Picking the Right Software for Your Business

Q:
I am using the standard version of a popular small business software application. I’m considering upgrading to their contractor version as their current version forces me to do job costing manually. I have read about other construction programs, but they all come with a steeper price tag. Can you provide any feedback? Are there any areas where this contractor version falls short?

Don

A:
Comparing the contractor’s version of this generic, off-the-shelf accounting system is like comparing a shovel to a backhoe.  You can dig a hole with the shovel, but it won’t be as easy or efficient.  For small jobs, a shovel may work, yet there are many other things you won’t be able to accomplish unless you upgrade to a backhoe.

Simply adding “contractor version” to small business software does not mean that the software works the way you need it to work.  Chances are you will get a few additional contractor-like features, but you will still need to do job costing manually because the program has only limited reporting and is not a fully-integrated job cost system.

If you’re looking for a system that can handle construction-specific issues (such as AIA billing, prevailing wage and union reporting, multi-state payroll, retainage, committed cost, change orders, etc.) then you need more than just an off-the-shelf system. Contractor version or not, don’t buy a shovel when only a backhoe will do.

Fred

Construction Business Owner, March 2009