construction industry by ensuring accurate cost estimation and resource allocation for project bids.
• Vendor Management: The vendor portal lets suppliers manage transactions independently, saving you from long email threads and calls. They can upload invoices directly, which you can track in Zoho Books until they’re paid.
• Tax Management: Zoho Books simplifies tax compliance by handling your sales tax returns and 1099 calculations. The Avalara integration automatically retrieves current tax rates and calculates final invoice amounts, making the process even more seamless.
• Unified Invoicing: Consolidate all project-related expenses and services into one single invoice, ensuring clear and efficient billing for your clients.
• Automated Workflow: Set up recurring profiles for tasks like sending invoices and chasing payments, allowing the software to handle these transactions automatically.

Zoho‘s forever-free plan makes it one of the most affordable accounting software on our list. To access more features and support, you can try one of the paid plans listed below.

• Free: The forever-free plan is designed for businesses with less than $50K annual revenue. It includes one user and one accountant, with email support. With this plan, you can perform basic accounting tasks such as creating invoices, tracking mileage, accepting online payments, automating payment reminders, and generating up to 50 reports.
• Standard: The standard plan allows up to three users, offers email, voice, and chat support, and generates up to 5,000 invoices per year.
• Professional: This plan accommodates up to five users and includes additional features like purchase-ordering and inventory-tracking tools.
• Premium: Supports 10 users and offers all features included in the two lower-tier paid plans. Additionally, it provides a custom domain, vendor portal access, and Zoho Sign and Twilio integrations.
• Elite: The Elite package supports 10 users. It also offers unlimited custom reports, access to advanced inventory management features, and support for multiple currencies.
• Ultimate: The ultimate plan supports up to 15 users and includes 25 custom modules. It also includes advanced data analytics and all features available in the Elite package.

For all plans, adding extra users costs $2.5/user per month.

Zoho Accounting is best suited for small to medium-sized construction businesses looking for affordable and user-friendly software.

• Bank Reconciliation: The software suggests matches for transactions, categorizes them, and applies rules, simplifying the reconciliation process for efficient financial management.
• Online Payment and Invoicing: Customers can pay invoices using various methods, such as credit cards, debit cards, or direct debit, increasing the likelihood of timely payments.
• Project Tracking: Effortlessly set up projects, create branded invoices based on project tracking details, and monitor financials through intuitive dashboards.
• Multi-Currency Support: Xero allows construction businesses to handle international transactions effortlessly. It offers over 160 currency options with instant conversions and automatic updates on exchange rates.

Xero offers new users a 75% discount on all pricing plans for the first six months.

• Early: The early plan offers access to Hubdoc and allows for up to 20 invoices and five bills monthly.
• Growing: This includes everything in the Early plan plus unlimited invoices, bills, and bank transactions.
• Established: The Established plan builds upon the features of the Early and Growing plans, offering additional capabilities such as expense tracking, project management, and support for multiple currencies.

Xero also collaborates with Gusto to offer more HR features, like certified payroll administration. The monthly cost is $40 plus $6 per person.

Xero is best suited for mid-sized construction businesses looking to streamline their financial information.

• Automated Banking and Accounting: Financial tasks are streamlined with features like automatic payment reminders, data tracking, and expense tracking.
• Expense Tracking: Track expenses efficiently by capturing receipts digitally and automating categorization for easy organization.
• Cloud Accounting: The cloud accounting feature allows users to access multiple clients’ accounts in real time from a single login. It utilizes industry-standard security measures to securely store crucial financial data and ensure it stays updated across all devices.
• Client Management: Organize client account information, create customer groups, and manage multiple banking accounts within the platform.
• Tax Features: It offers built-in tax features like automated reporting, payment/filing reminders, and tax preparation tools to simplify tax-related processes and ensure compliance.

QuickBooks offers four pricing tiers, which include:

• Simple Start: Simple Start includes income & expenses, sending invoices & quotes, connecting your bank, and basic reporting. It supports one user plus your accountant.
• Essentials: Additional features include bill management, time tracking, and multi-currency support. It allows access for three users plus your accountant.
• Plus: Plus adds recurring transactions, inventory tracking, project profitability tracking, and budgeting. It supports five users plus your accountant.
• Advanced: Get for up to 25 users, workflow automation, custom fields, custom user permissions, online backups, and revenue recognition management.

QuickBooks provides a 90% discount for the first 6 months when you sign up. When you pay annually, you get a 50% discount valid for 12 months.

QuickBooks Online is an excellent choice for small businesses wanting to simplify invoicing and integrate payments directly into their accounting system. You can customize the platform to use only the features you need.

The mobile app is convenient for those who need to manage accounting on the go. It includes most online platform features and adds mileage tracking and receipt capture for easy recordkeeping.

• Automated Contract Generation: Generate contracts with just a few clicks. Integrating your existing systems, such as CRM or accounting software, will enable Bonsai to populate contract details, reducing errors and automatically saving time.
• Secure eSignatures: The eSignature feature enables secure contract signing from anywhere, at any time. The platform ensures that all signed documents are legally binding and compliant with industry standards.
• Centralized Contract Repository: A centralized repository for all your contracts, making it easy to manage and track them throughout their lifecycle. You can easily search, filter, and access contracts from a single dashboard.
• Automated Reminders and Notifications: Bonsai’s intelligent system sends automated reminders and notifications for contract renewals, expirations, and milestones. This helps you stay on top of your contractual obligations and avoid missed deadlines.

Bonsai offers three pricing tiers. It also has the first two months free for its yearly plan.

• Starter: The starter is perfect for freelance contractors and businesses just starting out. It gives you access to Bonsai’s templates, unlimited clients and projects, expense and time tracking, and invoicing and payments.
• Professional: The Professional plan includes everything from the Starter plan, plus these additional features: removal of Bonsai branding, workflow automation, a branded client portal, unlimited scheduling events, and integrations with QuickBooks, Calendly, and Zapier.
• Business: The Business plan encompasses all features from the Professional and Starter plans, along with additional functionalities such as resource planning and scheduling, utilization and capacity reporting, subcontractor management, and premium customer support.

You can also invite teammates to collaborate on projects and carry out tax management tasks for $10/month each.

Bonsai accounting software is great for smaller construction companies that are looking to streamline accounting and project handling workflows./su_spoiler]

Read our full Bonsai review

6. Sage – Best for New Construction Businesses

Sage is the best construction accounting software for new construction companies of all sizes, thanks to its large partner network and seamless app integration.

Its straightforward yet effective software offers all the tools to manage and analyze your construction business accounts. You can also customize Sage Construction software to fit your specific needs.

• Cost Estimation: Powerful cost estimation tools tailored for the construction industry, enabling accurate forecasting and precise tracking of project expenses. This feature supports the creation of detailed project cost estimates, enhancing bid management, budget oversight, and cost control.
• Advanced Analytics: With features like customizable reports, data visualization tools, and predictive analytics, users can make informed decisions, identify trends, and optimize financial performance.
• Inventory Management: Sage offers comprehensive inventory management tools that help businesses track stock levels, monitor sales, and optimize inventory control.
• Financial Reporting: Generate detailed reports on economic performance, cash flow, profitability, and more, facilitating informed decision-making and financial analysis.

All plans include automatic updates, unlimited support, 24/7 access to resources, and access to an online community.

• Pro Accounting: This plan is suitable for small businesses. It supports 1 user and includes key features like invoice and bill tracking, purchase orders, expense management, bank reconciliation, and core financial reports.
• Premium Accounting: This includes everything in Pro plus support for up to 5 users, inventory management, job costing, additional security, and advanced budgeting and reporting tools.
• Quantum Accounting: This plan provides the full Sage 50 Accounting experience, including industry-specific functionality for construction, manufacturing, and distribution businesses. It supports up to 40 users and adds even more advanced features like serialized inventory tracking, audit trails, and workflow management.

The per-user costs are in line with or lower than comparable small business accounting software. The annual pricing provides savings of about 15-20% compared to paying month-to-month.

Sage Accounting software is ideal for construction businesses that need both user-friendly accounting features and industry-specific functionalities.

• Tax Management: It offers robust tax management capabilities, allowing businesses to automate tax calculations, manage tax compliance, and generate accurate tax reports.
• Order Management: The order management feature enables businesses to efficiently manage the entire order lifecycle, from order creation to fulfillment.
• Fixed Asset Management: Track and manage fixed assets throughout their lifecycle. It includes functionalities for asset depreciation, maintenance scheduling, asset tracking, and financial reporting, helping businesses optimize asset utilization and ensure compliance with accounting standards.
• Financial Management: Comprehensive financial management tools, including general ledger, accounts payable, accounts receivable, cash management, and financial reporting.
• Inventory Management: This feature helps businesses optimize inventory levels, track stock movements, and streamline order fulfillment processes.

NetSuite pricing is tailored to individual needs and is not publicly disclosed. Costs are determined by factors such as platform requirements, optional modules, and user count.

While there’s no free plan available, you can explore the service through a “Product Tour” before committing financially.

Initial licensing and implementation fees and ongoing customer support expenses should be factored into your NetSuite budget.

NetSuite shines for construction companies needing a powerful all-in-one system with a focus on tax management.

It tackles complex projects, financials, and inventory, making it a great fit for larger businesses or those with demanding requirements.

• Cost Estimation and Refund Estimator: The software includes a refund estimator on all pages, which provides users with an estimated bill or refund breakdown. This feature helps users understand the factors affecting their tax bill or refund, allowing for better financial planning and decision-making.
• Free Audit: Free one-on-one audit help annually, so you’ll be fully prepared for an IRS audit. Overall, this is an excellent service for those who have recently started a business and want to ensure everything is done correctly.
• Import and Auto-Import Features: Import electronic PDFs of tax returns from various providers, such as H&R Block, TaxAct, etc. Users can also auto-import W-2 information from their employers and upload 1099-NECs and 1099-Ks from clients via photo.
• Contextual Help and Guidance: TurboTax provides contextual help through videos, expandable sidebar information, and embedded links that offer tips, explainers, and resources throughout the tax preparation process.
• Multi-Platform Support: Access and work on tax returns across devices, including computers, phones, and tablets. The software offers platform mobility, allowing users to switch between devices.

TurboTax provides a free option for basic tax filing. If you need extra assistance, you can choose from subscription plans that you only pay for when filing.

• Do Your Own Taxes: If your taxes are simple, you can file your federal and state returns for free. This covers basics like W-2 income and common deductions, with step-by-step guidance for easy self-filing.
• Assisted: This includes everything in the “Do Your Own Taxes” package, plus itemized deductions and expert guidance.
• Full Service: This package comes with the support of an expert. They help you do your taxes, and best of all, they won’t sign and file until your return is 100% accurate.

TurboTax focuses solely on tax filing, unlike competitors such as Zoho and FreshBooks, which provide a broader range of accounting solutions, including tax management.

TurboTax is ideal for sole proprietors or single-member LLCs in construction with a simple tax situation.

This includes those with income from W-2s, basic business expenses, and no need for complex tax strategies.

• International Payments: Pay vendors and subcontractors outside the U.S. from the same platform easily. Users can make international payments with a flat $20 fee per transaction, providing a convenient solution for companies with global suppliers.
• Bill Capturing: Users can scan bills or send them directly to their Pay inbox to save time on manual data entry. This streamlines the bill management process and ensures all invoices are accounted for.
• Payment Scheduling: The payment scheduling feature enables users to set automatic payments, ensuring bills are paid on time while maintaining control over cash flow.
• Credit Card Payments: Pay bills and expenses using credit cards, providing an additional 30 days of float compared to ACH or check payments. This can be beneficial for cash-constrained SMBs. Melio monetizes these transactions by charging a credit card processing fee.
• Seamless Accounting Integration: It integrates with popular accounting software like QuickBooks, Xero, and Oracle NetSuite, eliminating the need for dual data entry and simplifying reconciliation.

Melio provides flexible payment options for businesses looking for straightforward online payment solutions.

It has zero monthly fees or subscription costs; it charges only for specific transactions. ACH bank transfers and check delivery are free, but there are fees for other services.

Here’s a breakdown of their charges:

• Mail check — $1.50 (first two are free)
• Pay by card — 2.9%
• Instant transfer — 1.5% (up to $50)
• Fast ACH bank transfer — 1% (up to $30)
• Fast check — $20
• International payments — $20 (flat fee)

Melio shines for small to mid-sized construction businesses that need flexible payment options.

Their system streamlines bill payments to vendors and suppliers, offering extended payment terms to improve cash flow management.

• Bookkeeping: It includes journal entries, bank reconciliation statements, customizable charts of accounts, and balance sheets, making it a reliable tool for small businesses to manage their finances.
• Sales Tax: Wave’s sales tax feature allows businesses to easily manage sales tax rates, calculate tax on invoices, and generate sales tax reports.
• Payroll Management: Manage payroll processes efficiently. It includes tools for calculating salaries, generating pay stubs, and filing tax forms.
• Invoice Management: Create professional and customizable invoices, send them directly to clients, and track their status in real-time.
• Expense and Income Tracking: This allows businesses to track their income and expenses easily. It includes tools for linking bank accounts, importing bank statements, and categorizing transactions.

Wave features a paid plan alongside its free plan:

• Starter: The starter plan offers features like invoicing, receipt scanning, and expense tracking, all at no cost. There are processing fees for accepting online payments, but the software itself is completely free to use.
• Pro: For a monthly fee, Wave Pro unlocks features such as automatic bank transaction imports, unlimited receipt scanning, and adding multiple users. It also offers customer support via live chat and email, making it a good option for those needing more guidance.

Wave offers a $22 discount for users on the annual payment plan. Both the free and paid versions charge for transactions, starting at 2.9% + $0.60 per credit card transaction, with the first ten credit card transactions per month.

Wave accounting software is a great fit for smaller construction companies or freelance contractors.

Its user-friendly interface and free basic features like invoicing and expense tracking make it perfect for managing finances without breaking the bank.

Integrated software simplifies project management by overseeing document management, resource allocation, and project delivery. Cloud storage ensures easy access to project details.

Construction management software provides real-time project maps and schedule updates, sending reminder alerts for deadlines. This ensures everyone stays informed and aligned.

Centralizing project data and streamlining communication eliminates the need for multiple channels. Sharing and commenting capabilities facilitate teamwork, improving collaboration.

Accounting software automates data entry, invoicing, and financial reporting tasks. This eases up administrative processes and frees up time for other tasks.