IT systems and packages can be a minefield for a contracting business. Many contracting businesses do not have an IT strategy for keeping track of all the information which impacts upon their numbers. Initially they make do with applications they know, then realise this is not working and start looking for a solution. IT strategies should develop in line with the growth of a business — but having the long-term size of the business in mind from the start helps with developing the right approach.
The Starting Point
At the establishment stage, most businesses use packages they are already familiar with — typically an MS Office package and a cloud-based accounting package such as Xero or QuickBooks. These are generic to all businesses and have no specific contracting bias. Setting up spreadsheets and templates works in the early days, but it is where a business will stay if they do not intend to grow.
The All-Rounder Approach: Integrated Construction Software
If the business owner decides to get a package that does everything, they are likely to choose one that integrates with their existing accounts package to save re-entering data. Popular all-rounder options for contracting businesses include SimPro, BuilderTrend, Procore, Tradify, and Xero Projects. Whilst these packages appear to solve all issues, they each suit different business types, so selecting one can be difficult if a business is not clear on its requirements.
The Specialist Approach: Best-of-Breed by Function
The alternative is to select separate packages aligned to specific job functions in a contracting business. The accounts package stays as Xero or QuickBooks, and specialist software handles each function:
- Estimating: ConQuest (commercial works) or Price a Job (residential)
- Planning: PowerProject
- QS and CVR management: Planyard
- Snagging: PlanRadar
- Site records: FieldView or FieldWire
- Document control: Viewpoint for Projects
These packages can be standalone or partially integrated, but generally require some manual intervention. As not every project is secured, lost tenders are not entered into the system, keeping things lean.
When to Move to an Enterprise System
At some point, as a business scales up with more offices and more people entering financial data, packages such as Xero may start to struggle — Xero’s invoicing was designed to handle no more than around 2,000 total invoices per month. At this point a more robust accounts system is required and a business should move to an Enterprise Resource Planning (ERP) system. If you are taking your first steps with improving your IT systems and would like to review your current setup, establish what processes you require, and find the best fit for your stage of growth, please get in touch for a no-obligation discussion.
