For construction workers, managing finances can be challenging due to the need for tracking project-specific expenses, handling multiple clients, invoicing for labor and materials, and keeping tabs on subcontractors. The best bookkeeping software for construction workers should simplify invoicing, track job-related expenses, manage payroll, and generate clear reports to ensure financial transparency.
Here’s a rundown of the best bookkeeping software for construction workers, starting with FreshBooks.
1. FreshBooks
FreshBooks is an excellent bookkeeping solution for construction workers, contractors, and small construction businesses. It’s user-friendly and offers all the essential tools needed to track job-related expenses, invoice clients, and manage payments.
Key Features:
- Invoicing: Easily create and send invoices for labor, materials, and project-related expenses. Set up recurring invoices for ongoing projects.
- Expense Tracking: Track materials, tools, and subcontractor costs, and categorize them by project.
- Time Tracking: Log hours worked for different jobs and bill clients accordingly.
- Mobile App: Manage your bookkeeping on the go, ideal for construction workers frequently moving between job sites.
- Project Management: Assign expenses, time, and invoices to specific projects to monitor profitability.
- Custom Reporting: Generate reports such as profit and loss statements and expense summaries to help track project costs.
Why It Works:
FreshBooks is ideal for small to medium-sized construction businesses or independent contractors. Its simple interface and project-specific tracking features make it easy to manage multiple jobs and keep track of client billing, ensuring you always know where you stand financially.
2. QuickBooks Online (QuickBooks for Contractors)
QuickBooks Online offers a contractor-specific version tailored to construction workers, contractors, and small construction businesses. It’s a robust solution that can handle everything from invoicing and expense tracking to payroll and financial reporting.
Key Features:
- Job Costing: Track income and expenses for each project, giving you a clear view of profitability by job.
- Invoicing & Estimates: Send professional invoices and estimates to clients, and convert estimates into invoices once the job is done.
- Expense Tracking: Track materials, labor, and subcontractor costs in real-time, making it easy to keep project expenses in check.
- Payroll Integration: Manage payroll for employees and subcontractors, with automatic tax calculations.
- Customizable Reports: Generate custom reports for job profitability, project expenses, and cash flow.
- Subcontractor Management: Keep track of payments to subcontractors and ensure compliance with IRS 1099 forms.
Why It Works:
QuickBooks is a comprehensive solution for contractors managing multiple projects and needing detailed job costing and payroll features. It’s perfect for growing construction businesses that need robust financial tools to manage larger teams and more complex projects.
3. Xero
Xero is a cloud-based accounting software known for its simplicity and scalability. It’s a great fit for construction workers who need a flexible solution to handle invoicing, expense tracking, and project management.
Key Features:
- Invoicing & Payments: Send customized invoices and accept payments online, making it easy to get paid faster.
- Job Costing: Assign expenses and income to specific jobs or projects, allowing you to monitor profitability in real-time.
- Expense Tracking: Track materials, labor, and subcontractor payments by project.
- Mobile App: Manage your finances from the job site, including invoicing, expense tracking, and viewing financial reports.
- Bank Reconciliation: Connect your bank account and reconcile transactions automatically to stay on top of cash flow.
- Integration with Construction Tools: Xero integrates with project management tools like SimPRO and WorkflowMax, giving you even more control over project finances.
Why It Works:
Xero is a great option for small to medium construction businesses looking for flexibility and scalability. The ability to integrate with other construction management tools makes it a powerful solution for businesses that need more than just accounting.
4. Sage 100 Contractor
Sage 100 Contractor is a construction-specific accounting software designed for contractors and construction companies. It offers advanced features for project management, job costing, payroll, and financial reporting.
Key Features:
- Job Costing: Manage costs for labor, materials, and overhead by project, giving you an accurate view of job profitability.
- Project Management: Track project progress, manage budgets, and ensure projects stay within financial limits.
- Payroll Management: Handle payroll for employees and subcontractors, with built-in compliance for tax and labor laws.
- Estimating & Bidding: Create detailed estimates and bids for clients, and easily convert them into job budgets once the work starts.
- Compliance Tracking: Track compliance with labor laws, insurance requirements, and safety regulations.
- Financial Reporting: Generate custom financial reports to track cash flow, profitability, and project performance.
Why It Works:
Sage 100 Contractor is ideal for mid-sized to large construction businesses that need a powerful accounting system to manage large projects, multiple crews, and complex financial operations. It’s designed specifically for the construction industry, ensuring you have all the tools needed to manage projects effectively.
5. Buildertrend
Buildertrend is a construction project management software with built-in accounting features. It’s designed specifically for contractors and construction workers who want to streamline both their project management and financial operations.
Key Features:
- Invoicing & Payment Processing: Generate and send invoices based on project milestones or time and materials, and accept online payments.
- Project Management: Track the progress of each project, manage schedules, and collaborate with your team and subcontractors.
- Job Costing: Assign income and expenses to specific jobs, and track profitability as the project progresses.
- Subcontractor Management: Manage subcontractor payments and contracts directly within the software.
- Budget Tracking: Monitor budgets in real-time, ensuring that projects stay within financial limits.
- Financial Reporting: Generate reports on project profitability, expenses, and cash flow to help you make informed decisions.
Why It Works:
Buildertrend is an excellent solution for construction workers and contractors who want an all-in-one tool for project management and accounting. It’s especially useful for businesses managing multiple projects simultaneously and looking to streamline their operations.
6. Jonas Premier
Jonas Premier is a cloud-based construction management and accounting software tailored for larger construction firms. It combines project management with advanced financial tracking to help construction businesses manage complex projects.
Key Features:
- Job Costing: Track labor, materials, and overhead costs for each project to ensure profitability.
- Invoicing & Billing: Manage billing for time and materials, progress payments, and retainage with automated invoicing tools.
- Payroll Management: Manage payroll for employees and subcontractors, with built-in compliance for labor laws and tax reporting.
- Document Management: Store and track project-related documents such as contracts, change orders, and compliance records.
- Reporting & Analytics: Generate advanced financial reports for job costing, cash flow, and project performance analysis.
Why It Works:
Jonas Premier is ideal for larger construction companies managing complex projects. Its combination of project management and financial tools ensures that you can handle large teams, subcontractors, and multiple projects without losing track of your financials.
7. Wave Accounting
Wave Accounting is a free accounting software that offers essential bookkeeping tools for small construction workers or independent contractors. If you’re just starting out or working on a budget, Wave can handle the basics without the need for expensive subscriptions.
Key Features:
- Free Accounting & Invoicing: Send unlimited invoices, track payments, and manage expenses for free.
- Expense Tracking: Track materials, tools, and other project expenses to ensure you stay within budget.
- Online Payments: Accept payments online via credit card or bank transfer, making it easier for clients to pay on time.
- Financial Reporting: Generate basic financial reports like profit and loss statements and balance sheets to track your business’s financial health.
Why It Works:
Wave is a great solution for small construction businesses or freelancers looking for a free, no-frills accounting software. It covers all the essentials and helps you manage expenses, invoice clients, and prepare for tax time without any upfront costs.
What to Consider When Choosing Bookkeeping Software for Construction Workers
1. Job Costing
Your software should provide detailed job costing, allowing you to track labor, materials, and other project-related expenses. This ensures that you can monitor profitability on a per-job basis and make informed decisions.
2. Invoicing & Payment Processing
Choose software that makes it easy to invoice clients, accept payments, and track overdue invoices. Recurring invoices or milestone-based billing is helpful for long-term construction projects.
3. Expense Tracking
Make sure the software allows you to categorize expenses by project, track subcontractor payments, and ensure you stay within budget.
4. Project Management
If you manage multiple projects, look for software that integrates project management tools, allowing you to track timelines, manage subcontractors, and monitor project progress.
5. Payroll
If you have employees or subcontractors, payroll management is crucial. Look for software that integrates payroll and ensures compliance with labor and tax regulations.
Comparison Table for Quick Review
| Software | Best For | Key Features | Price Range |
|---|---|---|---|
| FreshBooks | Small to medium contractors | Invoicing, expense tracking, project management | Starts at $15/month |
| QuickBooks Online | Small to large construction firms | Job costing, invoicing, payroll, customizable reports | $30+/month |
| Xero | Growing construction businesses | Invoicing, expense tracking, multi-currency support | $13+/month |
| Sage 100 Contractor | Mid-sized to large contractors | Job costing, project management, payroll, financial reports | Custom pricing |
| Buildertrend | Contractors managing multiple projects | Invoicing, project management, job costing | Starts at $99/month |
| Jonas Premier | Large construction firms | Job costing, payroll, document management | Custom pricing |
| Wave | Small businesses and freelancers | Free invoicing, payment tracking, expense management | Free |
My Top Recommendation
For small to medium-sized construction workers or independent contractors, FreshBooks is a great choice because of its ease of use and features like invoicing, expense tracking, and job costing. For larger construction businesses that need more advanced project management and payroll features, QuickBooks Online or Sage 100 Contractor are robust options that offer everything needed to manage complex projects.
If you’re looking for a budget-friendly option, Wave provides essential bookkeeping tools at no cost, making it perfect for small operations or freelancers. For large-scale construction projects, Buildertrend or Jonas Premier are excellent options, combining project management with detailed financial tracking.
Take advantage of free trials to find the best fit for your construction business!