Accurate accounting is key in construction, helping you meet tight requirements and manage costs effectively. With regulations like Making Tax Digital (MTD) and Construction Industry Scheme (CIS) imposing stringent reporting rules on builders, a compliant and intuitive accounting system is not a luxury, but rather a necessity.
We’ve identified these essential factors to consider when purchasing accounting software for your construction company that will drive growth in today’s evolving landscape.
In an industry like construction, which is characterised by rapid growth, constant change, and fluctuations, the importance of scalability in your accounting software cannot be overstated.
Your software must effortlessly expand in response to your business’s changing demands, so consider whether it can accommodate incremental growth with the potential for doubling or even tripling in size.
Scalability guarantees that as your construction company progresses, the software seamlessly adapts to accommodate a surge in users, transactions, projects, and overall operations, all without compromising performance or efficiency.
Whether it’s coping with increased data volumes or integrating new functionalities and users, a scalable solution is indispensable.
When considering accounting software, prioritise security as the utmost concern, especially when dealing with sensitive financial and business data. Look for top-grade encryption at every level, which ensures data remains protected during transmission and storage.
Role-based access controls ensure users see and do only what their job requires, keeping your data secure. This limits unauthorised access within the system. Multi-factor authentication adds another level of protection by requiring more than just a password to log in.
Regular security updates and patches are essential for addressing vulnerabilities promptly, and detailed audit trails provide transparency into any changes made within the software.
These measures together fortify your company’s financial data integrity, offering peace of mind and protection against potential data breaches or misuse.
Usability testing and user-friendliness should be key factors to consider when purchasing accounting software. Even full-featured software can lead to frustration and mistakes if the interface is confusing or unintuitive for regular users.
We recommend exploring the accounting platform through personalised demonstrations to truly understand its usability and workflow. Employees should be able to quickly and easily enter transactions, generate reports, reconcile accounts, and access the features they need without complicated menus or navigation.
Prioritising accounting software that is designed for ease of use and tailored for specific roles will result in time savings, fewer errors, and better financial insights compared to platforms that sacrifice usability.
Compliance should be a top priority when considering accounting software to mitigate legal and financial risks. The system needs to fully support Making Tax Digital (MTD) for seamless digital tax submissions, align with the Construction Industry Scheme (CIS) to accurately manage contractor deductions, and enable GDPR adherence through robust data security, access controls, and consent features.
Construction-specific software designed to facilitate regulatory compliance will prevent issues with HMRC audits and potential penalties that could damage your business’s reputation.
The right accounting platform proactively enables adherence, giving you confidence your sensitive data and obligations are covered.
5. Industry Integrations
Choose accounting software purpose-built for the construction sector that provides seamless integration with specific regulations such as MTD, CIS, and digital filing to HMRC. These tailored integrations ensure compliance and efficient workflows, eliminating the need for manual workarounds.
Look for software with native connections to other construction-related tools like payroll, invoicing, materials suppliers, and project management. These integrations optimise data flows and streamline daily operations without costly custom workarounds.
Industry-specific solutions enhance operational efficiency, ensuring your accounting system aligns seamlessly with critical regulations and workflows unique to the construction industry.
Generic software may not meet the sector’s distinct needs, making specialised integrations a strategic choice for hassle-free compliance and improved productivity.
6. Customer Support
Even the most intuitive software may require assistance, and having access to knowledgeable and competent support staff ensures a seamless user experience. Accounting platforms can offer various support channels, including phone, email, live chat, knowledge bases, and user communities.
Opt for a provider that is known for its accessible UK customer support team, guaranteeing timely resolutions and peace of mind. This local support should align with your business hours, ensuring convenient assistance is available when needed.
The quality of support is crucial, demonstrating the provider’s commitment to customer satisfaction. Evaluate responsiveness, expertise, and accessibility alongside software capabilities to make an informed decision.
7. Digital Capabilities
When selecting accounting software, carefully assess the digital capabilities that are essential for your financial operations. Cloud-based systems offer flexibility and accessibility, enabling you to manage finances from anywhere with real-time collaboration. In contrast, locally hosted options may provide more data control but can limit accessibility and require extra maintenance.
Making the right choice between cloud and locally hosted solutions depends on your infrastructure, integration requirements, and mobile work preferences
Consider features such as automated data backups, seamless integration with other business systems, and user-friendly interfaces that simplify complex financial tasks.
These capabilities significantly impact your daily operations by streamlining processes, improving efficiency, and ensuring compliance with evolving financial regulations.
RedSky: The Complete Accounting Software Solution
We understand the unique needs of construction businesses, which is why we designed our Award-Winning Accounting Software from the ground up with our industry in mind. We seamlessly integrate essential functions like job costing, payroll and ledger management to give you total visibility and control over financial operations.
Our software enables you to track costs and revenues down to the finest detail, ensuring projects are managed accurately and timely, whilst ensuring stringent compliance with industry regulations through features such as our HMRC-recognised MTD module.
Where others only provide a platform, we offer robust, long-term support, including comprehensive training, dedicated teams, and regular updates, ensuring our software stays aligned with the evolving standards of the construction sector.