Why do construction contractors need accounting software?
Accounting software for construction contractors comes in endless forms with differing prices and functions, yet many contractors still haven’t adopted this technology. Instead these contractors may prefer to use custom made spreadsheets for their accounts, or even stick to paper accounts. Today, both of these approaches are likely to limit the growth and potential of your business, and specialist accounting software may well be a wise investment. If you’re still sceptical about the merits of contractor software, read on…
Some of the most tedious admin tasks for contractors involve the hiring and management of subcontractors. Today’s contractor software systems excel at subcontractor management, providing automatic CIS verification and allowing you to fill in CIS returns and send them to HMRC online, quickly and easily from within your software. Integrity’s Evolution M software will also alert you when subcontractor payments are due so you never miss payment for an important subcontractor. Your software also provides a central, secure database of subcontractor info – including CIS and insurance details – so you’ll never mislay a crucial piece of data when you desperately need it. If subcontractor management takes up hours of your time each month, specialist contractor software can certainly ease the burden.
Some contractors choose to use basic accounts software alongside custom spreadsheets and databases that handle job costing, retentions, and other elements of the business – simply because standard accounting software often isn’t equipped with these specialist functions. However, transferring data between two separate systems is a hassle. With an accounting system that integrates your finances with job costing and other contracting information, you won’t need to worry about switching between systems, and your data will always be compatible with other software modules.
All it takes is one bad job to critically damage your cash flow and leave you struggling to pick up the pieces. With skills shortages and rising raw material costs putting pressure on your bottom line, can you afford to avoid taking a closer look at job costing? Job costing software helps you track every single cost for each job, letting your drill down to problem areas and easily identify where specific suppliers or subcontractors are causing issues, providing you with valuable information for future tendering processes. Additionally, some software packages contain cost-value reconciliation modules to give you a snapshot of in-progress jobs and their profitability.
Almost all small businesses have encountered a cash flow problem at some point in their histories. Good finance remains difficult to obtain, so your own financial management must be sound in order to prevent cash flow issues. However, it’s not only your financial management skills that are required to avoid problems – your financial data must also be well ordered and easily sorted. Good accounting software will ensure your data is structured correctly. It’ll also help you transfer data into reports so it’s even easier to track your finances.
There are many more ways in which construction contractors can benefit from accounting software. If you have a particular problem with your current accounts system and you’d like to resolve it, get in touch with the Integrity Software team. We’ll explain how Evolution M works for contractors and how you can begin the hassle-free upgrade process.