What are the Top Financial Features to Look for in Construction Software?

In fact, the UK is ranked as the “worst major market for profit margins,” according to a 2021 study, at just 3.9%.

That’s where construction financial software comes in. It helps companies keep track of every penny, maximising profitability. But it goes beyond just project tracking — it enables full financial visibility, from invoices to material costs. So, there’s no unexpected surprises.

But what features should you look for in financial software for construction firms? Here’s a comprehensive list:

Best Features to Look for in Construction Finance Software

Real-Time Job Costing

The biggest factor in construction finance is fluctuating costs. Companies might estimate a cost at the beginning of a project, only to find the materials have nearly doubled in price a year later. (That’s especially true of recent years.)

The solution? Real-time job costing keeps track of costs as and when they happen. It breaks down the expenditure by labour, materials, equipment, and subcontractors, preventing budget overruns and supporting fast decision-making.

Budgeting and Forecasting Tools

There’s an old saying: “No plan survives first contact with the enemy.” Construction companies might say the same about their budgets.

The issue is that budgets often use inaccurate data and estimates. The best construction finance software pulls from historical data, using forecasting tools to project cash flow and future profitability. This prevents awkward situations where businesses don’t have enough cash on hand to pay their liabilities.

The most advanced systems automatically adjust their forecasts when orders change or unexpected costs occur. The change ripples through the system, updating everything that’s relevant.

Integrated Accounting Capabilities

Too often, finance teams in construction firms find themselves juggling separate systems. There’s one system for project management, another for accounting, and even more to handle vendors and invoices… and on and on it goes.

This leads to duplicate data entry, higher risk of errors, and wasted time reconciling figures. It’s just plain inefficient.

The right construction management software brings everything together onto a single, connected platform. There’s no need to re-enter invoices or payment data. The built-in accounting modules and seamless integration handle the heavy lifting.

Change Order Management

Change orders are a costly part of the construction sector. The client decides they’re not happy with a part of the design and requests an alteration.

But it’s not just a headache for the architect — the finance team struggles as well. Missed approvals, untracked work, or delayed billing all result in lost revenue.

Look for finance software in construction that includes dedicated change order management tools. These tools logged every change, automatically updating budgets, forecasts, and cost reports. It saves a lot of time and ensures everything is billed and documented correctly.

Progress Billing & Retainage Support

In construction, you rarely get paid in one lump sum. Payments are usually spread across milestones, with a chunk of the money (retainage) held back until the end.

If you’re tracking all that in spreadsheets, it’s far too easy to miss an invoice or lose track of what’s still owed. Good construction finance software automates the process. It generates invoices as each stage is completed and keeps a running total of retainage amounts.

The result? You keep cash flow steady, avoid awkward payment disputes, and always know exactly where you stand.

Integration with Existing and Bidding Tools

While the best construction finance software handles most features itself, it can’t do everything. That’s where integrations are crucial.

You want your new platform to slot alongside your other tools seamlessly. That could be estimating software, bidding or tender platforms, and ERP systems. The right finance software pulls and pushes data from these other systems, reducing your workload. No retyping. No copy-paste errors.

It also means that as your project moves forward, the actual costs can be compared against the original bid. It sounds simple. But it can make or break a project’s success.

Audit Trails and Compliance Tracking

Compliance requires proof.

Previously, companies relied on long email chains, attached PDFs, and specific tracking systems to prove how and where they spent their money. That’s not a very good system.
Finance software in construction pulls everything into one centralised location. It keeps track of all transactions and documents, monitoring changes and approvals. You can see who said what, when, and what it relates to.

It also prevents confusion. Often, errors arise when communication gets tangled. With clear audit trails, you can ensure all parties are on the same page.

Mobile Financial Reporting and Dashboards

Perhaps the best (and most relevant) feature is mobile financial reporting and dashboards. Since the pandemic, the rise of work-from-home culture has forced companies to adopt mobile and remote technologies.

However, for the construction sector, this was always necessary. Teams might operate from sites, the office, at home, or somewhere else. Accessing real-time financial data is crucial to accurate decision-making.

Nor do stakeholders want to pore over detailed spreadsheets. Dashboards provide a complete overview of a project at a glance. So, field teams and execs can make informed decisions or react to problems without heading back to the office.

Final Thoughts

The right construction finance software can transform your business. That might sound like an overstatement — it’s not.

The ability to track every transaction, monitor fluctuating costs, and access it all in real-time from anywhere is revolutionary. It allows businesses to sidestep problems that would previously have set projects back months. That means greater profitability, faster construction times, and more satisfied clients.

4PS Construct packs all these features into our financial software for construction firms. From mobile financial reporting to seamless integration, we’ve got you covered. Request a free demo to see how the platform functions in action.