In the fast-paced world of construction, managing finances can be especially challenging due to the complexity of long-term projects, multiple job sites, and changing contracts. To meet these challenges head-on, construction companies must adopt accounting software that complies with Generally Accepted Accounting Principles (GAAP).
Generally Accepted Accounting Principles (GAAP) are a set of rules and standards used in the United States to ensure quality standards in various aspects of financial reporting, including how to recognize revenue, classify items on the balance sheet, and determine materiality. It combines authoritative standards set by policy boards with widely accepted accounting practices.
GAAP ensures that financial statements have:
- Consistency: GAAP provides a common framework for financial reporting, which helps maintain consistency across different companies and industries.
- Accuracy: By following GAAP, companies provide a true and fair view of their financial situation.
- Transparency: GAAP requires companies to fully disclose their financial information, helping investors make informed decisions.
These principles are created and updated by the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB).
Investors rely on GAAP-compliant financial statements to make investment decisions, as they trust that the information is accurate and comparable. Public companies in the U.S. must also follow GAAP to comply with regulations set by the Securities and Exchange Commission (SEC).
GAAP in Construction Accounting
Construction accounting requires specialized tools that can handle project-based financial management, long-term revenue recognition, and decentralized production.
When applied to construction, GAAP ensures that financial statements are reliable, allowing for better decision-making and compliance with regulatory bodies. This specialized accounting system handles the unique challenges of construction finances, like tracking revenue on long-term projects, correctly assigning costs, and managing changes in contracts.
Top 12 GAAP Construction Accounting Software
This blog explores the top GAAP-compliant construction accounting software available, each designed to help construction companies maintain accuracy and transparency while improving overall financial management. We’ll cover the unique features that make these platforms essential tools for any construction firm looking to stay compliant and efficient. Let’s dive into the top options and what sets them apart:
QuickBooks Online
Website: https://quickbooks.intuit.com/online/
QuickBooks Online stands out as a cloud-based accounting solution that offers construction companies the flexibility and accessibility needed for modern business operations. Designed for small to medium-sized construction businesses, QuickBooks Online provides essential accounting features while maintaining GAAP compliance standards. The platform excels in its simplicity and ease of use, making it an ideal choice for contractors who need robust accounting capabilities without complex implementations.
Key features include real-time financial tracking, automated invoicing, expense management, and basic job costing capabilities. QuickBooks Online integrates seamlessly with numerous third-party construction applications, including project management tools, time tracking software, and specialized construction add-ons. The cloud-based nature ensures that teams can access financial data from anywhere, whether in the office or on job sites, promoting better collaboration and real-time decision-making.
The software offers multiple pricing tiers to accommodate different business sizes and needs, from simple accounting to advanced features like inventory tracking and project profitability analysis. With automatic backups, bank reconciliation, and mobile app access, QuickBooks Online provides the reliability and convenience that construction companies need while maintaining full GAAP compliance for accurate financial reporting.
Intuit Enterprise Suite (IES)
Website: https://quickbooks.intuit.com/enterprise/
Intuit Enterprise Suite represents the pinnacle of Intuit's business management solutions, combining the power of QuickBooks Desktop Enterprise with advanced integrations and enterprise-level capabilities specifically designed for larger construction companies. This comprehensive suite goes beyond traditional accounting software by offering a unified platform that addresses every aspect of construction business management while maintaining strict GAAP compliance.
The Enterprise Suite features advanced job costing and project management tools that allow construction companies to track profitability across multiple projects simultaneously. With enhanced reporting capabilities, the suite provides deep insights into project performance, resource allocation, and financial health. The platform supports complex construction workflows including change order management, subcontractor billing, progress billing, and retention tracking.
What distinguishes the Intuit Enterprise Suite is its scalability and integration ecosystem. The suite connects with leading construction software applications including scheduling tools, estimating software, and field management platforms, creating a seamless workflow from project bidding to completion. Advanced user permissions and multi-location support make it ideal for construction companies with multiple offices or complex organizational structures.
The Enterprise Suite also includes dedicated customer success management, priority technical support, and advanced training resources to ensure maximum return on investment. With its robust security features, automated compliance reporting, and enterprise-grade data management capabilities, Intuit Enterprise Suite provides construction companies with the tools needed to scale efficiently while maintaining financial accuracy and regulatory compliance.
Acumatica
Website: https://www.acumatica.com/
Acumatica distinguishes itself as a cloud-native Enterprise Resource Planning (ERP) solution specifically designed to meet the complex needs of construction companies while ensuring full GAAP compliance. Built from the ground up for the cloud, Acumatica offers unparalleled flexibility, scalability, and integration capabilities that make it an ideal choice for growing construction businesses.
The platform excels in project-centric accounting, offering sophisticated job costing, change order management, and progress billing capabilities. Acumatica's construction-specific features include comprehensive project management tools, subcontractor management, equipment tracking, and advanced WIP (Work in Progress) reporting that aligns perfectly with GAAP revenue recognition standards. The system handles complex construction scenarios such as percentage of completion accounting, retention management, and multi-currency transactions.
Acumatica's unique licensing model charges based on resource consumption rather than user count, allowing construction companies to provide access to all team members without additional per-user fees. This approach promotes better collaboration between field and office teams, improving project visibility and communication.
The platform offers robust integration capabilities with popular construction applications including estimating software, scheduling tools, and field management platforms. With its powerful workflow automation, mobile accessibility, and real-time dashboards, Acumatica empowers construction companies to make data-driven decisions while maintaining operational efficiency. The cloud-native architecture ensures automatic updates, enhanced security, and reliable performance, making it a future-proof solution for construction companies looking to modernize their financial management systems.
Foundation Software
Website: https://www.foundationsoft.com/
Foundation Software, highly regarded in the construction industry for its specialized features, offers comprehensive accounting solutions tailored to contractors’ unique needs. With nearly 40 years of experience, it has become a trusted partner for construction professionals nationwide. The platform includes robust features like job costing, allowing users to track every dollar, hour, and quantity with customized detail, and payroll processing that simplifies payroll with multiple jobs, localities, rates, and trades on a single timecard. Additionally, it provides CPA tools for remote report access and time tracking capabilities that sync data from the field to the office using patented facial recognition and GPS location stamps. Foundation Software’s deep construction expertise, strong GAAP compliance, and detailed financial reporting set it apart. The flexible platform is designed specifically for contractors, maintaining a user-centered approach with continual product investment to meet evolving needs. Their responsive support team, managed by construction experts, is always ready to assist, helping over 43,000 construction professionals manage more profitable jobs with reliable and efficient solutions.
Viewpoint Vista
Website: https://www.viewpoint.com/en-sea/
Viewpoint is transforming construction project management with its cloud-based solutions like Viewpoint For Projects™, Viewpoint Team™, and Viewpoint Field View™. These tools streamline project delivery, enhance collaboration, and ensure seamless information management, covering everything from planning to execution. They facilitate effective communication among stakeholders, reduce errors, and improve efficiency by providing secure, indexed, and searchable project data.
Key differentiators include fully cloud-based solutions for real-time collaboration, comprehensive project management coverage, and intuitive interfaces. Trusted by nearly 8,000 construction companies worldwide, Viewpoint’s solutions simplify project oversight and support successful project delivery.
Premier
Website: https://premiercs.com
Premier software is built to meet real-world financial management needs with ease. Known for its user-friendly interface and seamless connectivity, it eliminates the need to juggle multiple tabs.
This software is a game-changer in the construction industry, offering efficiency and effectiveness. Key features include Project Cost Forecasting to maintain financial stability, prevent cost overruns, and manage cash flow by tracking anticipated costs and reviewing monthly change orders. The platform also has real-time job cost updates, invoice approvals, and change order management.
Premier software aims to transform operations, ensure financial transparency, and improve processes for construction accounting firms.x`x`
Sage 300 Construction and Real Estate (CRE)
Website: https://www.sage.com/en-us/
For over five decades, Sage has established itself as a trusted leader in construction software, supporting over 50,000 companies. Their cloud-based suite spans preconstruction, project management, and financial operations, delivering accuracy and efficiency.
Sage's software effectively manages subcontractor and vendor risks, boosts visibility, and enables real-time collaboration. Key features include tools for managing all aspects of construction projects from planning to completion, integrated accounting and financial reporting to ensure accuracy and compliance, and detailed tracking of project costs to maintain budget control. The software also efficiently manages service operations and customer relationships, centralizes storage and access to project documents, and provides advanced reporting and analytics for informed decision-making. Sage 300 also includes construction-specific payroll solutions to handle complex payroll needs.
Additionally, Sage offers a community platform for customer support and expert learning.
QuickBooks Desktop Enterprise
Website: https://quickbooks.intuit.com/desktop/enterprise/
QuickBooks Desktop Enterprise provides a comprehensive business management solution aimed at enhancing decision-making, boosting efficiency, and increasing productivity. With features like accounting, inventory management, reporting, pricing rules, job costing, payroll, and time tracking, Enterprise provides everything you need in one place. It supports up to 1 million customers, vendors, and inventory items, and allows for detailed customization with up to 100,000 classes and 45 custom fields.
What sets QuickBooks Desktop Enterprise apart is its capacity and flexibility. It offers tailored editions for various industries, including manufacturing, wholesale/distribution, construction, retail, and professional services, ensuring that each business gets the specific tools and reports they need. The platform also includes powerful job cost tracking and customizable reports to help increase productivity and manage cash flow more efficiently. Additionally, Enterprise provides robust user permissions, allowing you to delegate work by user or role and assign access only to specific data, transactions, and reports.
Another standout feature is the cloud access option, which enables your team to collaborate from anywhere with a protected connection and automatic daily backups. QuickBooks Desktop Enterprise is trusted by businesses for its comprehensive capabilities and industry-specific solutions, making it a top choice for large businesses looking to streamline their operations and enhance their financial management.
Sage Intacct Construction
Website: https://www.sage.com/en-us/sage-construction/
Sage Construction offers innovative software solutions tailored to the construction industry's diverse needs. Trusted by over 50,000 companies for more than 50 years, Sage provides end-to-end solutions for every aspect of construction management, from preconstruction to project completion. Their software caters to various roles, including general contractors, specialty contractors, residential builders, architects, engineers, developers, and project managers. Key features include reliable budgeting, accelerated estimating, risk mitigation, comprehensive bid management tools, AI-powered takeoff capabilities, and effortless lead tracking. For financial management, Sage offers real-time visibility into project financial health, streamlining accounting, budgeting, and financial management with integrated job costing, payroll, and automated Work in Progress (WIP) reporting. Sage’s operations tools connect field and office teams, offer mobile access to project data, and provide specialized tools for service operations and property management. As the #1 provider of accounting and estimating solutions in the construction industry, Sage's software reduces risk, maximizes profitability, and streamlines business processes. With a strong partner network and a focus on customer success, Sage Construction continues to lead the industry with powerful, integrated solutions.
CMiC
Website: https://cmicglobal.com/
CMiC offers a comprehensive suite of construction management software designed to optimize productivity, minimize risk, and drive growth. With over 50 years of industry experience, CMiC’s Single Database Platform™ integrates financials, projects, resources, and content assets, ensuring seamless data flow and real-time visibility. Covering every aspect of the construction process, including bid management, project tracking, change order management, job costing, payroll, and financial reporting, all meeting GAAP compliance standards, it also empowers field teams with mobile access to project data for real-time updates and improved communication. CMiC’s unique Single Database Platform™ eliminates data silos, providing a single source of truth for all project and financial information. The software integrates seamlessly with other business applications, offering tailored solutions to address the unique challenges of the construction industry. Committed to customer success, CMiC provides dedicated support and continuous innovation, helping construction companies manage finances with accuracy, consistency, and transparency.
NetSuite
Website: https://www.netsuite.com/portal/home.shtml
NetSuite distinguishes itself as a leading business management software through its comprehensive and integrated suite of applications designed to streamline various business processes. This platform supports a wide range of functions, including finance, accounting, customer relationship management (CRM), human resources (HR), and e-commerce, all of which share a common database for seamless data integration.
NetSuite's automation capabilities are another significant advantage, allowing businesses to automate repetitive tasks such as payroll, order processing, and invoicing. The software's robust reporting and data analysis tools enable businesses to turn vast amounts of data into actionable insights, helping to identify new opportunities and optimize operations.
NetSuite also seamlessly integrates with other modules like CRM and e-commerce, providing a unified platform for all business operations.
The subscription-based model eliminates the need for significant upfront investments in IT infrastructure, and regular updates ensure that the system remains current with the latest features and improvements.
Deltek ComputerEase
Website: https://www.deltek.com/en/
Deltek ComputerEase distinguishes itself as a leading construction accounting software through several key features tailored specifically for the construction industry.
It provides real-time access to data, enhancing teamwork and facilitating more informed decision-making. The system’s scalability and adaptability make it suitable for construction businesses of all sizes, from small contractors to large enterprises.
Another standout aspect is its comprehensive job costing capabilities, which allow contractors to track and manage costs accurately across various projects. This is complemented by robust project management tools that integrate seamlessly with accounting functions.
Additionally, Deltek ComputerEase offers advanced payroll services, including support for union payroll and certified payroll reporting, which are critical for compliance in the construction sector. The software also includes features like expense tracking, receipt capture with Intelligent Character Recognition (ICR), and employee hour tracking using GPS and job geofencing, which help streamline field operations and ensure accurate data collection.
Overall, Deltek ComputerEase’s combination of specialized construction features, real-time data access, and robust financial management tools make it a powerful solution for construction businesses looking to improve efficiency and maintain financial control.
Outsource Construction Accounting Services to RedHammer
RedHammer is a renowned construction accounting service provider dedicated to enhancing your efficiency, accuracy, and compliance through personalized accounting services. With offices in Hawaii and Arizona, RedHammer offers comprehensive solutions including operational guidance, system implementations, bookkeeping, job cost reporting, and advanced accounting services such as capital advisory and fractional CFO services.
RedHammer offers outsourced custom Construction Accounting Management Services with flexible contract options, ensuring seamless integration with your existing construction accounting software. The company focuses on tailored accounting services to streamline your operations. Streamline your Construction Accounting with RedHammer today!
Frequently Asked Questions About GAAP Construction Accounting Software
What is GAAP and why is it important for construction accounting software?
Generally Accepted Accounting Principles (GAAP) are a set of rules and standards used in the United States to ensure quality standards in financial reporting, including revenue recognition, balance sheet classification, and materiality determination. GAAP is crucial for construction accounting because it ensures consistency across companies and industries, provides accuracy with a true and fair view of financial situations, and requires transparency through full disclosure of financial information. For construction companies, GAAP compliance is essential for reliable financial statements, better decision-making, regulatory compliance, and investor confidence, particularly since public companies must follow GAAP to comply with SEC regulations.
What unique challenges does construction accounting face that require specialized GAAP-compliant software?
Construction accounting presents several unique challenges that require specialized software solutions: project-based financial management where costs must be tracked across multiple jobs and locations, long-term revenue recognition that spans months or years requiring percentage-of-completion methods, decentralized production across various job sites, complex contract changes and change orders, detailed job costing for labor, materials, equipment, and overhead, Work in Progress (WIP) reporting for ongoing projects, retention payments and progress billing, and subcontractor and vendor management across multiple projects. These complexities require construction-specific features that general accounting software cannot adequately handle while maintaining GAAP compliance.
Which construction accounting software offers the best GAAP compliance features?
Several top-tier construction accounting software platforms excel in GAAP compliance: Foundation Software offers nearly 40 years of construction expertise with robust job costing, payroll processing, and CPA tools designed specifically for contractors. Sage 300 CRE provides comprehensive project management with integrated accounting and detailed cost tracking for over 50,000 companies. CMiC's Single Database Platform™ integrates financials, projects, and resources with real-time visibility and seamless data flow. NetSuite offers comprehensive business management with automation capabilities and robust reporting tools. Each platform maintains strong GAAP compliance while offering construction-specific features like job costing, WIP reporting, and project-based financial management.
How do cloud-based GAAP construction accounting solutions compare to on-premise systems?
Cloud-based GAAP construction accounting solutions offer several advantages over on-premise systems: real-time collaboration capabilities allowing field and office teams to work together seamlessly, automatic updates ensuring the latest GAAP compliance features and security patches, scalability to accommodate business growth without infrastructure investments, mobile access enabling project data management from any location, automatic backups protecting against data loss, and subscription-based models eliminating large upfront IT investments. However, on-premise solutions like QuickBooks Desktop Enterprise may offer more customization options and control over data. The choice depends on company size, budget, and specific operational needs while maintaining GAAP compliance.
What should construction companies consider when selecting GAAP-compliant accounting software?
Key considerations for selecting GAAP-compliant construction accounting software include: construction-specific features like job costing, WIP reporting, and project-based financial management; integration capabilities with existing systems, payroll, and project management tools; scalability to grow with business needs from small contractors to large enterprises; user interface and ease of use for field and office staff; mobile accessibility for real-time project updates; comprehensive reporting and analytics for informed decision-making; vendor support and training resources; total cost of ownership including software, implementation, and ongoing maintenance; and proven track record in the construction industry with strong customer references and industry expertise.
How does job costing work in GAAP-compliant construction accounting software?
Job costing in GAAP-compliant construction accounting software involves detailed tracking and allocation of all project-related expenses including direct labor costs tracked by employee and project, material costs allocated to specific jobs with purchase order integration, equipment costs including depreciation and rental expenses, subcontractor costs with proper contract management, and overhead allocation using appropriate methods like direct labor hours or costs. The software ensures accurate revenue recognition using percentage-of-completion or completed contract methods, maintains detailed audit trails for compliance, provides real-time project profitability analysis, supports change order management and contract modifications, and generates comprehensive WIP reports showing project status and financial health while maintaining GAAP compliance throughout the project lifecycle.
What are the cost considerations for implementing GAAP construction accounting software?
Cost considerations for GAAP construction accounting software include: software licensing fees which vary from subscription-based models (like Zoho Books for smaller companies) to enterprise solutions with higher upfront costs; implementation costs including data migration, system setup, and customization; training expenses for staff to learn new systems and maintain compliance; ongoing support and maintenance fees; integration costs for connecting with existing systems; potential hardware or infrastructure upgrades for on-premise solutions; and productivity costs during transition periods. Companies should calculate total cost of ownership over 3-5 years including potential efficiency gains, reduced errors, and improved compliance benefits that can offset initial investments through better project profitability and financial management.
How do these GAAP construction accounting software solutions handle integration with other business systems?
Leading GAAP construction accounting software solutions offer various integration capabilities: Foundation Software provides seamless data sync from field to office with time tracking and facial recognition integration; Viewpoint offers cloud-based solutions that integrate project management with financial reporting; Sage platforms integrate with payroll, project management, and document management systems; NetSuite provides comprehensive integration with CRM, e-commerce, and HR modules sharing a common database; CMiC's Single Database Platform™ eliminates data silos by integrating all project and financial information; and QuickBooks Enterprise integrates with numerous third-party applications through its ecosystem. These integrations ensure data consistency, reduce manual entry errors, maintain GAAP compliance across systems, and provide real-time visibility into project and financial performance.
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