What is the best job costing software for small contractors?
For most small contractors, QuickBooks handles job costing well enough when it’s set up correctly. The software itself isn’t usually the problem. The setup and discipline are.
QuickBooks Online works for contractors running a handful of jobs at a time who want cloud access and simplicity. The Projects feature lets you track income and expenses by job and pull basic profitability reports. For a tile contractor, painter, or small plumbing company doing service work and smaller projects, this is probably enough.
QuickBooks Desktop is better when you need real cost codes and phases. A general contractor building custom homes or running larger remodels needs to track framing labor separately from trim labor, and materials separately from subcontractors within each phase. Desktop handles this more naturally than Online. It’s also faster when you’re processing a high volume of transactions.
Construction-specific software like Buildertrend, CoConstruct, or Jobber makes sense when you need project management features alongside accounting. These platforms combine scheduling, change orders, client communication, and basic financial tracking in one place. The tradeoff is that their accounting features are less robust than QuickBooks. Many contractors use both and sync them or have their bookkeeper in American Fork reconcile between them.
Don’t overthink the software decision. The best job costing software is the one you’ll actually use consistently. A perfectly configured system that nobody updates is worthless compared to a basic QuickBooks file that gets coded correctly every day.
What matters more than the software is that every expense gets coded to a job when it happens, labor hours get tracked by job and phase, and subcontractor invoices hit the correct project before payment. You need to compare budget to actual regularly instead of waiting until the job is done.
The setup matters as much as the software choice. Cost codes need to match how you estimate. Projects need to be structured correctly. Reports need to show what you actually want to see. A QuickBooks ProAdvisor who understands construction job costing can configure this properly in a few hours. Trying to figure it out yourself usually means giving up or ending up with a system that doesn’t work.
If you’re not sure what you need, start with QuickBooks. It’s affordable, widely supported, and handles most small contractor situations. You can always move to something more specialized later. Most contractors under $2-3 million in revenue don’t need anything more sophisticated.
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More Questions
What accounting method should a contractor use?
Most contractors under $30 million in gross receipts use the cash method for tax simplicity and timing flexibility. But accurate job costing often requires tracking revenue and costs on an accrual basis internally.
Read answerWhat is WIP reporting and do I need it?
WIP (Work in Progress) reporting compares what you've billed against what you've actually earned on each project. Contractors with jobs lasting more than a month or two need it to see their true financial position.
Read answerWhat is labor burden and how do I account for it?
Labor burden is the true cost of an employee beyond their hourly wage. It includes payroll taxes, workers' comp, benefits, and paid time off. Accounting for it correctly means applying a burden rate when costing jobs so your bids reflect what labor actually costs you.
Read answerHow do I allocate overhead to individual jobs?
Overhead allocation distributes indirect costs like rent, insurance, and admin expenses across jobs based on labor hours, labor cost, or total direct costs. Calculate a rate using your annual overhead and apply it to each job to see true profitability.
Read answerCan I find a local bookkeeper in Utah County who understands job costing?
Yes, though bookkeepers with genuine job costing expertise are less common than general bookkeepers. Look for someone with actual construction industry experience who can explain how they track costs by job, not just by expense category.
Read answerWhat makes construction bookkeeping different from regular bookkeeping?
Job costing is the main difference. Construction bookkeeping tracks profitability by project, phase, and cost type rather than just overall business performance.
Read answer