Construction Accounting Software for Project Cost Control
Utilising construction accounting software for project cost control is becoming increasingly common among construction companies. This means moving away from paper and spreadsheet-based methods.
And why shouldn’t it be more common? By utilising dedicated software for project cost control, construction companies can save significant amounts of time while simultaneously gaining better control over their project finances.
In this article, you will be introduced to the best construction accounting software for project cost control.
Planyard
Planyard is an extensive, yet cost-effective accounting software for project cost control. The software is designed to streamline processes related to project finances to help small and medium businesses get rid of spreadsheets and save time.
With a live overview of every project’s costs and forecasts, Planyard supplies companies with an accurate, powerful 360 view of the current financial performance for all active projects.
For project functions, Planyard streamlines daily tasks that connect to project financials by integrating them directly with the live project budget. These tasks include issuing purchase orders, processing purchase invoices, subcontract management, tendering processes, and more.
Purchase orders
When issuing a purchase order, you would simply utilise the standardised template available on the platform. As soon as a purchase order has been issued, correlating budget items will be updated with new committed costs.
The committed costs ensure that we have a full overview of all costs, independent of whether the invoice has arrived or not. This will help you avoid any nasty surprises not accounted for at the end of the project.
By issuing the purchase order in Planyard, there is no need to forward the information into spreadsheets or anywhere else, Planyard does it for you.
Processing purchase invoices
Invoices can be automatically uploaded into Planyard via the accounts payable email. Once an invoice lands in Planyard, it will automatically be scanned and information will automatically be picked up.
For example, if a purchase invoice contains a purchase order reference, it will automatically be allocated to the correct project, the company that sent the invoice and the related line-items in your budget. All that has to be done is to verify the information and click submit.
Once an invoice has been processed, it is automatically sent to accounting systems such as Xero or Quickbooks for processing by accounting.
Meanwhile, the budget will automatically update with the new approved costs.
To make sure that you are compliant internally as well as externally, you can also set up approval flows for your cost documents.
Subcontract management
By adding your subcontracts to Planyard, you enable the handling of subcontractor variations (change orders) and valuations (progress reports) directly in the Platform.
This will provide you with a full financial overview and progress of all the active contracts connected to your project.
It’s also possible to process pre-payments and subcontractor retention.
Again, all features seamlessly integrate with the live project budget enabling you to have a live overview of all committed and approved costs for the project, without having to manually forward the information.
RFQ (or RFT)
In Planyard, you can utilise the RFQ feature to run the tender process. Specify the needs, add documents, select what vendors and subcontractors you want to include in the tender from your contacts database and submit.
Your contacts will receive an email with information on how to submit their bids. Once bids are collected, Planyard will visualise all bids side by side for an easy overview.
Simply select the contractor or vendor you decide to go with and create a new contract in the platform.
Other
Besides the features listed above, Planyard will also provide functionality for handling client contracts and client variations (change orders), CVR and more.
Conclusion
Planyard is an excellent choice for construction accounting software for project cost control. By interlinking the daily tasks of the project financials, Planyard significantly improves the workflows. While project functions save time carrying out tasks in Planyard, a more accurate and extensive financial overview is provided by the system automatically.
Sage 300
Sage is probably more known for their comprehensive general accounting tools. Sage300 Construction and Real Estate, however, is an accounting software for project cost control tailored for construction companies and property developers.
The software helps construction companies with precise budgeting, keeping track of costs against budget and live adjustments of forecasts. It includes features for managing change orders and subcontractor contracts.
With user-defined cost breakdowns, Sage300 enables companies to set up their own cost structures for more precise tracking and reporting.
Additionally, the software connects field operations with back-office tasks, enhances construction accounting with cloud capabilities, and provides tools for document control, reducing risk by identifying issues early,
Key features
Total Project Visibility: Offers comprehensive oversight for managing projects and properties effectively.
Risk Management: Manages risks related to subcontractors and vendors to ensure project and financial stability.
Custom Reporting: Improves decision-making with customizable reports for enhanced project visibility.
Real-time Collaboration: Facilitates communication and collaboration across all phases of a project.
Field and Back Office Connection: Links field operations with back office tasks for streamlined project management.
Mobile and Cloud Capabilities: Enhances construction accounting with advanced mobile and cloud functionalities.
Document Control: Provides greater control over documents, ensuring a clean audit trail and reduced risk.
Early Issue Identification: Helps in identifying potential issues early to prevent them from becoming serious problems.
CoConsturct
CoConstrcut is a construction accounting software for job costing, focusing on supporting house builder and remodelers in their operations. The product offers a set of financial management tools to help improve processes for construction companies.
Providing detailed budgeting and job costing tools, CoConstruct allows companies to track expenses in real-time against budgets for each project.
CoConstruct also supports the management of change orders, this includes tracking and approving changes. Budgets will automatically be updated based on adjustments.
Time tracking and labour costs are also provided by the software. This allows companies to do accurate tracking of hours on projects and their impact on project costs.
Key features
Change Order Management: Streamlines change order processes, updating budgets and job costs to maintain accurate financials.
Custom Financial Reporting: Enables customisable reports for insights into job costs, budget variances, and project financial health.
Expense Tracking and Allocation: Simplifies tracking and allocation of all project expenses to ensure accurate job costing.
Time Tracking & Labor Costs: Offers time tracking for labour cost management and accurate project cost assessment.
Materials Management: Manages material costs from estimates to actuals, ensuring budget accuracy through comparisons and adjustments.
eSUB
eSub provides a cloudbased software tailored for electrical, mechanical, drywall, HVAC, plumbing contractor as well as other speciality subcontractors. Amongst other things, eSUB aims to more efficiently link the field with office.
The system is provided as a cloud based web platform, but can also be accessed by field operatives via a mobile application.
The software offers real-time insights into project finances, allowing for enhanced management of labour, material costs, and project budgets. It’s designed to cater to the needs of trade contractors, providing a balance of flexibility and precision for tracking job costs.
eSUB supports making informed decisions through comprehensive data analysis, leveraging historical data for accurate estimates, and real-time budget monitoring to avoid surprises.
Key feature
Real-time Insights: Provides instant access to project financial data, aiding in financial health management.
Flexible and Precise: Customizable to match specific systems, phases, and cost codes for trade contractors.
Comprehensive Data Analysis: Utilizes historical project data for creating accurate estimates and identifying profitable projects.
Budget Monitoring: Enables project managers to track budgets closely, making timely adjustments to prevent overruns.
JOBPOWER
JOBPOWER is a construction accounting system for job costing that provides a number of tools aimed at enhancing the financial aspects of construction projects. The system allows contractors to track costs against the budget in real time.
Among the features available in the platform, you’ll find functionality for handling payroll, purchase orders, and document management. This enables the management of material costs and subcontracted labour.
The software provides a range of customisable reports, including job cost reports, profit/loss statements and budget comparisons.
Key features
Job Costing: Offers detailed tracking of costs for each project phase, ensuring precise cost management and financial oversight.
Change Order Management: Simplifies recording and tracking of change orders, directly updating job costs and budgets for accurate financial reporting.
Materials Cost Tracking: Tracks material purchases and usage by job, updating costs in real time for accurate budgeting and cost management.
Contract Management: Manages contracts and related financial documents, ensuring alignment with job costs and budget projections.
Vendor and Subcontractor Payments: Streamlines payment processes for vendors and subcontractors, incorporating these costs into job costing for complete financial tracking.
Plexxis
As with eSUB, Plexxis focus on supporting subcontractors and speciality trade contractors. The platform offers features to enhance financial oversight of projects.
Plexxis allows for real-time tracking of costs for labour, materials, equipment and subcontractors. The visibility ensures that variances in the budget can quickly be identified and subsequently, adjustments can be made.
With job cost reports, businesses get enhanced insights into project profitability and areas for improvement.
Change order management is also featured in the platform, ensuring that contractors can keep track of any changes and make sure they are accounted for in the budget.
Key features
Estimating: Facilitates the creation of project bids using tools, establishing a solid base for meticulous job costing.
Real-Time Cost Tracking: Tracks costs for labour, materials, equipment, and subcontractors, identifying budget variances early for corrective action.
Change Order Management: Manages change orders, automatically updating job costs and budgets to reflect financial impact.
Labour Cost Management: Offers labour cost tracking through timekeeping and workforce management, allowing for monitoring of project expenses.
Material Cost Tracking: Provides tools for tracking material costs from purchase to usage, which will be reflected in job cost reports.
Coins
Coins is a widely known Construction Software company based out of UK. The software focuses on real-time data and automated workflows to enhance viability through out the steps of a construction project.
Project management, financial management and workforce management are features supported by coins. The platform combines cloud based webservices with mobile application, to improve links between field and office.
Job costing is integrated with project management which offers visibility of financial performance. Costs are tracked against project budget and schedule
Coins is a viable choice for companies looking for construction accounting system for job costing.
Key features
Project Management Integration: Integrates job costing with project management functionalities to provide visibility and management of project finances.
Financial Management Tools: Includes budgeting, forecasting, and financial reporting capabilities for managing project costs.
Workforce Management & Payroll: Combines payroll and HR features to track labor costs accurately for job costing purposes.
Supply Chain Management: Manages costs associated with materials and subcontractors, from procurement to payment, ensuring accurate reflection in job costs.
Real-time Data Access: Allows for the immediate access to job costing data, helping users quickly identify and address cost variances.
Cloud-Hosted Solution: Offers remote access to job costing information, facilitating effective management of job costs by project teams from any location.
Conclusion
All of the above are viable options in terms of construction accounting software for project cost control. If you are looking for a construction accounting system for job costing, that is easy to implement with fast ROI, Planyard is the best choice for your company. With all features being directly linked with the project budget, workflows are heavily enhanced.
While saving time on processes that regularly are time thieves, you’d also have a more accurate overview of financial performance.
We’d be happy to go through everything with you live, clicke HERE to book a demo.