Best Bookkeeping Software for Construction 2025
Construction bookkeeping requires specialized software with job costing, AIA billing, and retainage tracking—features missing from general accounting tools. The best options include Sage 100 Contractor for mid-size firms, Foundation for scalability, and QuickBooks with construction add-ons for small contractors. 35% of construction firms are increasing software investment in 2025.
This guide compares construction-specific accounting software by job costing depth, AIA billing support, certified payroll, and pricing. Learn which features matter for residential vs. commercial contractors.
Why General Accounting Software Falls Short
Construction accounting differs fundamentally from standard business accounting. You need to track multiple profit centers (jobs) simultaneously, each with unique cost structures.
General Accounting Software Limitations
- No job-level cost tracking—only company-wide P&L
- No AIA billing formats (G702/G703) for progress payments
- No retainage receivable/payable accounts
- No certified payroll or prevailing wage tracking
- No WIP reporting for over/under billing analysis
- No change order management tied to budgets
Construction Software Requirements
- Track profitability per job, phase, and cost code
- Generate AIA-compliant progress billing automatically
- Separate retainage from regular A/R and A/P
- Calculate certified payroll with prevailing wages
- WIP schedules showing billing vs. cost status
- Link change orders to job budgets and billing
Essential Construction Bookkeeping Features
Evaluate software based on these construction-specific capabilities.
Job Costing
Track costs by project, phase, and cost code
- Labor cost tracking
- Material costs by job
- Equipment allocation
- Subcontractor expenses
- Cost-to-complete projections
AIA Billing
Generate G702/G703 progress billing forms
- Percentage of completion
- Materials stored
- Retainage calculations
- Change order tracking
- Lien waiver management
WIP Reporting
Work-in-progress analysis for each job
- Over/under billing status
- Projected final cost
- Completion percentages
- Revenue recognition
- Backlog reporting
Retainage Tracking
Manage withheld payments in/out
- Retainage receivable
- Retainage payable
- Release schedules
- Aging reports
- Cash flow impact
Certified Payroll
Davis-Bacon and prevailing wage compliance
- WH-347 form generation
- Union rate tables
- Multiple pay rates
- Fringe benefits
- Compliance reporting
Change Orders
Track scope changes and cost impacts
- Pending vs. approved
- Budget impact
- Client approvals
- Cost markup
- Billing adjustments
Job Costing: The Heart of Construction Accounting
Job costing tracks every expense to individual projects, enabling accurate profitability analysis and better bidding.
Cost Types Tracked Per Job
Labor
Wages, benefits, overtime
Materials
Lumber, concrete, fixtures
Equipment
Rental, fuel, maintenance
Subcontractors
Electrical, plumbing, HVAC
Overhead
Insurance, permits, office
Cost Codes
Break costs into standardized categories (CSI codes) for comparison across jobs and accurate estimating.
Phases
Track costs by project phase (foundation, framing, MEP, finish) for progress analysis.
Cost-to-Complete
Project remaining costs based on actuals vs. estimates to catch overruns early.
Construction Bookkeeping Software Comparison
Compare leading solutions by construction-specific features and pricing.
| Software | Best For | Pricing | Job Costing | AIA Billing | Retainage |
|---|---|---|---|---|---|
| QuickBooks + Add-ons | Small contractors | $1,830-$4,400/year | Basic (add-ons needed) | Via integrations | No built-in |
| Sage 100 Contractor | Mid-size contractors | Custom quote | Comprehensive | Built-in | Built-in |
| Foundation Software | All sizes | Custom quote | Advanced | Built-in | Built-in |
| Buildertrend | Residential builders | $499-$1,099/month | Good | Limited | Basic |
| Acumatica Construction | Large contractors | $15,000+/year | Enterprise | Built-in | Built-in |
QuickBooks + Add-ons
$1,830-$4,400/yearSmall contractors
Pros
- Familiar interface
- Bank feeds
- Many integrations
- Affordable start
Cons
- No native retainage
- Limited job costing
- Need multiple add-ons
Sage 100 Contractor
Custom quoteMid-size contractors
Pros
- Full construction features
- Strong job costing
- WIP reporting
- Service management
Cons
- Steep learning curve
- On-premise option
- Custom pricing
Foundation Software
Custom quoteAll sizes
Pros
- 35+ years experience
- Mobile app
- Scalable
- Strong support
Cons
- No public pricing
- Implementation time
- Learning curve
Buildertrend
$499-$1,099/monthResidential builders
Pros
- All-in-one platform
- Client portal
- Project management
- Easy to use
Cons
- Higher monthly cost
- Less suited for commercial
- Limited certified payroll
“My clients send me all kinds of messy PDFs from different banks. This tool handles them all and saves me probably 10 hours a week.”
Ashish Josan
Manager, CPA at Manning Elliott
Complement Your Construction Software with Zera Books
While construction accounting software handles job costing and billing, Zera Books automates document processing—converting bank statements, invoices, and financial documents into clean data.
Bank Statement Processing
Convert contractor bank statements from any bank to Excel, CSV, or QBO for import into Sage, Foundation, or QuickBooks.
Invoice Extraction
Extract vendor invoice data with AI. Capture line items, amounts, and dates for AP processing.
Financial Statement Analysis
Process P&L and balance sheets for WIP reporting inputs and bonding requirements.
$79/month unlimited processing
Construction Bookkeeping FAQs
Related Resources
Streamline Your Construction Document Processing
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