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 10 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:
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.
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
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
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.
Zoho Books
https://www.zoho.com/us/books/
Zoho Books distinguishes itself as a leading accounting software through its comprehensive and user-friendly features designed to meet the needs of small to medium-sized businesses. One of its standout features is the ability to manage receivables and payables efficiently, allowing businesses to streamline their cash flow management. Zoho Books simplifies the invoicing process with customizable, professional invoices and supports multi-currency transactions, making it ideal for businesses operating globally.
Additionally, Zoho Books offers robust expense tracking and automated workflows, which help businesses save time and reduce manual errors. The software also includes powerful inventory management capabilities, enabling users to track stock levels, set reorder points, and manage purchase orders seamlessly. Its project management tools allow for detailed tracking of project expenses and time, ensuring accurate billing and financial oversight.
The software also integrates with other Zoho applications and third-party tools, offering a flexible and scalable solution for growing businesses.
Overall, Zoho Books' combination of advanced accounting features, ease of use, and integration capabilities make it a powerful tool for businesses looking to streamline their financial operations and maintain accurate records.
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!
.png)
