What's the best accounting software for contractors?
QuickBooks is the standard for construction companies. Most use either QuickBooks Desktop or QuickBooks Online. Both can handle job costing, progress billing, and subcontractor tracking if they’re configured correctly.
Desktop tends to work better for contractors who need advanced job costing features and detailed reporting. Online works if you want cloud access and simpler workflows. The difference matters less than how the software gets set up.
Generic QuickBooks setup doesn’t work for construction. You need job costing enabled, a chart of accounts structured for construction, and classes or locations set up if you’re tracking multiple revenue streams. Without proper configuration, the reports are useless and you can’t see profitability by project.
Other options like Buildertrend, CoConstruct, or Procore focus on project management with some accounting features. They work for scheduling and client communication but most contractors still need QuickBooks for actual bookkeeping and tax preparation. Running two systems creates extra work reconciling data between them.
The software choice matters less than having someone who knows construction accounting set it up correctly. Job costing, progress billing, retainage tracking, and subcontractor management need specific configuration. Most contractors who set up QuickBooks themselves end up with a system that doesn’t track what they actually need to know.
If you’re already using QuickBooks but it’s not giving you useful job-level profitability, the issue is probably setup, not the software. QuickBooks setup for construction requires knowing how contractors operate, not just knowing the software.
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More Questions
How should I keep books for my construction company?
Keep books for a construction company by setting up job costing in your accounting software, coding every expense to a project, and reconciling accounts monthly. But most contractors need professional help to do this correctly.
Read answerWhat can contractors deduct on taxes?
Contractors can deduct vehicle expenses, tools and equipment, insurance, licensing fees, home office costs, subcontractor payments, and business-related travel and meals.
Read answerWhen should I hire an accountant for my business?
Hire an accountant when you're behind on your books, have employees, receive IRS correspondence, or spend too much time on financial tasks outside your expertise. Most business owners wait until they're overwhelmed, which means paying for cleanup on top of ongoing help.
Read answerWhat taxes do you have to pay as a contractor?
Self-employment tax and income tax are the main ones. You'll pay 15.3% in self-employment tax plus federal and Arizona income tax on your net profit. Quarterly estimated payments are required to avoid penalties.
Read answerWhat are the disadvantages of hiring an accountant?
The main disadvantages are cost, potential communication delays, and the challenge of finding someone who understands your specific business. Large firms often treat small clients like a number, which leads to generic advice and slow response times.
Read answerWhat is catch up bookkeeping?
Catch up bookkeeping is the process of bringing your financial records current after falling behind. It involves entering transactions, reconciling accounts, and producing accurate financial statements for the months or years you missed.
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