The ROI of Construction-Specific Accounting Software
Sticker shock is real when construction companies first explore purpose-built accounting software like Sage 100 or Sage Intacct. For teams that have relied on QuickBooks or Excel for years, the jump in cost can feel like a luxury purchase. But here’s the reality: it's not a luxury—it’s an investment. And it’s one that consistently delivers a measurable return.
Let’s Talk Numbers
There are many variables that can make a project fall outside of the typical cost range, but we can provide a ballpark range for a Sage 100 implementation based on our experience at Sockeye. Many of these projects land between $12,000 and $20,000 in the first year, covering setup, data migration, and training. Ongoing costs range from $6,000 to $10,000 per year, depending on user count and any custom development.
Sage Intacct, designed for more complex needs, starts at $25,000 to $30,000 for the software alone. Most construction companies spend closer to $30,000 to $60,000 on licensing, with implementation and training costs adding 1x to 1.5x the software cost—often spread over three years.
It’s a leap for sure, but it pays for itself in ways QuickBooks and Excel never could. Here are just a few of the ways our clients recoup the costs of construction accounting software.
Recapture Lost Revenue
Change order management is one of the biggest silent killers of profit for growing construction firms. In smaller shops, change orders often live in the foreperson's memory—or in a forgotten notebook. Miss just one $20,000 change order, and you've eaten that profit entirely. These lapses multiply as your business grows. Construction-specific software captures and tracks every change order, ensuring you bill what you’ve earned and don’t absorb unnecessary costs.
Avoid Unnecessary Headcount
When financial operations start breaking down, the knee-jerk reaction is often to hire another accounting team member. But with total compensation for an experienced construction accountant running $75K to $100K per year, it’s worth asking: could a better system fix the bottleneck instead? In many cases, upgrading your software reduces manual work to the point where your current team can scale without adding headcount.
Give Project Managers Back Their Time
Forecasting is another time sink. Project managers often spend 20 to 40 hours per month manipulating spreadsheets to project costs and revenue. With Intacct, forecasting and work-in-progress (WIP) reporting are built in. Project managers can produce forecasts with a few clicks. If you had five PMs spending 20 hours a month, and you give them back that time, that’s 100 hours each month that they can spend focusing on the project itself.
A Tool That Pays for Itself
Construction-specific accounting software isn’t just a back-office upgrade—it’s operational equipment, just like a backhoe. It enables you to take on more complex jobs, bill faster, reduce errors, and improve profitability. Our customers commonly report efficiency gains of about 30% to 40% after switching from generic accounting systems.
Waiting until your systems are stretched to the limit makes implementation harder and costlier. Upgrading while your team and finances are still relatively lean allows for a smoother transition and positions you for rapid growth. Plus, the earlier you implement, the sooner you’ll start seeing returns.
Ready to see if Sage Intacct or Sage 100 Contractor is right for you? I’d love to help you weigh the options and map out a cost-effective implementation plan that delivers lasting ROI.