When it comes to accounting for construction businesses, using a generic accounting program can result in more confusion than clarity. In this episode of the Cultivating Business Growth Podcast, host Katina Peters, CPA, CGMA, and Virtual CFO, sits down with John Meibers, Vice President and General Manager of Deltek ComputerEase, to discuss the real-world advantages of construction accounting programs built specifically for the industry.
John brings over 30 years of experience in the construction software industry and shares his expert perspective on what contractors are missing out on when they don’t use purpose-built software. From managing real-time job costing to navigating complex payroll and change orders, this episode is a must-listen for contractors, CFOs, and accounting professionals who work with construction clients.
What You’ll Learn in This Episode
- 00:59 – Why general accounting programs fall short in the construction industry
- 04:24 – Key features of industry-specific construction accounting software
- 06:33 – How real-time data improves profitability and cash flow
- 29:37 – Best practices for transitioning to a new accounting system
- 36:27 – How to measure ROI after implementing a construction accounting solution
Why General Accounting Software Isn’t Enough for Construction Companies
Many construction businesses start with general accounting software like QuickBooks—but as they grow, the limitations of these systems become clear. Generic platforms often lack essential controls, require excessive manual input, and don’t offer the reporting contractors need to make proactive decisions.
John explains that these platforms often treat job costing as an afterthought. The result? Disconnected data, inaccurate cost tracking, and major inefficiencies that impact both financial clarity and profitability.
Without a construction-specific accounting program, companies may:
- Spend hours manually reconciling financials and job costs
- Struggle with inaccurate WIP schedules
- Miss opportunities for change order billing
- Fail to track retainage effectively
- Experience payroll compliance issues
What Makes Construction Accounting Programs Different?
Software like Deltek ComputerEase is designed specifically for construction companies. It includes features that meet the day-to-day needs of contractors and provide real-time visibility into financial health.
Some standout features discussed in this episode include:
Real-Time Job Costing
Track labor, materials, and overhead in real time—allowing for smarter decision-making before a job goes over budget.
Built-In WIP Schedules
Produce and analyze WIP reports regularly, not just when required by a bonding agent or bank.
Change Order Management
Track change orders from initiation, not just after they’re approved, helping prevent lost revenue.
Certified Payroll and Prevailing Wage
Easily manage complex payroll requirements across multiple jurisdictions and job sites.
Committed Cost Tracking
Get a complete picture of committed costs, including subcontracts and purchase orders, for better budget forecasting.
Indirect Cost Allocation
Allocate indirect costs like equipment use, insurance, or workers’ comp accurately to each job, ensuring true profitability metrics.
How Real-Time Data Changes the Game
Katina and John dive deep into how timely access to data transforms how construction businesses operate. Instead of looking backward, real-time job costing allows contractors to course-correct during a project.
With better visibility, companies can:
- Adjust bids based on labor and material costs
- Spot and resolve issues before they grow
- Improve cash flow by billing proactively
- Make strategic decisions on staffing and materials
- Eliminate hours of manual spreadsheet work
The shift from reactive to proactive financial management is one of the biggest benefits of implementing the right construction accounting solution.
Successfully Transitioning to a New Construction Accounting System
Switching systems is no small task—but John shares a clear, strategic approach to help companies transition smoothly:
- Commit to the Why
- Stay focused on the long-term benefits to keep the team motivated through change.
- Get Team Buy-In
- Involve everyone—from leadership to your CPA—to ensure alignment and shared goals.
- Plan Your Structure First
- Use this as a chance to clean up your chart of accounts, job number structure, and reporting strategy.
- Roll Out in Phases
- Start by replicating what you were doing in your old system. Then layer in new features over time.
- Involve Your CPA Early
- Working closely with your CPA ensures that the financials, job costs, and reporting stay aligned from the start.
How to Measure ROI on Your New Accounting Software
Upgrading your accounting software should lead to measurable improvements. Some of the best indicators of ROI include:
- Increased efficiency from reduced manual data entry
- Improved cash flow through timely billing and accurate WIP tracking
- Fewer payroll mistakes and associated penalties
- Better-informed job bidding and estimation
- More strategic, data-driven decision-making
Ultimately, contractors will feel the difference—less frustration, smoother processes, and more confidence in their numbers.
Final Thoughts: Invest in the Right Tools for Long-Term Success
If your construction company is growing, your accounting software should grow with you. John and Katina encourage contractors to think of construction accounting programs not just as financial tools—but as business management systems that support better decision-making and profitability.
With the right system in place, you’ll gain back time, reduce costly errors, and position your business for scalable growth.