10 Best Construction Accounting Software 2024 – Tested & Compared

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Why Trust Techopedia

Construction companies need specialized accounting software to succeed. The best construction accounting software should handle job costing and estimation, use standardized AIA forms (G702 and G703) for billing, and manage equipment and assets.

To help you choose, we’ve compiled a list of the ten best accounting software options for construction businesses. Read on to learn more.

FreshBooks - Best accounting software for small businesses

60% off for first 4 months
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Zoho Books - Cost-effective accounting for SMBs

14-day free trial
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Xero - Feature rich accounting for established businesses

70% off for 6 months
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QuickBooks - Most popular one-stop-shop solution

70% off for first 3 months
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Bonsai - Simple financial management for creatives

First 2 months free
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Sage - Solves complex problems for enterprises

First 2 months free
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Oracle NetSuite - First-grade business management platform

Custom pricing
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TurboTax - Beginner-friendly all-in-one tax solution

Custom pricing
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Melio - Free iOS payment management system

Transaction fees only
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Wave - Free easy-to-use accounting platform

Free plan available
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The Best Accounting Software for Construction Companies

  1. FreshbooksBest for Invoicing and Expense Tracking
  2. Zoho BooksBest for Account Management
  3. XeroBest for Medium-Sized Construction Businesses
  4. QuickBooksBest for Cloud-Based Accounting
  5. BonsaiBest for Streamlining Workflows
  6. SageBest for New Construction Businesses
  7. Oracle NetsuiteBest for Tax Management
  8. TurboTaxBest Tax Filing Software Solution
  9. MelioBest Accounting Payment Solution
  10. WaveBest Free Accounting Software for Construction

The Top Construction Accounting Software Solutions Reviewed

We reviewed each software listed below to give you an unbiased comparison. We evaluated them based on features, value for money, third-party integration, user-friendliness, and user feedback. For more details, check out our “How we test” section.

1. Freshbooks – Best for Invoicing and Expense Tracking

FreshBooks Logo

Best For Invoicing and expense tracking
Free Trial Yes. 30-day free trial
Price From Starting from $19/month (plus 50% off for the first 6 months)
Top 3 Features Customizable Invoicing, Expense Tracking and Reporting, Project Management Software
Why We Picked It

FreshBooks is our choice for invoicing and expense tracking in the construction industry. It allows you to handle every financial aspect of your projects and save valuable time so you can focus on building and managing your projects effectively.

The platform’s collaborative features allow you to share files and updates with team members and clients seamlessly, and the integrated project management tools make it easy to stay updated on project progress.

Features
  • Customizable Invoicing: Create detailed, professional invoices. These invoices can include specific project details, payment terms, and schedules for prompt and accurate payments.
  • Expense Tracking and Reporting: Track material costs, labor expenses, and other project-related expenditures in real-time, enabling precise budget management and comprehensive financial oversight.
  • Project Integration: FreshBooks works smoothly with tools like Trello, Asana, and Basecamp, coordinating financial aspects with project timelines, resource allocation, and progress tracking for cohesive project operations.
  • Time Tracking: Track billable hours for tasks and projects. You can ensure accurate billing and payroll management for construction workers and subcontractors.
  • Mobile Accessibility: The mobile app allows you to access your account on the go. You can manage invoices, expenses, and project details from any job site, enhancing flexibility and efficiency.
Pricing Plans

Besides its 30-day free trial, Freshbooks has different tiered plans for companies of various sizes.

Plan Lite Plus Premium Select
1 month $19/month $33/month $60/month Quote-based
1 year $22/year $396/year $720/year Quote-based
  • Lite: Well-suited for contractors and small construction firms seeking essential accounting tools without complex project management features. With the Lite plan, users can send unlimited invoices and estimates and track expenses for up to five clients.
  • Plus: FreshBooks’ Plus plan is ideal for growing construction businesses that need to manage more complex projects. It allows you to track up to 50 billable clients and send unlimited invoices.
  • Premium: Suitable for construction businesses with complex accounting needs and growing teams. It allows unlimited client tracking and invoicing, customizable email templates, dynamic client emails, and advanced features like Accounts Payable and project profitability reports.
  • Select: This tailored option includes a dedicated account manager, lower payment processing fees, simplified data migration, automated bill and receipt capture, and exclusive support with a dedicated number.

        In addition to the different tier plans, Freshbooks offers additional features for a fee. You can add extra team members for $11 each per month, pay a custom payroll rate on all subscription levels, and access advanced payments for $20 monthly.

        Who's It Best For?

        Freshbooks is the best construction accounting software for individuals or small businesses in the construction industry who value simplicity and efficiency in managing their finances.

        Pros pros

        • Easy-to-use interface
        • Budget-friendly rates at a lower level
        • Integrated time and project monitoring
        • Personalized automatic payment notifications
        • Supports billing in multiple currencies

        Cons cons

        • Restricted capabilities for large enterprises
        • Additional monthly fee for each extra team member
        • Less flexibility in customization compared to alternative software
        • Simple inventory management capabilities
        • Basic accounting features included in the most affordable plan

        Read our full FreshBooks review

        2. Zoho Books – Best for Account Management

        Zoho Books Logo

        Best For Account management
        Free Trial Yes. 14-day free trial and a forever-free plan.
        Price From Starting from $15/month
        Top 3 Features Job Costing, Change Order Management, Retainage Tracking
        Why We Picked It

        Zoho is the go-to construction accounting software for account management. It makes handling daily accounting tasks easy and efficiently covers everything from the start of negotiations to final invoicing.

        It helps you keep track of time spent on tasks for accurate billing and handles tax services, including tracking payments for annual 1099s, making things simpler for construction companies and contractors.

        Features
        • Project Management: Detailed tracking of project expenses, tasks, and time, is particularly beneficial for bid management in the construction industry by ensuring accurate cost estimation and resource allocation for project bids.
        • Vendor Management: The vendor portal lets suppliers manage transactions independently, saving you from long email threads and calls. They can upload invoices directly, which you can track in Zoho Books until they’re paid.
        • Tax Management: Zoho Books simplifies tax compliance by handling your sales tax returns and 1099 calculations. The Avalara integration automatically retrieves current tax rates and calculates final invoice amounts, making the process even more seamless.
        • Unified Invoicing: Consolidate all project-related expenses and services into one single invoice, ensuring clear and efficient billing for your clients.
        • Automated Workflow: Set up recurring profiles for tasks like sending invoices and chasing payments, allowing the software to handle these transactions automatically.
        Pricing Plans

        Zoho‘s forever-free plan makes it one of the most affordable accounting software on our list. To access more features and support, you can try one of the paid plans listed below.

        Plan Free Standard Professional Premium Elite Ultimate
        1 month $0/month $20/month $50/month $70/month $150/month $275/month
        1 year $0/month $15/month $40/month $60/month $120/month $240/month
        • Free: The forever-free plan is designed for businesses with less than $50K annual revenue. It includes one user and one accountant, with email support. With this plan, you can perform basic accounting tasks such as creating invoices, tracking mileage, accepting online payments, automating payment reminders, and generating up to 50 reports.
        • Standard: The standard plan allows up to three users, offers email, voice, and chat support, and generates up to 5,000 invoices per year.
        • Professional: This plan accommodates up to five users and includes additional features like purchase-ordering and inventory-tracking tools.
        • Premium: Supports 10 users and offers all features included in the two lower-tier paid plans. Additionally, it provides a custom domain, vendor portal access, and Zoho Sign and Twilio integrations.
        • Elite: The Elite package supports 10 users. It also offers unlimited custom reports, access to advanced inventory management features, and support for multiple currencies.
        • Ultimate: The ultimate plan supports up to 15 users and includes 25 custom modules. It also includes advanced data analytics and all features available in the Elite package.

                For all plans, adding extra users costs $2.5/user per month.

                Who's It Best For?

                Zoho Accounting is best suited for small to medium-sized construction businesses looking for affordable and user-friendly software.

                Pros pros

                • Intuitive and easy-to-navigate user interface
                • Comprehensive account management features
                • Automated workflow helps streamline recurring transactions
                • 14-day free trial

                Cons cons

                • Offers limited support for free plan
                • Lack of multi-currency support in the free and basic plans
                • Monthly limit on transactions
                • Fewer integrations compared to Xero and QuickBooks

                Read our full Zoho review

                3. Xero – Best for Medium-Sized Construction Businesses

                Xero logo

                Best For Medium-sized construction businesses
                Free Trial Yes. 30-day free trial
                Price From Starting from $15/month (plus 75% off for the first 6 months)
                Top 3 Features Multi-currency support, Robust integration, Bank reconciliation
                Why We Picked It

                Due to its tailored industry features, Xero is ideal for a growing medium-sized construction business. It offers project management tools that track job costs, time, and profitability.

                The construction accounting software integrates with apps like Precoro, TidyBuild, and Planyard, streamlining project updates and data transfer. Its mobile app provides on-site access to financial data, enabling project managers to make quick, informed decisions.

                Features
                • Bank Reconciliation: The software suggests matches for transactions, categorizes them, and applies rules, simplifying the reconciliation process for efficient financial management.
                • Online Payment and Invoicing: Customers can pay invoices using various methods, such as credit cards, debit cards, or direct debit, increasing the likelihood of timely payments.
                • Project Tracking: Effortlessly set up projects, create branded invoices based on project tracking details, and monitor financials through intuitive dashboards.
                • Multi-Currency Support: Xero allows construction businesses to handle international transactions effortlessly. It offers over 160 currency options with instant conversions and automatic updates on exchange rates.
                Pricing Plans

                Xero offers new users a 75% discount on all pricing plans for the first six months.

                Plan Early Growing Established
                1 month $15/month $42/month $78/month
                • Early: The early plan offers access to Hubdoc and allows for up to 20 invoices and five bills monthly.
                • Growing: This includes everything in the Early plan plus unlimited invoices, bills, and bank transactions.
                • Established: The Established plan builds upon the features of the Early and Growing plans, offering additional capabilities such as expense tracking, project management, and support for multiple currencies.

                    Xero also collaborates with Gusto to offer more HR features, like certified payroll administration. The monthly cost is $40 plus $6 per person.

                    Who's It Best For?

                    Xero is best suited for mid-sized construction businesses looking to streamline their financial information.

                    Pros pros

                    • Unlimited user count
                    • Customizable dashboard
                    • Advanced expense tracking with automatic bank feeds
                    • Convenient tools for managing expenses

                    Cons cons

                    • Customizing invoices is less intuitive than competitors like Freshbooks
                    • Email-only support, which several users have criticized
                    • Non-intuitive user interface

                    Read our full Xero review

                    4. QuickBooks – Best for Cloud-Based Accounting

                    QuickBooks Logo

                    Best For Cloud-based accounting
                    Free Trial Yes. 30-day free trial.
                    Price From Starting from $18/month
                    Top 3 Features Cloud Accounting, Account Reporting, Expense Tracking
                    Why We Picked It

                    QuickBooks Online is the best cloud-based accounting software because it’s easy to use and offers many features and integration options.

                    It offers a contractor edition, which is excellent for construction businesses. For an extra fee, you can install it on your computer and add cloud access, making it flexible and affordable for small—to mid-sized companies. 

                    Features
                    • Automated Banking and Accounting: Financial tasks are streamlined with features like automatic payment reminders, data tracking, and expense tracking.
                    • Expense Tracking: Track expenses efficiently by capturing receipts digitally and automating categorization for easy organization.
                    • Cloud Accounting: The cloud accounting feature allows users to access multiple clients’ accounts in real time from a single login. It utilizes industry-standard security measures to securely store crucial financial data and ensure it stays updated across all devices.
                    • Client Management: Organize client account information, create customer groups, and manage multiple banking accounts within the platform.
                    • Tax Features: It offers built-in tax features like automated reporting, payment/filing reminders, and tax preparation tools to simplify tax-related processes and ensure compliance.
                    Pricing Plans

                    QuickBooks offers four pricing tiers, which include:

                    Plan Simple Start Essentials Plus Advanced
                    1 month $18/month $27/month $38/month $76/month
                    1 year $194/year $291/year $410/year $820/year
                    • Simple Start: Simple Start includes income & expenses, sending invoices & quotes, connecting your bank, and basic reporting. It supports one user plus your accountant.
                    • Essentials: Additional features include bill management, time tracking, and multi-currency support. It allows access for three users plus your accountant.
                    • Plus: Plus adds recurring transactions, inventory tracking, project profitability tracking, and budgeting. It supports five users plus your accountant.
                    • Advanced: Get for up to 25 users, workflow automation, custom fields, custom user permissions, online backups, and revenue recognition management.

                          QuickBooks provides a 90% discount for the first 6 months when you sign up. When you pay annually, you get a 50% discount valid for 12 months.

                          Who's It Best For?

                          QuickBooks Online is an excellent choice for small businesses wanting to simplify invoicing and integrate payments directly into their accounting system. You can customize the platform to use only the features you need.

                          The mobile app is convenient for those who need to manage accounting on the go. It includes most online platform features and adds mileage tracking and receipt capture for easy recordkeeping.

                          Pros pros

                          • Widely recognized by accountants due to its market leadership
                          • Integrates with over 750 business apps
                          • Offers a comprehensive set of built-in reports
                          • Regularly updated with new and advanced features

                          Cons cons

                          • Low-tiered plans are harder to upgrade
                          • Requires multiple subscriptions for those with multiple businesses
                          • Plans have user limits, unlike Xero

                          Read our full QuickBooks review

                          5. Bonsai – Best for Streamlining Workflows

                          Bonsai Logo

                          Best For Streamlining workflows
                          Free Trial Yes. 7-day free trial
                          Price From Starting from $21/month
                          Top 3 Features Budget Tracking, Finance Tracking, Client Portal
                          Why We Picked It

                          Bonsai is a valuable accounting tool for construction companies, aiding in project management and time tracking. Its strength lies in its workflow features, including contracts and proposals.

                          With Bonsai, construction companies can access numerous contract and proposal templates, simplifying client approvals. Additionally, its recurring invoices feature saves time for those handling installment payment setups.

                          Features
                          • Automated Contract Generation: Generate contracts with just a few clicks. Integrating your existing systems, such as CRM or accounting software, will enable Bonsai to populate contract details, reducing errors and automatically saving time.
                          • Secure eSignatures: The eSignature feature enables secure contract signing from anywhere, at any time. The platform ensures that all signed documents are legally binding and compliant with industry standards.
                          • Centralized Contract Repository: A centralized repository for all your contracts, making it easy to manage and track them throughout their lifecycle. You can easily search, filter, and access contracts from a single dashboard.
                          • Automated Reminders and Notifications: Bonsai’s intelligent system sends automated reminders and notifications for contract renewals, expirations, and milestones. This helps you stay on top of your contractual obligations and avoid missed deadlines.
                          Pricing Plans

                          Bonsai offers three pricing tiers. It also has the first two months free for its yearly plan.

                          Plan Starter Professional Business
                          1 month $25/month $39/month $79/month
                          1 year $21/month $32/month $66/month
                          • Starter: The starter is perfect for freelance contractors and businesses just starting out. It gives you access to Bonsai’s templates, unlimited clients and projects, expense and time tracking, and invoicing and payments.
                          • Professional: The Professional plan includes everything from the Starter plan, plus these additional features: removal of Bonsai branding, workflow automation, a branded client portal, unlimited scheduling events, and integrations with QuickBooks, Calendly, and Zapier.
                          • Business: The Business plan encompasses all features from the Professional and Starter plans, along with additional functionalities such as resource planning and scheduling, utilization and capacity reporting, subcontractor management, and premium customer support.

                              You can also invite teammates to collaborate on projects and carry out tax management tasks for $10/month each.

                              Who's It Best For?

                              Bonsai accounting software is great for smaller construction companies that are looking to streamline accounting and project handling workflows./su_spoiler]

                              Pros pros

                              • Unlimited users and projects
                              • User-friendly interface
                              • Contracts are easy to generate
                              • Easy scheduling features

                              Cons cons

                              • Does not come with tax management tools
                              • Not suitable for large-scale businesses
                              • Limited integrations

                              Read our full Bonsai review

                              6. Sage – Best for New Construction Businesses

                              Sage Logo

                              Best For New construction businesses
                              Free Trial Yes. 30-day free trial
                              Price From Starting from $58.92/month for Sage 50
                              Top 3 Features Cost estimation, Advanced Analytics, Project management Solution
                              Why We Picked It

                              Sage is the best construction accounting software for new construction companies of all sizes, thanks to its large partner network and seamless app integration.

                              Its straightforward yet effective software offers all the tools to manage and analyze your construction business accounts. You can also customize Sage Construction software to fit your specific needs.

                              Features
                              • Cost Estimation: Powerful cost estimation tools tailored for the construction industry, enabling accurate forecasting and precise tracking of project expenses. This feature supports the creation of detailed project cost estimates, enhancing bid management, budget oversight, and cost control.
                              • Advanced Analytics: With features like customizable reports, data visualization tools, and predictive analytics, users can make informed decisions, identify trends, and optimize financial performance.
                              • Inventory Management: Sage offers comprehensive inventory management tools that help businesses track stock levels, monitor sales, and optimize inventory control.
                              • Financial Reporting: Generate detailed reports on economic performance, cash flow, profitability, and more, facilitating informed decision-making and financial analysis.
                              Pricing Plans

                              All plans include automatic updates, unlimited support, 24/7 access to resources, and access to an online community.

                              Plan Pro Accounting Premium Accounting Quantum Accounting
                              1 month $58.92/month $96.58/month $160/month
                              1 year $595/year $970/year $1610/year
                              • Pro Accounting: This plan is suitable for small businesses. It supports 1 user and includes key features like invoice and bill tracking, purchase orders, expense management, bank reconciliation, and core financial reports.
                              • Premium Accounting: This includes everything in Pro plus support for up to 5 users, inventory management, job costing, additional security, and advanced budgeting and reporting tools.
                              • Quantum Accounting: This plan provides the full Sage 50 Accounting experience, including industry-specific functionality for construction, manufacturing, and distribution businesses. It supports up to 40 users and adds even more advanced features like serialized inventory tracking, audit trails, and workflow management.

                                  The per-user costs are in line with or lower than comparable small business accounting software. The annual pricing provides savings of about 15-20% compared to paying month-to-month.

                                  Who's It Best For?

                                  Sage Accounting software is ideal for construction businesses that need both user-friendly accounting features and industry-specific functionalities.

                                  Pros pros

                                  • Customized solutions through Sage’s open API
                                  • Specialized plan for the construction industry
                                  • Preferred solution by AICPA
                                  • Active community forum for expert and peer support

                                  Cons cons

                                  • No option to create recurring invoices
                                  • No automatic payment reminder scheduling
                                  • Inability to track billable hours and add billable expenses

                                  Read our full Sage review

                                  7. Oracle Netsuite - Best for Tax Management

                                  Oracle NetSuite Logo

                                  Best For Tax management
                                  Free Trial No
                                  Price From Quote-based
                                  Top 3 Features Tax Management, Order Management, Fixed Asset Management
                                  Why We Picked It

                                  NetSuite is a versatile cloud-based ERP and construction CRM solution with extensive customization options. It simplifies financial management with features like automated reconciliation, saving time by matching bank information to transactions effortlessly.

                                  NetSuite also allows unlimited user access, making it ideal for construction businesses with multiple team members.

                                  Features
                                  • Tax Management: It offers robust tax management capabilities, allowing businesses to automate tax calculations, manage tax compliance, and generate accurate tax reports.
                                  • Order Management: The order management feature enables businesses to efficiently manage the entire order lifecycle, from order creation to fulfillment.
                                  • Fixed Asset Management: Track and manage fixed assets throughout their lifecycle. It includes functionalities for asset depreciation, maintenance scheduling, asset tracking, and financial reporting, helping businesses optimize asset utilization and ensure compliance with accounting standards.
                                  • Financial Management: Comprehensive financial management tools, including general ledger, accounts payable, accounts receivable, cash management, and financial reporting.
                                  • Inventory Management: This feature helps businesses optimize inventory levels, track stock movements, and streamline order fulfillment processes.
                                  Pricing Plans

                                  NetSuite pricing is tailored to individual needs and is not publicly disclosed. Costs are determined by factors such as platform requirements, optional modules, and user count.

                                  While there’s no free plan available, you can explore the service through a “Product Tour” before committing financially.

                                  Initial licensing and implementation fees and ongoing customer support expenses should be factored into your NetSuite budget.

                                  Who's It Best For?

                                  NetSuite shines for construction companies needing a powerful all-in-one system with a focus on tax management.

                                  It tackles complex projects, financials, and inventory, making it a great fit for larger businesses or those with demanding requirements.

                                  Pros pros

                                  • Modular pricing so you pay only for what you need
                                  • Ideal for operations on a global scale
                                  • Great choice for scaling businesess
                                  • Widely recognized ERP brand with over 37,000 users worldwide

                                  Cons cons

                                  • High price point
                                  • Steep learning curve
                                  • No free trial
                                  • Must contact Oracle NetSuite for a price quote

                                  Read our full Oracle Netsuite review

                                  8. TurboTax - Best Tax Filing Software Solution

                                  Turbotax Logo

                                  Best For Tax filing software solution
                                  Free Trial Free until the first tax filing
                                  Price From Custom, $129/tax filing
                                  Top 3 Features CPA Guidance, W-2 Income Filing, Tax Refund Tracker
                                  Why We Picked It

                                  TurboTax is excellent tax filing software for small businesses that want to handle their own taxes. It helps you determine which forms to file and which deductions to claim, using its Refund Estimator to maximize your tax refund.

                                  The platform includes various tax calculators, such as those for self-employed taxes and tax brackets, to help you plan and streamline your taxes.

                                  Features
                                  • Cost Estimation and Refund Estimator: The software includes a refund estimator on all pages, which provides users with an estimated bill or refund breakdown. This feature helps users understand the factors affecting their tax bill or refund, allowing for better financial planning and decision-making.
                                  • Free Audit: Free one-on-one audit help annually, so you’ll be fully prepared for an IRS audit. Overall, this is an excellent service for those who have recently started a business and want to ensure everything is done correctly.
                                  • Import and Auto-Import Features: Import electronic PDFs of tax returns from various providers, such as H&R Block, TaxAct, etc. Users can also auto-import W-2 information from their employers and upload 1099-NECs and 1099-Ks from clients via photo.
                                  • Contextual Help and Guidance: TurboTax provides contextual help through videos, expandable sidebar information, and embedded links that offer tips, explainers, and resources throughout the tax preparation process.
                                  • Multi-Platform Support: Access and work on tax returns across devices, including computers, phones, and tablets. The software offers platform mobility, allowing users to switch between devices.
                                  Pricing Plans

                                  TurboTax provides a free option for basic tax filing. If you need extra assistance, you can choose from subscription plans that you only pay for when filing.

                                  Plan Do Your Own Taxes Assisted Full Service
                                  Custom $0-$129 $89-$219 Starting from $129
                                  • Do Your Own Taxes: If your taxes are simple, you can file your federal and state returns for free. This covers basics like W-2 income and common deductions, with step-by-step guidance for easy self-filing.
                                  • Assisted: This includes everything in the “Do Your Own Taxes” package, plus itemized deductions and expert guidance.
                                  • Full Service: This package comes with the support of an expert. They help you do your taxes, and best of all, they won’t sign and file until your return is 100% accurate.

                                  TurboTax focuses solely on tax filing, unlike competitors such as Zoho and FreshBooks, which provide a broader range of accounting solutions, including tax management.

                                  Who's It Best For?

                                  TurboTax is ideal for sole proprietors or single-member LLCs in construction with a simple tax situation.

                                  This includes those with income from W-2s, basic business expenses, and no need for complex tax strategies.

                                  Pros pros

                                  • Easy-to-use platform for simple tax filing
                                  • Excellent customer service via phone, email, or chat
                                  • Automatic field completion by uploading your W-2 or 1099

                                  Cons cons

                                  • A bit pricey compared to competitors
                                  • Tax expert assistance is available but for an additional cost
                                  • Limited accounting features

                                  Read our full TurboTax review

                                  9. Melio - Best Accounting Payment Solution

                                  Melio Logo

                                  Best For Accounting payment solution
                                  Free Trial Free
                                  Price From Transaction fees only
                                  Top 3 Features International Payments, Bill Capturing, Payment Scheduling
                                  Why We Picked It

                                  Melio is a powerful payment software for managing business payments with seamless integrations. This eliminates the need for double entry or bill reconciliation, saving you time and effort.

                                  One of its standout features is free ACH bank transfers, which most platforms, including QuickBooks, charge for. While Melio isn’t a full accounting software, it excels in payment scheduling, team collaboration, and client invoicing.

                                  Features
                                  • International Payments: Pay vendors and subcontractors outside the U.S. from the same platform easily. Users can make international payments with a flat $20 fee per transaction, providing a convenient solution for companies with global suppliers.
                                  • Bill Capturing: Users can scan bills or send them directly to their Pay inbox to save time on manual data entry. This streamlines the bill management process and ensures all invoices are accounted for.
                                  • Payment Scheduling: The payment scheduling feature enables users to set automatic payments, ensuring bills are paid on time while maintaining control over cash flow.
                                  • Credit Card Payments: Pay bills and expenses using credit cards, providing an additional 30 days of float compared to ACH or check payments. This can be beneficial for cash-constrained SMBs. Melio monetizes these transactions by charging a credit card processing fee.
                                  • Seamless Accounting Integration: It integrates with popular accounting software like QuickBooks, Xero, and Oracle NetSuite, eliminating the need for dual data entry and simplifying reconciliation.
                                  Pricing Plans

                                  Melio provides flexible payment options for businesses looking for straightforward online payment solutions.

                                  It has zero monthly fees or subscription costs; it charges only for specific transactions. ACH bank transfers and check delivery are free, but there are fees for other services.

                                  Here’s a breakdown of their charges:

                                  • Mail check — $1.50 (first two are free)
                                  • Pay by card — 2.9%
                                  • Instant transfer — 1.5% (up to $50)
                                  • Fast ACH bank transfer — 1% (up to $30)
                                  • Fast check — $20
                                  • International payments — $20 (flat fee)
                                  Who's It Best For?

                                  Melio shines for small to mid-sized construction businesses that need flexible payment options.

                                  Their system streamlines bill payments to vendors and suppliers, offering extended payment terms to improve cash flow management.

                                  Pros pros

                                  • Free ACH bank transfers
                                  • Built-in payment tracking
                                  • Excellent integration options with popular accounting software
                                  • Features for delegating and controlling payment responsibilities

                                  Cons cons

                                  • Fewer accounting features than other software
                                  • The system focuses mainly on payment
                                  • Processing international payments can be expensive

                                  Read our full Melio review

                                  10. Wave - Best Free Accounting Software

                                  Wave Logo

                                  Best For Best free accounting software
                                  Free Trial Free plan
                                  Price From Starting from $16/month
                                  Top 3 Features Bookkeeping, Sales Tax, Payroll Management
                                  Why We Picked It

                                  Wave offers excellent, basic bookkeeping features for free. You can create and send unlimited bills and invoices, manage them on the go using the mobile app, and generate essential financial reports.

                                  However, it may lack advanced accounting features like project management and inventory tracking, which could be a downside for larger organizations.

                                  Features
                                  • Bookkeeping: It includes journal entries, bank reconciliation statements, customizable charts of accounts, and balance sheets, making it a reliable tool for small businesses to manage their finances.
                                  • Sales Tax: Wave’s sales tax feature allows businesses to easily manage sales tax rates, calculate tax on invoices, and generate sales tax reports.
                                  • Payroll Management: Manage payroll processes efficiently. It includes tools for calculating salaries, generating pay stubs, and filing tax forms.
                                  • Invoice Management: Create professional and customizable invoices, send them directly to clients, and track their status in real-time.
                                  • Expense and Income Tracking: This allows businesses to track their income and expenses easily. It includes tools for linking bank accounts, importing bank statements, and categorizing transactions.
                                  Pricing Plans

                                  Wave features a paid plan alongside its free plan:

                                  Plan Starter Pro
                                  1 month $0/month $16/month
                                  1 year $0/year $170/year
                                  • Starter: The starter plan offers features like invoicing, receipt scanning, and expense tracking, all at no cost. There are processing fees for accepting online payments, but the software itself is completely free to use.
                                  • Pro: For a monthly fee, Wave Pro unlocks features such as automatic bank transaction imports, unlimited receipt scanning, and adding multiple users. It also offers customer support via live chat and email, making it a good option for those needing more guidance.

                                    Wave offers a $22 discount for users on the annual payment plan. Both the free and paid versions charge for transactions, starting at 2.9% + $0.60 per credit card transaction, with the first ten credit card transactions per month.

                                    Who's It Best For?

                                    Wave accounting software is a great fit for smaller construction companies or freelance contractors.

                                    Its user-friendly interface and free basic features like invoicing and expense tracking make it perfect for managing finances without breaking the bank.

                                    Pros pros

                                    • Forever-free plan
                                    • Easy bill recording and unpaid bill management, even in the free version
                                    • Generation of various accounting reports
                                    • Simplified payroll and tax filing

                                    Cons cons

                                    • No bank account connection with the free plan
                                    • Only one user on the free plan
                                    • Not suitable for larger businesses or those with inventory
                                    • No separate income and expense tracking by classes or locations
                                    • Inability to reconcile bank statements with timing differences

                                    Read our full Wave review

                                    The Best Construction Accounting Software Compared

                                    Here's a quick overview of the accounting software on this list, showing the differences between them

                                    Accounting Software Best For Free Trial Starting Price op Features
                                    FreshBooks Invoicing and expense tracking Yes $19/month Customizable Invoicing, Expense Tracking and Reporting, Project Management
                                    Zoho Account Management Yes $15/month Job Costing, Change Order Management, Retainage Tracking
                                    Xero Medium-Sized Construction Businesses Yes $15/month Multi-currency support, robust integration, Bank reconciliation
                                    QuickBooks Cloud-Based Accounting Yes $18/month Cloud Accounting, Account Reporting, Expense Tracking
                                    Bonsai Streamlining Workflows Yes $21/month Budget Tracking, Finance Tracking, Client Portal
                                    Sage New Construction Businesses Yes $58.92/month Cost estimation, Advanced Analytics, Project management
                                    Oracle Netsuite Tax Management No Quote-based Tax Management, Order Management, Fixed Asset Management
                                    TurboTax Tax Filing Yes Custom CPA Guidance, W-2 Income Filing, Tax Refund Tracker
                                    Melio Accounting Payments Yes Transaction fees only International Payments, Bill Capturing, Payment Scheduling
                                    Wave Free Accounting Software Yes $16/month Bookkeeping, Sales Tax, Payroll Management

                                    Methodology

                                    How We Review and Test Accounting Products

                                    To provide our readers with accurate and well-informed recommendations, we test the most popular accounting products on the market to find the best options for you. Our methodology consists of the following criteria:

                                    • Features: We examine the features of each accounting software to determine what capabilities are offered- such as creating, editing, and deleting transactions.
                                    • Compliance: We evaluate accounting software based on whether it offers local compliance when it comes to payroll, taxes, documentation, and more.
                                    • Bank Reconciliation: We test the reconciliation process to ensure transactions match bank statements accurately.
                                    • Multi-Currency Support: We verify the accuracy of currency conversions and transactions in multi-currency environments.
                                    • User Experience: We get hands-on with each product and act as a new user, testing each platform to gain understanding if the platform is easy to use or not.
                                    • Reporting and Documentation: We verify the accuracy of financial reports generated by the software such as balance sheets and income statements.
                                    • Integrations: We evaluate the integrations of each piece of software to determine how well it fits in with other key pieces in a business’s software stack, and whether its functionality can be expanded as required.
                                    • Audit Trails: We ensure the software maintains comprehensive audit trails for tracking changes made to financial data.

                                    Benefits of Using Accounting Tools for Construction

                                    Using the best accounting software designed specifically for the construction industry can provide numerous benefits to streamline financial management and improve profitability.

                                    These specialized tools offer features tailored to the unique needs of construction businesses, such as job costing, progress billing, and change order management. Here are some other benefits:

                                    Error Reduction

                                    Construction accounting software reduces errors by automating reconciliation with bank and credit card statements, minimizing manual data entry mistakes. This boosts data accuracy, saving time and costs.

                                    Effective Project Management

                                    Integrated software simplifies project management by overseeing document management, resource allocation, and project delivery. Cloud storage ensures easy access to project details.

                                    Seamless Task Scheduling

                                    Construction management software provides real-time project maps and schedule updates, sending reminder alerts for deadlines. This ensures everyone stays informed and aligned.

                                    Enhanced Communication

                                    Centralizing project data and streamlining communication eliminates the need for multiple channels. Sharing and commenting capabilities facilitate teamwork, improving collaboration.

                                    Time-Saving Efficiency

                                    Accounting software automates data entry, invoicing, and financial reporting tasks. This eases up administrative processes and frees up time for other tasks.

                                    What Accounting Features Does a Construction Company Need?

                                    Construction companies rely on robust accounting features for efficient financial management. Some of the features to look for when picking accounting software for your construction include:

                                    Job CostingInvoicing and BillingPayroll ManagementProject Management IntegrationCompliance and TaxationActionable Data AnalyticsCustomization

                                    Job Costing: Job Costing helps companies track where their money goes for each project. With this feature, you can easily see how much they spend on materials, labor, equipment, and subcontractors.

                                    Invoicing and Billing: Good construction accounting software makes invoicing and payments more manageable. It helps by creating accurate invoices, tracking payment deadlines, and allowing changes to orders when needed.

                                    Payroll Management: Construction accounting software makes payroll, tax deductions, and regulatory compliance easier. It ensures that employees and subcontractors get paid accurately, reducing errors and legal issues.

                                    Project Management Integration: Connecting financial data with project management progress gives immediate insights into project costs, timelines, and budgets. This helps track resources, spot delays, and prevent going over budget.

                                    Compliance and Taxation: Good construction accounting software must handle industry-specific rules, like sales tax on materials and payroll taxes.

                                    Actionable Data Analytics: Access to data-driven insights is vital for making smart decisions. With strong analytics features, you can better understand things like how profitable a project is, where resources are being used, how costs are behaving, and the overall financial health of your business.

                                    Customization: The best construction accounting software lets you adjust the system to fit your work style, words, and rules. This customization makes everything run smoother, more accurate, and more accessible for everyone because it's built precisely for your firm's needs.

                                    What's the Best Free Accounting Tools for Construction Companies?

                                    Wave software is an excellent choice for the best accounting software for construction businesses. It offers a free plan with features like expense and income tracking, bookkeeping, payroll, and invoice management. The paid plan is affordable at just $16 monthly if you require additional features.

                                    How to Choose a Construction Accounting System

                                    The right accounting software for your construction business can make a big difference in how you manage your finances and the business as a whole. We've listed some key factors to consider when choosing tools for managing your construction projects and finances.

                                    ScalabilityCompatibilitySecurityPriceUsabilityFeatures

                                    Scalability: Choose software that can grow with your business. As you take on more projects and clients, the software should handle more transactions, job costing, bid management, and support multiple users.

                                    Compatibility: Ensure the software works well with your existing software like payroll, budget management tools, tax software, and financial systems. This prevents errors and ensures smooth workflows and accurate information sharing.

                                    Security: Prioritize software with strong security features such as two-factor authentication, data encryption, and regular backups. Check the vendor's history of data breaches to ensure your information is protected.

                                    Price: Accounting software comes in a wide range of prices. Set a budget and choose software within that range. While cheaper options may have fewer features, investing in a more expensive solution can benefit future needs.

                                    Usability: User-friendly software enhances staff efficiency. Avoid complex systems that require extensive training. Look for software with an intuitive interface and easy navigation. Ensure there's reliable customer support for any issues that arise.

                                    Features: Look for essential features for managing your finances and projects. Key features include job costing, project management integration, invoicing, expense tracking, and compliance management. These features help streamline processes and improve overall efficiency.

                                    FAQs

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                                    John Iwuozor
                                    Tech Writer
                                    John Iwuozor
                                    Tech Writer

                                    John Iwuozor is a writer at Techopedia with over three years of experience and expertise covering topics on HR, business software, IT security, and finance for small and medium-sized businesses. His work has been featured on reputable platforms like Forbes Advisor and EsecurityPlanet. Leveraging his background in mathematics and data analysis, he specializes in delivering original and high-quality content with a keen eye for detail and accuracy.