Managing finances is not always easy in the construction business.
Fluctuating material costs or weather-related project delays can cause cash flow disruptions, affecting your bottom line.
Other aspects, however, are within your control, such as coordinating payments and invoicing across subcontractors, suppliers, and project owners.
Diligence and precise tracking are required to avoid costly errors, and this is where invoicing software solutions can step in to help address these challenges.
That’s why we assembled this list.
Read on to learn more about the top seven tools that streamline invoicing processes for contractors.
Top picks
- PandaDoc: Best invoice customization and e-signing functionality
- Square: Best payment processing features
- FreshBooks: Best for project management
- QuickBooks: Best accounting and financial management features
- Xero: Best cloud-based ecosystem with extensive integration capabilities
- Procore: Best for construction management functionality
- Zoho Invoice: Best for an integrated suite of business applications
How contractors benefit from invoicing software
Automated invoice management can help construction companies ensure accurate and timely billing for services rendered (billable hours) and materials procured (supply cost), ensuring:
Efficiency and time savings
Automation around invoice creation, processing, and sending allows contractors to reduce the billing cycle.
And integration with third-party tools like CRMs and accounting software ensures easy financial management and reconciliation.
Improved cash flow management
Regular and timely invoicing, automated payment reminders for due and overdue payments, and real-time tracking of retention amounts — this is how invoicing and accounting software helps maintain financial stability.
Accuracy
Invoicing apps ensure automated calculations, data entry, and field validation, minimizing human errors and discrepancies as well as keeping the financial data always up-to-date.
Customer satisfaction
Professional-looking invoices are always good for the company’s reputation, and client portal functionality ensures transparency into billing details to reduce the risks of disputes and enhance customer trust.
Top 7 invoicing software solutions for contractors
1. PandaDoc
PandaDoc invoicing software helps contracting businesses easily create, process, edit, e-sign, send, and track invoices and contracts in minutes, making the billing process a breeze.
Key invoicing features:
- Easy-to-customize invoice templates with personalized branding that can be filled with GIFs, multimedia, interactive pricing tables, and more.
- Audit trail functionality enables contractors to track any changes made in the invoice, including the information about when it was opened, read, sent, or paid.
- Customizable templates for various types of construction contracts, including subcontractor agreements, client contracts, and change orders, are available to ensure consistency and accelerate payments.
- PandaDoc easily integrates with an array of payment options like debit/credit cards, PayPal, ACH, Square, Stripe, etc.
- Pairing with CRMs such as Zoho and HubSpot allows for pulling up customer data and other sales information to build a comprehensive and automatically updated invoice management software.
- E-signing features allow contractors to sign invoices electronically, helping speed up the approval process, reduce delays in the billing workflow, and minimize the administrative burden of document management.
- Auto-reminders control upcoming, due, or overdue invoices. Contractors can send clients notifications a couple of days before the invoice is due to give them a heads-up.
Pros:
- Real-time invoice status tracking and analytics
- Automated reminders and recurring payments
- Customizable templates for specific contractor needs
- Advanced integration capabilities (CRM, accounting software, ERP, billing software)
- Rock-solid security features
- 24/7 customer support
Cons:
The full spectrum of features is available upon payment; however, PandaDoc offers a 14-day free trial to test the product
Pricing: Essentials and Business plans cost $19/month and $49/month, respectively; the Enterprise plan is available upon request.
Customer rating: 4.9 out of 5.
2. Square
Square’s invoicing system is a professional solution for contractors known for its user-friendly interface and powerful functionality like estimates, contracts, and payments request generation.
Key features:
- Advanced payment options (credit/debit cards, ACH bank transfers, Apple Pay/Google Pay), including the availability of partial payments and deposits.
- Automated payment reminders with customizable reminder frequency and content options.
- Detailed reporting and analytics, including project timelines and cost analysis to optimize project schedule and performance, as well as resource utilization analytics (labor, equipment, materials) to ensure optimal allocation and minimize waste.
- Client portal with invoice history dashboards and saved payment methods.
- Branded professional estimates display aspects such as rough order of magnitude, unit cost and quantity estimates, assembly and bid estimates, etc.
Pros:
- User-friendly interface
- Electronic signing
- Unlimited professional invoices, estimates, and contracts with unlimited user accounts, even with the free software version
- Seamless integration with accounting tools and various mobile apps
- Multi-currency support
Cons:
- Unlike PandaDoc, Square has limited template customization
- Additional fees for payment processing and advanced software features
- Scalability issues, as Square is more suitable for small businesses
Pricing: A free subscription is available. A premium version starts at $20 per month.
Customer rating: 4.7 out of 5.
3. FreshBooks
Designed with general contractors in mind, FreshBooks accounting software is ideal for tracking billable hours, managing supply expenses, creating invoices, and performing online payments.
Key features:
- Real-time tracking of billable hours and team time logs, recurring invoices for regular clients.
- Customizable invoice templates with tailored branding.
- Payment schedules and automated payment reminders, with multiple payment options and currencies available.
- Project management functionality, including task management, project progress tracking, and project budgeting
- Proposal generation includes a detailed breakdown of labor, materials, equipment, and subcontractor costs.
Pros:
- User-friendly interface
- Time and expense tracking
- Reporting and analytics
- Professional estimates and invoices
Cons:
Limited customization options
Pricing: There are various subscription plans: Lite is $7.60/month; Plus is $13.20/month; and Premium is $24/month.
Customer rating: 4.5 out of 5.
4. QuickBooks
QuickBooks is construction accounting software that offers advanced reporting capabilities along with invoice management automation.
Key features:
- Automated generation of custom estimates and invoices (including batch invoicing), and real-time invoice status tracking.
- Comprehensive bookkeeping management includes multiple payment options, milestone payments (phased billing and retention amounts), recurring invoices, change orders, and payment dispute protection.
- Analytics capabilities such as a cost tracking calculator, labor cost and expense analysis, and project profitability insights.
- Seamless integrations with banking, accounting, e-commerce, and project management software.
Pros:
- Designed specifically for construction companies
- Recurring payments
- Advanced financial reporting capabilities
- Suitable for all business sizes
Cons:
- QuickBooks has limited features in its lower-tier plans
- Tech complexity for non-accountants
Pricing: QuickBooks offers various pricing plans, starting at $30 per month.
Customer rating: 4.0 out of 5.
5. Xero
Xero is a cloud-based accounting solution designed to help small- and medium-sized businesses to streamline their finance management.
Key features:
- Recurring invoices that detail labor, materials, and other specific charges; easily set automatic payment reminders.
- Advanced expense management that allows tracking expenses directly related to each job.
- Bank reconciliation capabilities, including automated matching, bank feeds and rules, cash coding, and reconciliation reports.
- Xero integrates with inventory management tools, enabling contractors to track the materials used and accurately include them in invoices.
- Advanced financial reporting, including profit and loss statements, accounts receivable reports, and cash flow statements.
Pros:
- User-friendly interface
- Cloud-based access for remote collaboration
- Robust integrations with CRM, e-commerce, and payment processing tools
- Multi-currency support
- 30-day free trial
Cons:
- Limited functionality for lower-tier plans
- Performance issues
- You might need a third-party expert help to deploy the solution
Pricing: An Early plan costs $4.50/month, followed by Growing and Established versions at $12.60/month and $23.40/month, respectively.
Customer rating: 4.3 out of 5.
6. Procore
Invoice software designed specifically for the construction sector, Procore manages projects, resources, and finances — from planning to closeout.
Key features:
- Automated invoice creation, submission, approval, and real-time visibility into invoice status and payment processes.
- Deep insights into project timelines and delays, labor productivity, profitability metrics, and more.
- Powerful project management, including budgeting, scheduling, resource allocation, procurement, and quality assurance.
- Integrations with accounting software like QuickBooks.
Pros:
- Unlimited users and data
- Integration of financials with projects
- Document and product management capabilities
- Cloud-based
Cons:
- Software complexity
- Limited features
Pricing: Procore offers various subscription plans; go to their official website to get a customized quote from their team.
Customer rating: 4.6 out of 5.
7. Zoho Invoice
An advanced CRM solution built for businesses of all sizes, Zoho Invoice provides powerful invoice features for contractors.
Key features:
- Customizable invoice templates include contract references and compliance documentation.
- Recurring invoicing (for regular customers) with customizable schedules, automatic payments, and advanced reporting.
- Real-time expense tracking, including receipt scanning, automatic categorization, and integration with accounting tools.
- Legally binding electronic signing that comprises secure authorization and audit trail functionality.
- Online payments through multiple gateways such as PayPal, Stripe, Square, GoCardless, Authorize.Net, Braintree, Worldpay, and DPS Payment Express.
Pros:
- Multi-currency and multiple languages
- Advanced features like auto-reminders
- Integration with Zoho apps and third-party solutions
- Additional sales management features besides invoicing
Cons:
- Poor customization in invoice management
- Lack of reporting functionality
Pricing: Zoho Invoice offers a free plan with limited functionality, followed by paid versions scaled according to the number of included features.
Customer rating: 4.3 out of 5.
What to factor in when choosing invoicing software
There are many invoicing software options on the market, so focus on the following aspects when choosing one:
Customization
All the templates your solution offers should be easily customized to address your specific contractor needs and fit your brand identity.
Integrations
Make sure your invoicing solution seamlessly pairs up with accounting and billing software, CRMs, ERPs, and multiple payment gateways, so that you have a comprehensive invoice management ecosystem for your construction business.
Security
All sensitive data should be firmly protected.
For example, PandaDoc stores metadata, customer data, activity, and files in different locations, encrypting them with AES-256 and advanced encryption keys management.
Automation
Look for the functionality that can spare your manual tasks, including automatic reminders and renewals, document tracking, notifications when the invoice is signed, and more.
How we sourced data for this article
When compiling content for this review, we factored in reputability, reliability, and topical relevance for the construction industry. Our sources included the following:
- Business websites
- Customer reviews and feedback
- Professional review sites such as G2, SoftwareConnect, Gartner, and others
When websites for software are mentioned, they are to confirm factual data about the products and features we’ve reviewed, such as pricing plans and free trials, etc.
Their claims about their products are not included in our analysis.
Streamline your billing workflows
Ready to implement invoice management automation for your construction company?
PandaDoc is here to assist — from account setup and configuration to the regularly updated knowledge base in our Help Center.
The platform also lends contractors a hand with construction proposal templates and approval workflows that give you back your time to focus on closing deals and completing projects.
Comprehensive onboarding services are available to help your team kick-start being more productive.
Schedule a demo to check out the full spectrum of PandaDoc functionality before fully committing to this invoicing software.
Disclaimer
PandaDoc is not a law firm, or a substitute for an attorney or law firm. This page is not intended to and does not provide legal advice. Should you have legal questions on the validity of e-signatures or digital signatures and the enforceability thereof, please consult with an attorney or law firm. Use of PandaDoc services are governed by our Terms of Use and Privacy Policy.
