The Best Accounting Software for Construction Companies: Features, Costs & Setup Tips
- bes Accountancy Services
- May 4
- 6 min read
In the dynamic world of construction, managing finances can be just as demanding as managing a job site. Contractors, builders, and developers need accurate, efficient, and compliant accounting systems to handle payroll, VAT, CIS deductions, and bookkeeping. In 2025, cloud-based accounting software tailored for the construction industry is not just a convenience—it's a necessity.
As a leading construction accountant in London, BES Accountancy Services supports clients across Central, North, East, South, and Greater London in choosing, implementing, and maintaining the best accounting software for their businesses. This blog explores the top software platforms available today, including their features, pricing, suitability for construction companies, and expert setup tips.
Why Accounting Software Matters in Construction
Construction accounting involves more than simple income and expense tracking. It requires job costing, subcontractor compliance, cash flow management, payroll processing, and VAT calculations. An off-the-shelf software package may fall short if it doesn't cater specifically to these needs.
Benefits of using specialised software include:
Improved accuracy in job costing and budgeting
Real-time financial visibility
Better compliance with CIS and VAT regulations
Simplified payroll and subcontractor payments
Easy generation of reports for financial planning and audits
At BES Accountancy Services, we support construction companies in adopting the right accounting software by providing expert guidance, setup support, and tailored reporting tools—helping you move from reactive bookkeeping to proactive financial control.
Key Features to Look for in Construction Accounting Software
When selecting software, construction firms should look for the following essential features:
CIS Support: Automated CIS deductions, verification, and monthly returns
Job Costing: Ability to track income, labour, and material costs per project
Payroll Integration: Built-in or compatible payroll modules that handle construction-specific needs
VAT Reverse Charge: Support for the VAT reverse charge mechanism for B2B construction services
Cloud-Based Access: Ability to access data on-site or remotely
Integration: Compatibility with invoicing, CRM, inventory, or project management tools
Trust the experts at BES Accountancy Services to handle your books with precision, so you can focus on growing your business with confidence.
Top 5 Accounting Software Solutions for Construction Companies in 2025
1. QuickBooks Online (Plus & Advanced)
QuickBooks remains one of the most popular tools for small to medium-sized construction businesses.
Key Features:
Cloud-based and MTD compliant
Job and project costing
CIS module add-ons
Customisable invoices and time tracking
Pros:
User-friendly interface
Robust support and community
Strong integration with third-party apps
Cons:
CIS features require third-party integrations
Typical Cost: £25 to £70/month, depending on plan
Best for: Sole traders, contractors, and small construction firms in London looking for flexibility and mobile access.
2. Xero with CIS Setup
Xero is a favourite for businesses prioritising automation and customisation. It works well with subcontractor-heavy operations.
Key Features:
Built-in CIS compliance and reporting tools
Real-time collaboration with accountants
Automated bank feeds and reconciliation
Advanced reporting features
Pros:
Excellent UI and user experience
Seamless integration with project management tools
Cons:
Learning curve for setup and customisation
Typical Cost: £30 to £52/month
Best for: Growing construction SMEs and contractors in East and South London that require scalable solutions.
3. Sage 50cloud Construction
Sage is known for its power in complex accounting and payroll. The construction version is purpose-built for industry-specific needs.
Key Features:
Advanced job costing and subcontractor management
Payroll and HR integration
CIS and VAT reverse charge functionality
Pros:
Strong audit trail features
Scalable for medium to large companies
Cons:
Heavier learning curve
Requires more IT setup compared to cloud-native tools
Typical Cost: £60 to £150+/month (with custom quotes for larger firms)
Best for: Established construction companies and property developers across Greater London.
4. FreeAgent
FreeAgent is great for freelancers and sole traders. While not built solely for construction, it supports many core functions.
Key Features:
Simple expense tracking and invoicing
Time tracking and cash flow dashboards
MTD-compliant VAT submissions
Pros:
Easy to use and affordable
HMRC-recognised software
Cons:
Limited job costing and CIS support
Typical Cost: £14.50 to £29/month
Best for: Freelance builders and independent contractors across London.
5. KashFlow Construction
Tailored to UK-based construction businesses, KashFlow offers comprehensive compliance tools.
Key Features:
Full CIS management and VAT reverse charge features
Project-based accounting
Payroll and auto-enrolment support
Pros:
Designed for the UK market
Direct HMRC integration
Cons:
Less intuitive interface
Typical Cost: £30 to £60/month
Best for: Small to mid-sized building firms looking for a UK-first accounting solution.
Related:
We’re excited to announce a strategic partnership between BES Accountancy Services and MERX Marketing — bringing together financial expertise and cutting-edge marketing solutions to help businesses not only stay compliant and profitable but also grow their brand visibility and reach.
Choosing the Right Software: What to Consider
Selecting the right accounting software involves much more than simply comparing features or choosing the most popular brand. Construction companies need to begin by evaluating the size and complexity of their business. A larger firm with multiple job sites, subcontractors, and departments will likely need a more robust, scalable platform—potentially with customisation options. Conversely, a sole trader or small contractor may benefit more from a lightweight, easy-to-use tool.
It’s also vital to consider the scope of your VAT and CIS obligations. Some accounting platforms provide partial support that may still require manual intervention, while others automate these processes entirely. Businesses should ensure their chosen software handles compliance requirements without additional plugins or workarounds.
Your team’s experience and comfort with digital systems is another important factor. Investing in advanced features is only effective if your staff can navigate the software confidently. Intuitive user interfaces, mobile accessibility, and good customer support should not be overlooked.
Finally, integration capabilities are essential. Many construction businesses already use project management, CRM, or payroll platforms. Selecting accounting software that integrates seamlessly can reduce duplication, prevent errors, and save considerable admin time.
Budget, while important, should be viewed in terms of long-term value rather than short-term cost. It’s worth factoring in not just the subscription fee, but also training, accountant support, and future scalability.
Expert Setup Tips from BES Accountancy Services
At BES Accountancy Services, we understand that adopting new software can be daunting—especially for busy construction professionals focused on delivering quality projects. That’s why we offer hands-on support at every stage of the process.
We start by conducting a personalised consultation to understand your business structure, challenges, and goals. Based on this, we compare leading software options and recommend the one best suited to your current and future needs. This ensures that the platform you adopt is not just functional, but strategic.
Our expert team then assists with initial setup, including CIS and VAT configuration, chart of accounts creation, and importing existing data where necessary. We ensure your system is aligned with Making Tax Digital (MTD) requirements and integrated with other tools you may already be using.
We also provide in-house and remote training for your staff, tailored to your preferred software and business processes. Ongoing support is available year-round, from answering quick questions to troubleshooting and system updates.
Beyond setup, we regularly review your reports and workflows to ensure your financial data remains accurate, timely, and insightful. Whether you’re in North London, Central London or further afield, BES is committed to making your accounting software investment worthwhile and worry-free.
Why BES is London’s Construction Accounting Software Specialist
With deep experience in both accounting and the construction industry, BES Accountancy Services offers:
Custom software implementation for construction firms
Cloud accounting support for mobile workforces
Payroll, VAT, CIS, and bookkeeping services under one roof
Local insight with national reach
Whether you’re based in Tower Hamlets, Islington, Croydon or Camden, our team is here to ensure your financial systems work as hard as you do.
Conclusion: Streamline and Scale with the Right Tools
In 2025, the right accounting software does more than record transactions. It helps construction companies save time, reduce tax burdens, improve cash flow, and stay compliant with industry regulations.
Partner with BES Accountancy Services to select and set up the best accounting software for your construction business. We are here to provide guidance, training, and ongoing support tailored to your needs.
Contact us today to schedule a free consultation. Our expert team is here to support your success with tailored accounting solutions for every stage of your business journey.
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