The Best Accounting Software for Excavators

February 20, 2024
5
minutes to read
by
Ben Winford
Table of Contents

As an excavation contractor, you know that staying on top of your finances can be challenging. From tracking equipment purchases and maintenance to monitoring job costs and payroll for seasonal workers, there's a lot to keep track of. Fortunately, with the right accounting software, you can streamline your financial management tasks and focus on growing your business.

Understanding the Unique Accounting Needs of Excavators

Contracting in the excavation industry comes with its own set of financial challenges, and traditional accounting software might not be up to the task. With excavators, tracking equipment and asset depreciation is a vital aspect of accounting. And managing job costing and project budgets accurately is critical to business success.

Excavation is a complex industry that requires equipment to get the job done. From bulldozers to backhoes, excavators need to keep track of their equipment and ensure that it is in good working order. Equipment depreciation is a significant expense for excavators, and it's important to keep accurate records of equipment purchases, maintenance, and repairs. With the right software, excavators can easily track equipment depreciation and ensure they are getting the most out of their assets.

Tracking Equipment and Asset Depreciation

Unlike many other industries, the equipment used in excavation tends to have a long lifespan, but that doesn't mean it doesn't depreciate over time. Tracking depreciation and keeping accurate records of equipment purchases, maintenance, and repairs is vital. Look for software that makes this task easy and intuitive.

One of the challenges of tracking equipment depreciation is predicting the useful life of each piece of equipment. Excavators need to consider factors such as the age of the equipment, the frequency of use, and the type of work it is used for. With the right software, excavators can easily track the depreciation of each piece of equipment and make informed decisions about when to replace it.

Managing Job Costing and Project Budgets

In the world of excavation, it can be challenging to accurately predict the cost of a project. Unexpected soil conditions, weather disruptions, and client requests can all cause changes to the project scope and budget. With solid accounting software, you can track project costs, compare actual expenses to budget, and make informed decisions to keep your projects on track.

One of the benefits of using accounting software for excavation is the ability to track job costing. Excavators can easily track the cost of labor, materials, and equipment for each project, allowing them to make informed decisions about pricing and project management. With the right software, excavators can also track the profitability of each project and make adjustments to their business strategy as needed.

Handling Payroll for Seasonal and Contract Workers

Many contractors in this industry rely on seasonal workers or hire independent contractors for projects. This can make payroll processing more complicated than it is in many other industries. You need software that can easily handle deductions, tax reporting, and payment processing for all types of workers.

With the right software, excavators can easily manage payroll for all types of workers. They can track hours worked, calculate payroll taxes, and process payments quickly and accurately. This can help to reduce errors and ensure that workers are paid on time and in full.

In conclusion, with the right accounting software, excavators can easily manage their financial operations and ensure the success of their business. By tracking equipment depreciation, managing job costing and project budgets, and handling payroll for all types of workers, excavators can streamline their operations and focus on what they do best – providing high-quality excavation services to their clients.

Top Features to Look for in Excavation Accounting Software

As you begin your search for the right accounting software for your excavation company, keep these key features in mind.

Integration with Industry-Specific Tools

Excavation contractors often use software for estimating, project management, and other industry-specific tasks. Look for accounting software that can integrate with these tools to streamline your processes and avoid duplicate data entry.

For example, some excavation software programs integrate with GPS systems to track equipment and job site locations. This can help you keep track of your equipment and ensure that your team is working efficiently.

Customisable Invoicing and Billing

Generating invoices and getting paid promptly can be critical to the success of an excavation business. Look for software that lets you customise invoices to reflect specific project details and track billing statuses to ensure prompt payment.

Some excavation software programs also allow you to set up automatic payment reminders and late fee charges. This can help you stay on top of your billing and ensure that you get paid on time.

Robust Reporting and Analytics

Accurate financial reporting is critical to the success of any business, and excavation contracting is no exception. Choose software that provides real-time reporting and analytics to help you make data-driven business decisions.

Some excavation software programs offer customisable reports that allow you to track your expenses, revenue, and profitability by project, client, or time period. This can help you identify areas where you can improve your business processes and increase your profitability.

Cloud-Based Access and Mobile Functionality

Excavation contracting involves a lot of time outside the office, and you need access to your financial information 24/7. Choose software that provides cloud-based access and mobile functionality to track your finances from anywhere, at any time.

Some excavation software programs also offer mobile apps that allow you to track your expenses, generate invoices, and manage your projects from your smartphone or tablet. This can help you stay organised and productive while you're on the go.

Overall, choosing the right excavation accounting software can help you streamline your business processes, improve your financial reporting, and increase your profitability. Keep these key features in mind as you evaluate your options, and choose a software program that meets the unique needs of your excavation company.

Comparing the Best Accounting Software for Excavators

Now that you know what to look for, it's time to compare some of the best accounting software options for excavation contracting companies. But before we dive into the comparison, let's take a moment to understand why accounting software is so important for excavation contractors.

Excavation contracting involves a lot of moving parts, from managing equipment and materials to coordinating with other contractors and meeting project deadlines. With so much to keep track of, it's easy to lose sight of your finances. That's where accounting software comes in - it helps you keep track of your expenses, manage your cash flow, and stay on top of your invoicing and payments.

1. Thriday

Thriday is an excellent accounting software choice for excavators due to its robust automation capabilities. With Thriday, excavators can streamline numerous processes, eliminating manual tasks and saving valuable time. The software automates essential accounting functions like invoicing, expense tracking, and financial reporting. By automating these processes, Thriday minimises human errors and ensures accurate and efficient financial management. This feature-rich software provides excavators with a user-friendly interface, making it easy to navigate and utilise its automation features effectively.

Thriday's automation capabilities make it a valuable tool for excavators, enabling them to focus more on their core business operations while maintaining precise and up-to-date financial records.

Thriday's all-in-one platform

2. Xero

Xero is an accounting software that offers a comprehensive range of features and benefits for businesses of all sizes. Xero integrates with numerous third-party apps and services, allowing data transfer and enhancing overall efficiency. Its collaborative features enable multiple users to access and work on financial data simultaneously, fostering teamwork and enhancing productivity. With its extensive features and automation prowess, Xero is a solid choice for businesses seeking a reliable and efficient accounting solution.

3. MYOB

MYOB is an accounting software that offers a range of features for businesses, but it is considered average compared to some of its competitors. While MYOB provides essential accounting functionalities such as invoicing, expense tracking, and payroll management, it lacks some advanced features and automation capabilities that are increasingly important in today's digital landscape. The user interface of MYOB can be somewhat complex and overwhelming for new users, requiring a learning curve to navigate effectively.

As you can see, there are multiple options when it comes to accounting software for excavation contractors. The key is to find the one that best fits your needs and budget. Whether you're looking for a simple solution or a comprehensive one, there's sure to be a software package that can help you manage your finances more effectively.

Implementing Your Chosen Accounting Software

Once you've found the software that's right for your excavation contracting business, it's time to implement it. This process involves data migration and setup, team training, and ongoing support.

Data Migration and Setup

When it comes to data migration and software setup, it's important to ensure that the process is seamless and that the software is configured to meet your specific business needs. Make sure your accounting software vendor offers assistance to help you transfer your existing financial data into your new system. This will save you time and effort, and ensure that your data is accurate and up-to-date.

During the setup process, take the time to review and customise the software's settings and options. This will help you get the most out of the software and ensure that it's tailored to your business processes. You may also want to consider integrating your accounting software with other business tools, such as project management software or time-tracking tools, to streamline your workflow.

Training Your Team on the New System

Investing time and resources in training your team on the new accounting software is crucial to unlocking its full potential. A knowledgeable team will be able to use all the features and benefits of the software, and will be more efficient and effective in their work.

When it comes to training, it's important to provide a mix of different learning opportunities. This may include online tutorials, in-person training sessions, and hands-on practice with the software. Make sure your team has access to user manuals and other resources that they can refer to as needed.

It's also a good idea to designate a few team members as "super users" who can act as internal experts on the software. These individuals can provide guidance and support to other team members and ensure that the software is being used to its fullest potential.

Ongoing Support and Software Updates

Choosing a vendor that offers responsive support for any technical issues that may arise is essential. Make sure you have access to a dedicated support team that can help you troubleshoot any problems or answer any questions you may have.

In addition to support, it's important to stay up to date with the latest software updates. These updates may include bug fixes, security patches, and new features that can help improve your business processes. Make sure you take advantage of any new features that are released, and consider attending webinars or other training sessions to learn more about how to use them.

Implementing new accounting software can be a big undertaking, but with the right approach, it can help streamline your business processes and improve your bottom line. By focusing on data migration and setup, team training, and ongoing support, you can ensure that your software is a valuable asset to your business.

Key Takeaways

With the right accounting software as part of your excavation contracting arsenal, you can more easily manage your finances, stay on top of your projects, and scale your business. Take the time to find the software that meets your specific needs and provides robust features and support to help keep your business thriving.

DISCLAIMER: Team Thrive Pty Ltd ABN 15 637 676 496 (Thriday) is an authorised representative (No.1297601) of Regional Australia Bank ABN 21 087 650 360  AFSL 241167 (Regional Australia Bank).  Regional Australia Bank is the issuer of the transaction account and debit card available through Thriday. Any information provided by Thriday is general in nature and does not take into account your personal situation. You should consider whether Thriday is appropriate for you.

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