Having the right tools for the job is important in any industry. While construction companies are known for using a lot of heavy machinery, they also depend on software for accounting.
While every company’s accounting department deals with the bottom line, the financial practices of a company are dependent on its industry.
QuickBooks is a top choice for many professional organizations, but the unique demands of the construction industry are sometimes a bit too complex for this software.
QuickBooks Doesn’t Always Respond Well to Changes
Companies that have straightforward finances find QuickBooks to be very useful. The software is great for entering reoccurring expenses and keeping track of things that occur on a regular basis.
Construction companies aren’t that simple. Not only do they deal with large projects on a regular basis, but any project may be vastly different from the next. Projects can also change quickly, meaning things like timelines and costs can fluctuate.
Trying to keep track of this with QuickBooks can lead to many problems. Users may have to dig through old records, make multiple manual updates, and keep an eye out for duplicate entries. Since even the smallest miscalculation can lead to costly problems in the future, most construction companies look for software better-tailored to their industry.
Keeping Track of Costs Can Become Difficult
One of the most important aspects of accounting is keeping an accurate record of expenses. Construction companies use a wide array of materials, hire various classifications of laborers, and deal with many licensing requirements. All of these things rack up their own costs, and managing each one efficiently can be difficult without the right software.
While QuickBooks does provide a way to track expenses, it fails to provide the level of detail construction companies need. Sometimes being able to plan and calculate the potential profit (or loss) from a given decision can make or break a company.
QuickBooks WIP Tracking Can Be Hard to Use
Companies that deal with standard one-time one-good transactions can track their expenses easily. But for industries like construction that deal in projects, management needs to know how things are progressing.
QuickBooks keeps track of work-in-progress data outside of the software, making it a bit cumbersome to obtain this information. Construction companies need quick, reliable, and easy ways to manage WIP reporting. Holistic construction software integrates these important functions, simplifying the process and making it easy to keep track of a project.