This summer we are embarking on a summer blog series looking at technologies that are making an impact in the construction industry. We have explored emerging technologies like generative AI (artificial intelligence) and the metaverse and we have looked at core construction business processes like project management and estimating that are enabled by technologies. Today, let’s explore accounting and job costing.
Accounting and job costing are perhaps one of the most foundational processes in the construction industry, as they enable businesses to keep track of expenses for projects. The data collected here is critical for a number of reasons: it ensures the project runs on budget and the information could theoretically be used to better plan for similar projects in the future. Certainly, ERP (enterprise-resource planning) solutions combine many of the core components of a business including project management and accounting.
With all this in mind, technology becomes essential to manage and track all of this. Looking to the future, various firms predict some growth that points to various industry trends for the construction industry.
For instance, The Insight Partners released a new report at the end of 2022 that suggests the construction accounting software market is expected to grow 6.3% from 2022 to 2028, noting the overall booming construction industry spurred by the rise of infrastructure projects and the need for more advanced technologies as two driving factors. North America holds the largest share of the market.
This report suggests the largely untapped market among small construction firms is anticipated to drive the construction accounting software market in the days ahead. A key trend to watch in this area is continued enhancement of data security to prevent data loss.
A more recent report from this year from 360 Market Updates suggests even greater growth for the construction accounting software market. This organization expects the market to expand at a rate of 11.94% from 2021 to 2027. This report digs into a macro-overview of the market size and market dynamics by type, application, and region.
All in all, we know accounting and job costing are a key component to every construction business. Today’s construction company is grappling with how best to access, leverage, and share the accounting data in a way that fits with the needs of the organization. Cloud, on-premises, and hybrid are still big talking points—as is how to secure all this critical data.
As we move into a new era of innovation, status quo will no longer work if construction companies want to remain competitive. Advancing solutions will be essential to win more bids and keep projects on time and on budget, all while keeping them secure.
Do you have transformative accounting technology designed specifically for the construction industry? We want to hear about it! Soon we will have a call to entry for our 2024 Constructech Top Products award program. Make sure to enter your product for consideration.
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