I spent last month talking to 47 subcontractors about their accounting software. The results surprised me.
Almost half were using spreadsheets or basic consumer tools like QuickBooks Simple Start — software that wasn't designed for construction. They were manually tracking retainage, job costing, and work-in-progress in separate spreadsheets that didn't talk to each other.
The other half used construction-specific accounting software, and while they had more robust systems, many were paying for enterprise features they'd never use.
Finding the right accounting software for your subcontracting business isn't just about features — it's about matching the tool to your size, complexity, and growth plans.
Let me break down what's actually out there and help you make a smarter choice.
What Makes Construction Accounting Different?
Before we dive into specific tools, let's understand why general accounting software often falls short for subcontractors.
Job Costing
You need to track costs against specific jobs, not just general expense categories. A plumber doesn't just have "labor costs" — they have labor costs on Job #1234 vs. Job #1235, and those need to be separately tracked.
Retainage
Standard accounting software doesn't understand that 10% of your invoice isn't actually receivable until project completion. Construction tools track retainage as a separate asset category.
Progress Billing
Billing based on percentage complete, with schedules of values and AIA-format applications, requires specialized functionality.
Work-in-Progress (WIP)
Construction accounting requires WIP reporting to understand true profitability — comparing costs incurred to completion percentage.
Certified Payroll
Public projects require certified payroll reports tracking prevailing wages, fringe benefits, and compliance data.
If your accounting software can't handle these requirements natively, you're building workarounds — and workarounds create errors and eat time.
Tier 1: Entry-Level Options (Under $50/month)
QuickBooks Online (Simple Start or Essentials)
Best for: Solo contractors or very small teams (1-3 people) with simple operations
What works:
What's missing:
Cost: $20-55/month depending on tier
Verdict: Fine for a solo contractor doing small residential jobs. You'll outgrow it quickly if you take on commercial work or scale beyond 2-3 simultaneous projects.
Wave Accounting
Best for: Brand new contractors watching every dollar
What works:
What's missing:
Cost: Free (paid add-ons for payroll and payments)
Verdict: Only if you're just starting out and doing the simplest possible jobs. Plan to upgrade within your first year.
Tier 2: Mid-Market Solutions ($50-300/month)
QuickBooks Online Advanced + Job Costing Apps
Best for: Growing subcontractors (5-20 employees) who want to stay in the QuickBooks ecosystem
What works:
What's missing:
Cost: $90-235/month for QuickBooks + $50-200/month for add-ons
Verdict: A solid middle ground. You get enough construction features without the complexity of full construction software.
FreshBooks
Best for: Service-focused contractors who prioritize easy invoicing
What works:
What's missing:
Cost: $17-55/month
Verdict: Better for consultants than subcontractors. Skip unless your work is 100% service-based with no materials.
Xero + WorkflowMax
Best for: Subcontractors who want project management and accounting integrated
What works:
What's missing:
Cost: $13-65/month for Xero + $45/month for WorkflowMax
Verdict: Worth considering if you value project management integration, but you'll still need construction-specific workarounds.
Tier 3: Construction-Specific Software ($200-500/month)
Foundation Software
Best for: Established subcontractors (10-50 employees) doing commercial work
What works:
What's missing:
Cost: $250-500/month depending on modules
Verdict: This is real construction accounting software. If you're doing commercial work with retainage and progress billing, Foundation handles it properly.
Sage 100 Contractor (formerly Master Builder)
Best for: Mid-size to large subcontractors needing comprehensive features
What works:
What's missing:
Cost: $300-600/month
Verdict: Industry standard for a reason. If you're running a serious operation with 20+ employees and complex job costing needs, Sage delivers.
Jonas Premier
Best for: Specialty contractors with complex operations
What works:
What's missing:
Cost: Custom pricing (typically $400-800/month)
Verdict: Excellent if you're a specialty contractor with service agreements, equipment inventory, and complex jobs.
Tier 4: Enterprise Solutions ($500+/month)
Viewpoint Vista
Best for: Large subcontracting operations (50+ employees)
What works:
What's missing:
Cost: $500-2,000+/month
Verdict: If you're a large operation with dedicated accounting staff, Viewpoint is excellent. Overkill for smaller operations.
CMiC
Best for: Very large contractors with complex enterprise needs
This is top-tier enterprise software for contractors with 100+ employees and sophisticated needs. If you're reading this article, it's probably not for you yet.
How to Choose: My Recommendation Framework
Here's how I'd approach the decision:
Solo Contractors (1-3 people, under $500K revenue)
Start with QuickBooks Online Simple Start. Yes, you'll do some job costing in spreadsheets. That's okay for now. Focus on landing work and building your reputation.
Growing Subcontractors (5-15 people, $500K-$2M revenue)
QuickBooks Online Advanced + a construction add-on like Knowify. You'll get job costing, better reporting, and features that scale without the complexity of full construction software.
Established Commercial Subcontractors (15-50 people, $2M-$10M revenue)
Make the jump to Foundation or Sage 100 Contractor. You need real construction accounting features — retainage tracking, WIP reporting, certified payroll. The learning curve is worth it.
Large Operations (50+ people, $10M+ revenue)
You're in enterprise territory. Sage, Viewpoint, or Jonas depending on your specialty. Budget for implementation support.
Integration Matters More Than Features
Here's something most software comparisons miss: integration with your other tools often matters more than raw features.
Your accounting software should talk to:
If you're using SubPaid for invoicing and payment collection, for example, you want that data flowing into your accounting software automatically. Manual data entry creates errors and wastes time.
Ask about integrations before you buy any accounting software. The prettiest features are worthless if you're re-entering data three times.
Frequently Asked Questions
Should I use the same software as my GCs?
Not necessarily. Your accounting needs are different from theirs. What matters is that you can produce the reports and documents they require (pay apps, lien waivers, etc.).
How long does implementation take?
Simple tools: same day. Mid-market: 2-4 weeks. Construction-specific: 1-3 months. Enterprise: 3-6 months.
Can I switch software mid-year?
Yes, but it's easier if you switch at year-end when you can start fresh with opening balances. Mid-year switches require careful data migration.
Should I hire a bookkeeper who knows my software?
Absolutely. Especially for construction-specific software. A bookkeeper who knows Foundation or Sage will set you up correctly from day one.
What about industry-specific payroll?
If you do public projects with prevailing wage requirements, make sure your payroll solution handles certified payroll. This isn't optional — it's legally required.