For construction companies, there’s more to a project than just building. Accounting and payroll processing are just as important to manage. But when you have multiple jobsites, manual processes can cause payment delays—and an unhappy workforce.
Many companies struggle with inefficient processes. From tracking down and verifying hours to inputting everything into one system, processing payroll is a workflow that can cost a company valuable time and resources.
Luckily, construction accounting software makes it easy to track job costs online and ensure more timely payroll. The best part? Some even integrate with project management software for the field, meaning better data collection (including time cards), too.
Here’s why accurate payroll is important—and how to choose the best construction accounting software for your company.
How does inaccurate job costing increase turnover rate?
One of the biggest reasons why a construction company loses employees is not paying them accurately (or at all). Field crews are already working hard to meet project deadlines and expectations. At the end of the day, they shouldn’t be worried about whether or not they’re being paid. That’s why it’s important to stay on top of job costing at all times.
The bottom line: When your employees are paid for the hours they work, everyone’s happy. Workers can focus on the tasks at hand, and payroll teams won’t have as many late nights at the office.
Streamlining payroll is easier said than done—but it’s possible with the right methods and tools.
What are some pitfalls of time cards and accounting in construction?
The construction industry is no stranger to pen and paper reports. However, these older processes can take a lot of time out of the workday. Time that’s better spent on making a project more successful and profitable.
Time cards (especially paper ones) can delay payroll with things like:
Manual entry or double entry
Incomplete or missing time cards from the field
Late or missing supervisor approvals
Like we mentioned before, everyone cares about being paid (accurately) in a timely manner. Manual processes slow things down, and increase the risk for human error. Ultimately, if workers aren’t paid or happy, they’ll leave. What does that mean for your business? Construction project delays, unsatisfied clients, and a damaged reputation.
Cloud-based accounting software helps you streamline payroll processing and improve cash flow.
Construction accounting software—how does it help?
The accounting features you get ultimately depend on the software you choose.
In general, construction accounting software helps you manage:
Job cost accounting
Payroll processing
Accounts payable
Billing and invoicing
Progress billing
Certified payroll reporting
Budget reports
Change orders
Other general accounting tasks
With less paper trails and more accurate insights, construction businesses can process payroll faster and better support their teams.
How do you choose the best construction accounting software?
When choosing construction software, you should think about what you want out of it—and how it fits into your company’s big picture. Consider the features you want. Are you looking for ease of use? Low implementation time? An all-in-one or point solution?
Our advice: Don’t limit your construction business to just one. When you build a construction tech stack, you can cover all your bases and improve workflows for every phase of a project. (Including areas outside of accounting or payroll.) Project management is simpler than ever.
You should also consider the integrations of your potential accounting solution. The more integrations there are, the more options you have to choose and combine technology that works for you. Since technology works differently for the field and the office, be sure to ask what your field crews think, too. After all, your project data comes from them.
Depending on the integration, technology can help you streamline:
Finances (with accounting software)
Construction project management
Equipment rentals
Field service management
Why should you integrate field software (like Raken) with accounting software?
Every project has its own job size, scope, materials, and labor costs. Those things can (and often do) change. That’s why field data collection and real-time visibility is key to a construction project’s success.
Field management is another popular software solution among construction companies. When communication between the field and the office is smooth, you get the insights you need to improve projects.
For example, Raken lets you collect and store digital time cards in one place. From our construction time tracking app, crews can submit time cards on the go. Timesheet approvals give you extra visibility and protection against unapproved changes as well.
What’s more—Raken also connects to many accounting software for construction companies. That means more accurate time data, and less errors from manually inputting it into your accounting system yourself.
Streamline your payroll and field data with Raken.
With Raken, you get more than just digital time tracking. You also get daily reports, production tracking, toolbox talks, and safety and quality checklists.
Schedule a demo to see it all in action—and set yourself apart in the construction industry.