Does your industry matter? Contractor vs Coach vs Retail vs Restaurant - software selection experiences
Been in construction 22 years, and I’m at a crossroads. QuickBooks Desktop is ending support, forcing me to move to cloud. But the more I research, the more I wonder: should I stick with general accounting software (QuickBooks Online) or move to industry-specific construction software?
I’m Derek, general contractor in residential construction. 18 employees (mix of carpenters, electricians, laborers), $2.8M annual revenue, currently on QuickBooks Desktop Contractor Edition which I’ve used for 15 years.
This got me thinking: How much does your specific industry actually matter when choosing accounting software? I’d love to hear experiences from different industries.
My Construction-Specific Needs
Let me outline what’s different about construction accounting vs. general business:
1. Job Costing (Critical)
Every project needs accurate cost tracking:
- Labor hours by trade and by project
- Materials used per job
- Subcontractor costs per job
- Equipment usage and depreciation allocated to jobs
Why it matters:
I bid jobs at $100-500K. If my cost estimates are off by 5%, I either lose money or lose the bid. I need to know actual costs per job to improve future estimates.
Current solution:
QuickBooks Desktop Contractor Edition has job costing. I can see:
- Total costs per job
- Costs by cost type (labor, materials, subs, equipment)
- Actual vs. estimated costs
- Profit margin per job
This is essential. Can’t run a construction business without it.
2. Progress Invoicing / AIA Billing
Construction projects span months. We bill in stages:
- Initial deposit (10-20%)
- Progress payments based on % completion
- Retainage (typically 10% held until final completion)
- Final payment after punch list
We also use AIA (American Institute of Architects) billing forms for commercial jobs. These are industry-standard forms that GCs and owners expect.
Current solution:
QuickBooks Desktop creates AIA G702/G703 forms. Clients expect these formats.
Question: Can general accounting software handle this, or do I need construction-specific software?
3. Change Orders
Construction projects always have changes:
- Owner adds a feature ($5K addition to scope)
- Unforeseen condition requires extra work ($3K unexpected repair)
- Owner removes something from scope ($2K credit)
Need to track:
- Original contract amount
- All change orders (approved and pending)
- Revised contract total
- What’s been billed vs. what’s remaining
Current solution:
QuickBooks Desktop has change order tracking. Works okay but could be better.
4. Retainage Tracking
Most contracts include retainage:
- We invoice $100K for work completed
- Client pays $90K (holding back 10% retainage)
- Retainage released after final inspection and punch list
Need to track:
- Retainage held by client (money we’re owed but hasn’t been paid)
- Retainage we’re holding on subcontractor payments
- When retainage is due to be released
Current solution:
QuickBooks Desktop tracks this. Critical for cash flow management.
5. Equipment Depreciation and Allocation
I own equipment (trucks, excavator, scaffolding, tools):
- Need to depreciate for tax purposes
- Need to allocate equipment costs to specific jobs
- Need to track equipment usage to decide when to replace
Current solution:
QuickBooks Desktop depreciation plus manual allocation. It’s clunky.
6. Subcontractor Management
Most jobs use 5-10 subcontractors:
- Need to track what we owe each sub by job
- Need to issue 1099s at year-end
- Need to track certificates of insurance
- Need to track lien waivers
Current solution:
QuickBooks Desktop tracks payables and 1099s. Certificate and lien waiver tracking is manual (spreadsheets).
7. Permitting and Compliance Costs
Every job has:
- Permit fees
- Inspection fees
- Impact fees
- Compliance costs (environmental, safety, etc.)
Need to track these per job and include in cost estimates for future jobs.
Current solution:
Track as job costs in QuickBooks Desktop. Works fine.
My Software Options
Here’s what I’m evaluating:
Option 1: QuickBooks Online Plus ($85/month)
Pros:
- Familiar (I know QuickBooks)
- Has job costing (using “Projects” feature)
- My accountant loves it (he has 50+ clients on QB)
- $1,020/year is reasonable
- Integrates with everything
Cons:
- Job costing not as robust as Desktop
- AIA billing requires third-party add-on ($30-50/month)
- No construction-specific features (change orders, retainage, equipment tracking less integrated)
- Would need additional tools for some construction needs
Total cost: $85/month + maybe $30-50/month for construction add-ons = $115-135/month = $1,380-1,620/year
Option 2: QuickBooks Online Advanced ($200/month)
Pros:
- All the features of Plus
- Better user permissions (important with 18 employees)
- Better reporting
- Dedicated account team
- Custom workflows
Cons:
- $2,400/year is expensive
- Still not construction-specific
- Still need add-ons for some features
Total cost: $200/month + add-ons = $230-250/month = $2,760-3,000/year
Option 3: Construction-Specific Software (BuilderTrend, CoConstruct, Procore)
BuilderTrend:
- Cost: $299-599/month depending on features
- Includes: Project management + accounting + client portal + scheduling + estimates + selections
- Designed for residential contractors like me
CoConstruct:
- Cost: $399-899/month depending on features
- Similar to BuilderTrend, focused on custom builders and remodelers
Procore:
- Cost: $375-1,000+/month
- More for commercial construction
- Very robust but probably overkill for residential
Pros:
- All construction features built-in (job costing, change orders, retainage, AIA billing, etc.)
- Project management integrated with accounting
- Client portal (clients can see progress, approve change orders, etc.)
- Everything in one system
Cons:
- Expensive ($3,600-10,800/year)
- Learning curve for me and entire team
- My accountant won’t be familiar (might increase accounting fees)
- Might be overkill for my size business
Option 4: QuickBooks Online Plus + Construction Project Management Tool
Setup:
- QuickBooks Online Plus for accounting: $85/month
- BuilderTrend or similar for project management: $99-199/month
- Total: $184-284/month = $2,208-3,408/year
Pros:
- Best-of-breed approach
- Keep QuickBooks for accounting (accountant happy)
- Add construction-specific project management
- Can integrate the two systems
Cons:
- Two systems to manage
- Integration might be imperfect
- Data might be duplicated
- More expensive than Option 1, maybe competitive with Option 3
What I’m Struggling With
Question 1: Is general accounting software “good enough” for construction, or do I really need industry-specific?
I’ve been on QuickBooks Desktop for 15 years. It’s worked. But I’m also wondering: am I doing things the hard way because I don’t know better?
Question 2: How good is QuickBooks Online’s “Projects” feature compared to real construction job costing?
QB advertises “Projects” as their solution for job/project tracking. Reviews are mixed. Some say it’s fine, others say it’s inadequate compared to Desktop or industry software.
Question 3: Is it worth paying 2-3x more for industry-specific software?
QuickBooks Online Plus: ~$1,400/year
BuilderTrend all-in-one: ~$4,000/year
That’s $2,600/year difference. On $2.8M revenue, that’s only 0.1% of revenue. Seems like it should be worth it if the software is better.
But is it actually better, or just more expensive?
Question 4: What happens to my historical data?
I have 15 years of data in QuickBooks Desktop:
- Job costs from hundreds of completed projects
- This data informs my current estimates
- Do I need to migrate all of it, or just recent data?
- Can construction software import QB Desktop data?
Question 5: Will my accountant work with industry-specific software?
My accountant knows QuickBooks inside and out. His fee is $300/month for bookkeeping + $2,500 for taxes.
If I switch to BuilderTrend, he’ll have to learn it. Will he:
- Charge me more?
- Do a worse job because he’s unfamiliar?
- Tell me to switch to QB or find another accountant?
What I’m Asking From This Community
For other contractors or construction folks:
- What software do you use?
- Did you go general (QuickBooks, Xero) or industry-specific (BuilderTrend, CoConstruct)?
- What features actually matter vs. marketing fluff?
- How’s the transition from QuickBooks Desktop been?
For other industries (retail, food service, agencies, etc.):
- Did you choose industry-specific software or general accounting?
- What made you decide?
- Any regrets?
For people who’ve used both general and industry-specific:
- Was the industry software worth the premium price?
- What did you gain vs. lose?
My Gut Feeling
After researching for weeks, here’s where I’m leaning:
Option: QuickBooks Online Plus + lightweight project management tool
Reasoning:
- Stick with QuickBooks for accounting (accountant happy, familiar to me)
- Add construction project management separately (BuilderTrend or similar)
- Best-of-breed approach
- More control (can switch project management tools without disrupting accounting)
- Total cost ~$2,500-3,500/year (middle ground)
But I’m not confident.
Part of me thinks: “Just go all-in on BuilderTrend and simplify to one system.”
Other part thinks: “QuickBooks works, don’t fix what isn’t broken.”
Third part thinks: “You’re being forced to switch from Desktop anyway, might as well evaluate everything.”
Industry Comparison
Would love to hear from different industries:
Retail: Do you use QuickBooks or retail-specific software (Lightspeed, Square for Retail)?
Restaurants: General accounting or restaurant-specific (Toast, TouchBistro)?
E-commerce: QuickBooks or e-commerce accounting tools?
Professional services (lawyers, consultants): General or industry-specific?
Manufacturing: QuickBooks or ERP systems?
Does industry actually matter, or is good general accounting software sufficient for most businesses?
Looking forward to your experiences!
Derek Johnson
General Contractor