A note before you read: ABFI doesn't sell software and has no affiliate deals with anyone on this list. We work mostly in QuickBooks Online, so we've tried hard to be fair to the others.
Contractors usually go shopping for software after a bad month: a job that looked profitable turned out not to be, or the bank asked for a WIP schedule and nobody knew what that was. The temptation is to buy the biggest system you can find. Usually the better move is the simplest system that does job costing well, set up properly.
What contractor accounting software has to do
| Must-have | Why | Nice-to-have |
|---|---|---|
| Job costing by cost type | Profit by job, split into labor, materials, subs | Cost codes by phase |
| Labor costs on jobs | Labor is usually the biggest cost | Built-in time tracking from the field |
| Retainage | Track amounts held back | Automatic retainage on progress invoices |
| Progress billing | Bill a percentage of the contract | AIA-style billing forms |
| Reports a bank understands | WIP, job profitability, aging | Built-in WIP schedule |
| Connections | Payroll, project management, bill pay | Field apps |
The shortlist
1. QuickBooks Online (Plus or Advanced): best for most small and mid-size contractors
- What it is: Intuit's cloud accounting software. Plus and Advanced include Projects for job costing [1].
- Best for: contractors who want something affordable that every bookkeeper and CPA knows.
- Strengths: projects with profitability reports, classes for divisions, huge app ecosystem, easy to share with your accountant.
- Watch for: no built-in WIP schedule or certified payroll; progress billing and retainage are basic. Most contractors add a project management tool or a spreadsheet WIP. See QuickBooks Online Plus vs Advanced and our job costing setup guide.
2. Xero: best for contractors who prefer Xero or work with a Xero-focused accountant
- What it is: cloud accounting software with a Projects feature on some plans [2].
- Best for: smaller contractors whose accountant works in Xero.
- Strengths: clean interface, unlimited users on its plans (check current plan details), good bank feeds.
- Watch for: fewer US construction-specific add-ons than QuickBooks. Compare: QuickBooks Online vs Xero.
3. Foundation Software: best for mid-size and larger contractors with complex payroll
- What it is: construction-specific accounting software built for contractors, including job cost, payroll and reporting [3].
- Best for: contractors with union or certified payroll, many concurrent jobs and a dedicated accounting staff.
- Strengths: built for construction from the ground up, including WIP and job cost reporting.
- Watch for: more to learn and maintain than general software. You'll want someone who knows it.
4. Sage construction products (Sage 100 Contractor, Sage Intacct Construction): best for growing firms that want construction depth
- What it is: Sage offers construction-focused accounting products for contractors [4].
- Best for: established contractors moving beyond QuickBooks, especially those with multiple entities or divisions.
- Strengths: deep job cost, construction reporting, scales well.
- Watch for: implementation time and cost. Budget for a partner.
5. Buildertrend or Procore on top of your accounting software: best for running the jobs themselves
- What they are: construction project management platforms. Buildertrend is popular with residential builders and remodelers; Procore with commercial contractors. Both connect to accounting software [5][6].
- Best for: schedules, change orders, budgets, client communication and field updates, feeding costs into QuickBooks or another system.
- Watch for: they're not your general ledger. You still need accounting software and someone reconciling it.
6. Knowify: best for specialty subcontractors on QuickBooks
- What it is: job management software for trade contractors, with QuickBooks integration [7].
- Best for: electrical, plumbing, HVAC and other specialty subs who want estimating, progress billing and job costing connected to QuickBooks.
- Watch for: another system to keep in sync. Decide which system is the source of truth for each piece of data.
Which one at which size?
| Your business | Usual best fit |
|---|---|
| Solo or small crew, simple jobs | QuickBooks Online Plus (or Xero) |
| Growing, several crews, change orders | QuickBooks Online Plus or Advanced plus a project tool (Buildertrend, Knowify) |
| Commercial work, retainage, bonding | QuickBooks Online Advanced plus Procore, with a monthly WIP schedule |
| Large, union or certified payroll, many concurrent jobs | Construction-specific accounting (Foundation, Sage) |
Still on QuickBooks Desktop? See QuickBooks Online vs Desktop before you decide.
Software doesn't do job costing. Setup and habits do.
The same software produces great job reports for one contractor and nonsense for another. The difference is the chart of accounts, tagging every cost to a job, getting labor onto jobs, and someone reviewing it monthly. Start with our contractor chart of accounts and WIP schedule guide.
Want someone to run it for you?
If you'd rather not run the software yourself, see the best bookkeeping services for contractors, or read DIY QuickBooks vs a bookkeeping service. ABFI's contractor accounting runs inside QuickBooks Online with job costing, WIP and a monthly close.
Keep reading
- How to set up job costing in QuickBooks Online
- The small business accounting tech stack
- Best bookkeeping services for contractors
Sources
- Intuit, QuickBooks Online plans and pricing, quickbooks.intuit.com/pricing. Checked November 6, 2026.
- Xero, US pricing and features, www.xero.com/us/pricing-plans. Checked November 6, 2026.
- Foundation Software, company website, www.foundationsoft.com. Checked November 6, 2026.
- Sage, construction and real estate products, www.sage.com/en-us/industries/construction-real-estate. Checked November 6, 2026.
- Buildertrend, company website, buildertrend.com. Checked November 6, 2026.
- Procore, company website, www.procore.com. Checked November 6, 2026.
- Knowify, company website, knowify.com. Checked November 6, 2026.
Questions owners ask
Is QuickBooks good for contractors?
Yes, for most small and mid-size contractors. QuickBooks Online Plus or Advanced handles job costing through Projects. Larger contractors with complex payroll often outgrow it.
What's the best construction accounting software for a small contractor?
Usually QuickBooks Online Plus, set up with a contractor chart of accounts and job costing, plus a project tool if you need schedules and change orders.
Do I need construction-specific accounting software?
Not until complexity demands it: union or certified payroll, many concurrent jobs, or a full accounting team. Before that, general software set up well is usually enough.
Is Procore accounting software?
No. Procore is project management software that connects to accounting systems. You still need a general ledger like QuickBooks or Sage.
Does any software produce a WIP schedule automatically?
Construction-specific systems usually do. With QuickBooks, most contractors build a monthly WIP schedule in a spreadsheet from job reports.
Want job reports you can trust, whatever the software?
ABFI sets up job costing and closes contractors' books monthly. Start with a complimentary Business Accounting Diagnostic.