Top 5 Bookkeeping Software for Small Construction Businesses

Top 5 Bookkeeping Software for Small Construction Businesses
Bookkeeping

Managing finances is one of the biggest challenges for small construction businesses. From tracking job costs to managing cash flow, bookkeeping can be overwhelming. 

In fact, 82% of small business failures are due to cash flow problems, and 91% of construction companies still rely heavily on spreadsheets .

Fortunately, bookkeeping software designed for construction can simplify financial management. This blog explores the top five bookkeeping software solutions tailored for small construction businesses to help you stay profitable and organized.

Importance of Bookkeeping Software for Construction Businesses

The bookkeeping needs of construction businesses are unique. It needs to deal with  job costing, progress billing, subcontractor payments, and unpredictable cash flow. 

Without proper bookkeeping, it’s easy to lose track of expenses, which can lead to cost overruns and shrinking profits.

While generic bookkeeping tools may cover basic accounting, they lack features that would be important to construction from expense tracking on a project by project basis, handling retainage, or managing change orders. So it is important to have construction-specific software so you can allocate every dollar accurately, improve bidding accuracy, and monitor cash flow in real-time.

Top 5 Bookkeeping Software for Small Construction Businesses

1. QuickBooks Online

QuickBooks Online is the most widely used accounting solution for small businesses. While it’s not built solely for construction, it integrates well with specialized construction apps.

Key Features:

  • Tracks project income and expenses
  • Supports progress invoicing
  • Integrates with third-party construction management tools
  • Cloud-based for mobile access

Why It’s Great for Construction: QuickBooks is widely supported, and flexible. While it may lack built-in construction-specific tools, integration with software like OnTraq AI makes it a solid choice for small contractors looking to automate job costing and expense tracking.

2. OnTraq AI

OnTraq AI is an AI-powered financial bookkeeping solution specifically for small contractors, seamlessly integrating with QuickBooks to automate bookkeeping and job costing.

Key Features:

  • Automated Job Costing: Assigns expenses to the correct project instantly
  • GPS Time Sheets: Tracks labor costs accurately
  • Receipt Tracking: Snap receipts and categorize expenses automatically
  • Accounts Payable Management: Organizes vendor invoices and due dates
  • Invoice Management: Automates invoicing and payment tracking

Why It’s Great for Construction: It is easy to use, affordable & has construction specific features. Additionally, the in-built AI eliminates manual data entry, improves financial accuracy, and provides real-time insights into job costs, saving contractors up to 75% of bookkeeping time every month.

3. Sage 100 Contractor

Sage 100 Contractor is built specifically for construction businesses, offering project accounting, job costing, and estimating features in one platform.

Key Features:

  • Advanced job costing and budgeting
  • Payroll with certified payroll reporting
  • Handles retainage, progress billing, and AIA invoicing
  • Equipment and subcontractor cost tracking

Why It’s Great for Construction: Sage 100 provides an all-in-one solution, it is more suited to medium to large contractors & their accounting departments, who need detailed financial control. While there’s a learning curve, it’s one of the best choices for contractors looking to scale their business efficiently.

4. Foundation Software

Foundation is construction-focused accounting software that simplifies job costing and payroll.

Key Features:

  • Strong job cost tracking with real-time reporting
  • Handles union wages, certified payroll, and prevailing wage compliance
  • Construction-specific financial reports (WIP, over/under billings)
  • Mobile time tracking for field employees

Why It’s Great for Construction: If job costing and payroll complexity are your biggest concerns, Foundation is an excellent choice. It’s more complex than QuickBooks & Sage, but offers deeper construction-focused accounting features.

5. Zoho Books

Zoho Books is a cost-effective alternative to QuickBooks, offering essential accounting features with some construction-friendly capabilities.

Key Features:

  • Project-based expense tracking
  • Automated invoicing and expense categorization
  • Mobile app for on-the-go access
  • Affordable pricing, including a free plan for small businesses

Why It’s Great for Construction: For contractors on a budget, Zoho Books provides a good starter bookkeeping solution, but it lacks many features that even small contractors need to manage their business.

Criteria for Selecting the Best Construction Bookkeeping Software

When choosing bookkeeping software for your construction business, consider the following factors:

  • Ease of Use: Can you or your office staff navigate it without extensive training?
  • Job Costing Capabilities: Does it track income and expenses per project?
  • Integration with QuickBooks or Other Systems: Can it sync with payroll, invoicing, or project management tools?
  • Pricing and Scalability: Does it fit your budget and grow with your business?
  • Mobile Access: Can you manage finances from a job site?
  • Industry-Specific Features: Does it handle AIA billing, retainage, and certified payroll?

Preferred Choice For Small Contractors: OnTraq AI

If you’re looking to automate bookkeeping and job costing, OnTraq AI is the solution. Designed to integrate seamlessly with QuickBooks Online, OnTraq AI eliminates manual data entry and provides real-time financial insights.

By combining OnTraq AI with QuickBooks, contractors can cut down bookkeeping time by 75% and gain instant clarity on project profitability.

Visit OnTraq AI to learn more and schedule a demo.

Conclusion

We explored the five top solutions—QuickBooks Online, Sage 100 Contractor, Foundation, Zoho Books, and OnTraq AI—each offering unique benefits. Small to medium size contractors should pick a solution with ease of use & automation that actually saves them time every week. 

Which is why OnTraq AI stands out as a game changer. From bookkeeping to job costing & time tracking, it does it all with ease, saving hours of admin time, so contractors can focus on growing their business instead of being stuck behind a desk.

Frequently Asked Questions

What is the best bookkeeping software for small businesses?

While QuickBooks Online is widely used, OnTraq AI is more suited for construction and reduces manual bookkeeping work.

Can I access my bookkeeping software on mobile devices?

Yes! QuickBooks Online, Zoho Books, and OnTraq AI offer mobile apps to track your finances on the go.

How much does bookkeeping software for construction businesses cost?

Prices range from $55/month for QuickBooks Online to $200+ for Sage 100 Contractor. OnTraq AI offers affordable automation solutions with QuickBooks integration (& also has a free trial)

Is there a free version of bookkeeping software for construction businesses?

Zoho Books & OnTraq AI have free plans

Is QuickBooks better than OnTraq AI?

QuickBooks is a general accounting tool, while OnTraq AI is built for contractors, automating job costing, payroll tracking, and receipt management. Combining both provides the best solution for construction businesses.

What is the future of bookkeeping?

The industry is shifting toward AI automation, real-time insights, and cloud-based solutions like OnTraq AI, that reduce manual work and provide the right financial insights for construction.

By using the right bookkeeping software, small construction businesses can stay profitable, organized, and stress-free. Explore your options and take control of your finances today!