There's no shortage of popular accounting packages, but if you're in the building and construction industry, you should look for a custom solution designed just for your industry. Because the construction is very different and very easy to fail.
The problem starts with the construction project itself. These contracts are often of great value, and what worries companies is that changes in scope of work (known as variations) are often greater than the projected 'gross profit' of the project. You can also get more information about construction accounting software via plexxis.com/products/solutions/pm-accounting/.
If change is not managed properly, the company's profitability is at stake. Specially designed construction accounting software will include tools to highlight this and prepare the necessary documentation during the different phases a change goes through before it is approved by the customer. This ensures that in the event of a challenge to the main contract or sub-contract, the necessary documentation is available to help the company establish its claim in court.
For construction projects with varying scopes; appropriate changes in the value of contracts and subcontractors; and payments are out of sync with results, it is easy to understand why stakeholders are trying to clearly identify their position across all projects and take corrective action to avoid downstream liquidity problems.
Construction companies usually fail for cash reasons – so construction accounting software will focus on ensuring tight cash management where the current state is always available for all projects.