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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

Do you need an accountant for a small LLC?

You're not legally required to hire one. But whether you should depends on your time, your comfort with tax rules, and how complicated your business actually is. Most LLC owners benefit from professional help at some point.

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What can an enrolled agent do that a CPA cannot?

Both enrolled agents and CPAs have unlimited practice rights before the IRS. The real difference is scope and focus. EAs specialize exclusively in tax matters while CPAs spread their expertise across auditing, financial statements, and other services.

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What expenses are 100% deductible?

Most ordinary and necessary business expenses are 100% deductible. The confusion usually comes from specific exceptions like meals at 50%, entertainment at 0%, and vehicle or home office expenses based on business use percentage.

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Is virtual bookkeeping worth it?

For most small businesses, yes. Bookkeeping doesn't require someone in your office. It requires expertise, responsiveness, and someone who understands your business. None of that depends on geography.

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What is job costing for construction?

Job cost tracking records all expenses and revenue by individual project so you can see which jobs are profitable and compare actual costs to estimates.

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What kind of accounting does a construction company need?

Construction companies need job costing to track profit by project, proper revenue recognition for progress billing, and subcontractor management for 1099 compliance.

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Konexus Accounting is an Arizona accounting firm specializing in small business financials. We offer bookkeeping, accounting, and tax services. Our team is led by Dan Weaver, EA. An IRS-credentialed professional with 20+ years of tax and representation experience.

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