3 Reasons You Need Accounting Software for Homebuilders

Mike BayesBy Mike Bayes, VP of Sales

Few industries require as much exclusive, proprietary software as the homebuilding business – drafting and design, estimating, scheduling… but accounting?

Most builders, remodelers and contractors use generic accounting software, such as QuickBooks.  After all, there’s nothing special about recording transactions, and standardized accounting methods work for just about any business, right?

Well, yes and no.  If all you want your accounting software to do is record payments and deposits and tell you how much mullah you have in the bank, then yes.  However, nearly every construction businesses can benefit from features found in accounting software built specifically with builders and contractors in mind.

Why Accounting Software for Homebuilders and Contractors?

1.  Integration
Typical accounting software keeps track of your income and spending, but most don’t integrate with your estimating or job costing software.  For example, you can pay a vendor’s bill from any accounting program, but unless it’s integrated with your estimating and bidding software, you have no way of knowing if the bill is accurate or if it’s time to pay.  Specialized accounting software for homebuilders allows you to compare the bid with the invoice or statement at a glance to confirm the bill is accurate and ready for payment.  One new CASHFLO user reported saving $5,000 in controlling supplier overcharges in the first month of using our software – that’s many times more than the monthly subscription fee.

So, great accounting software for contractors and builders will integrate with your estimates to make sure your bills are correct and budgeted for.

2.  Monitor and manage Change Orders
How many times have you closed out the books on a completed project only to find a Change Order that had not been processed?  If it hasn’t happened to you, you’re one of the fortunate few!  But this illustrates another reason that builders and contractors need specialized accounting software that includes the ability to create orders ‘on the fly’, even from the field, and track them to make sure that none slip through the cracks.

3.  Planning
Typical accounting programs tell you what happened, not what’s currently happening in your business… or what will happen 30-, 60-, or 90-days in the future!  By the time you receive and compare invoices with budgets and estimates, you’re looking at numbers have already happened and closed.  So, if there’s a problem, it’s often too late to do anything about it.

Builder and Contractor accounting programs, such as CASHFLO™, show you in an instant where each job – and your business as a whole – is now; today.  You also get planning and management tools that project cash flow based on current accounts, scheduled draws, and costs to complete current jobs.  In fact, the planning tools alone are a compelling reason to move from generic accounting software to CASHFLO.

And this just scratches the surface.  Specialized builder and contractor accounting software just makes sense.  It saves countless hours of switching back and forth between estimating, scheduling and accounting programs, and keeps everything in one convenient place.

To see if the CASHFLO™ Job Costing and Accounting System makes sense for your company, call 303-221-0823, or click here to have a consultant contact you.