5 Best Construction Invoicing Software

Construction invoicing software is a digital tool designed specifically to manage the complex billing needs of construction projects, from generating detailed invoices tied to project phases to tracking retainage, labor hours, and material costs. 

Unlike generic invoicing platforms, construction invoicing software integrates with job costing, project management, and accounting systems to ensure every bill reflects real-time project data. It helps contractors accurately bill clients for completed work, change orders, or milestones while keeping a transparent record of all financial transactions across multiple projects.

With slow payments adding $273 billion to construction costs in 2023, using efficient invoicing software has never been more important.

Key Takeaways

• Construction invoicing software streamlines billing, reduces errors, and ensures accurate project-based payments.
• Choose a tool that supports progress billing, retainage, and change orders for efficient cash flow management.
• Integration with accounting, CRM, and project management systems improves workflow and financial visibility.
• Platforms like DepositFix offer automation and flexible payment options that help contractors get paid faster.
• Investing in the right software enhances client trust, project transparency, and overall business efficiency.

What Is a Construction Invoicing Software

Construction invoicing software is a specialized financial management tool built to handle the unique billing processes of construction projects. Unlike standard invoicing tools that simply create and send bills, construction invoicing software is designed to manage complex project-based transactions, including progress billing, retainage, change orders, and multi-phase job costing.

In construction, payments are often tied to project milestones, completion percentages, or specific deliverables. This makes traditional invoicing methods inefficient and prone to errors. Construction invoicing software solves that problem and automates invoice creation based on project data, tracking payments across multiple jobs, and syncing with accounting or project management systems.

It provides contractors, builders, and subcontractors with real-time visibility into cash flow, helps prevent disputes through detailed line-item billing, and ensures compliance with contract terms. It turns a time-consuming, manual process into a structured workflow that supports financial accuracy, faster payments, and smoother project execution.

Why Is Having a Construction Invoicing Software Important

Here are the key reasons why having construction invoicing software is important:

• Streamlines complex billing processes: Automates project-based invoicing, including progress billing, retainage, and change orders.
• Reduces manual errors: Eliminates calculation mistakes and missing line items and pulls data directly from project records.
• Improves cash flow management: Speeds up the billing cycle and ensures faster, more consistent payments from clients.
• Enhances financial visibility: Provides real-time tracking of expenses, payments, and outstanding invoices across multiple projects.
• Simplifies communication with clients: Creates transparent, detailed invoices that clearly outline costs and work completed.
• Integrates with project and accounting tools: Syncs data between your invoicing, project management, and accounting systems for accuracy and efficiency.
• Saves administrative time: Reduces time spent on repetitive billing tasks so teams can focus on project delivery.
• Supports compliance and documentation: Keeps all financial records organized and audit-ready for easier reporting and dispute resolution.
• Improves client trust: Professional, accurate invoices build credibility and foster long-term business relationships.
• Scales with your business: Adapts to the needs of small contractors and large construction firms alike as projects and teams grow.

5 Best Construction Invoicing Software

Here are the 5 best construction invoicing software options to streamline your billing and payment process.

DepositFix

DepositFix is a payments & invoicing-automation platform designed to streamline billing, payment collection, and revenue workflows. It works especially well for businesses that need flexible online payments, gateways integration, and automated invoicing.

Key features:

1. Automated invoice creation, tracking and payment reminders.
2. Support for multiple payment gateways (Stripe, PayPal, Authorize.Net etc) including ACH and Google/Apple Pay.
3. Invoicing API & integrations with CRM/HubSpot for deal-to-cash workflows.
4. Flexible product/ pricing management: subscriptions, trial periods, zero-amount deposits.
5. Real-time payment tracking and revenue visibility to reduce manual work and improve cash flow.

Sage 100 Contractor

Sage 100 Contractor is a construction-industry focused business management software that combines accounting, job costing, project management and reporting, tailored for contractors and builders.

Key features:

1. Job costing and project cost tracking: monitor cost by job, budget vs actual, change orders etc.
2. Project management and scheduling tools built into the platform, connecting field & office.
3. Integrations with construction-industry software and third-party tools (CRM, field apps).
4. Customizable dashboards and reporting specific to construction: receivables aging, income breakdown, project work centre.
5. Full accounting and payroll module built-for contractors: combining financials + operations in one system.

FreshBooks

FreshBooks is a cloud-based accounting and invoicing software targeted at small businesses and service-based firms. It makes invoicing, expense tracking, time management and payments simpler.

Key features:

1. Professional & customizable invoices, with recurring invoices, automatic reminders for payments.
2. Time-tracking and expense-tracking included: turn hours and expenses into invoices.
3. Accept online payments (credit card, bank transfer) to accelerate cash-flow.
4. Mobile apps for iOS/Android, manage invoices and expenses on the go.
5. Simple dashboard and reporting for small businesses: see client balances, outstanding invoices, transaction summaries.

QuickBooks Online

QuickBooks Online is a cloud accounting software designed for small to medium-sized businesses, offering invoicing, expense tracking, project and job cost tracking and full financial management.

Key features:

1. Invoice tracking with automatic payment reminders and matching.
2. Expense tracking, bank feeds & automatic transaction categorisation.
3. Job costing, project tracking and reporting (especially in higher tiers) to monitor profitability.
4. Custom user management & permissions; multi-user collaboration.
5. Extensive ecosystem of integrations, add-ons, and advanced features (payroll, inventory, multi-currency).

Xero

Xero is a cloud-based accounting platform that supports invoicing, billing, bank reconciliation, expense management and integrates with many business apps. It’s especially well suited for small to medium businesses that want real-time financial visibility and online collaboration.

Key features:

1. Online invoicing & billing, convert quotes to invoices, track unpaid/overdue invoices.
2. Automatic bank feeds & bank reconciliation to keep financials up-to-date.
3. Expense claims and job/project tracking (time & cost) for projects.
4. Cloud-based access & wide integration ecosystem (apps marketplace).
5. Real-time dashboard & analytics: monitor cash-flow, invoices owed, bills to pay, etc.

What Features to Look for When Choosing a Construction Invoicing Software

Here are the key features to look for when choosing a construction invoicing software:

• Progress billing support: Ability to bill clients based on project milestones, completion percentage, or phases of work.
• Change order management: Easily update invoices to reflect project scope changes or additional work.
• Retainage tracking: Automatically withhold and release retainage according to contract terms.
• Job costing and expense tracking: Monitor costs for labor, materials, and subcontractors to keep budgets accurate.
• Automated invoicing and reminders: Schedule recurring invoices and send payment reminders to reduce late payments.
• Integration with accounting and project management tools: Sync invoices, payments, and expenses across your financial and operational systems.
• Customizable invoice templates: Create professional, branded invoices tailored to your company and project type.
• Multiple payment options: Accept credit cards, ACH, or digital payments directly from the invoice.
• Real-time reporting and dashboards: Get visibility into outstanding invoices, cash flow, and project profitability.
• Mobile access: Manage invoices, payments, and client approvals on the go from smartphones or tablets.
• Document and compliance management: Store and attach contracts, permits, and supporting documents for each job.
• Customer self-service portal: Allow clients to view, approve, and pay invoices online.

Make the Best Choice for Your Business with DepositFix

When it comes to managing construction invoices, payments, and cash flow, DepositFix is designed to simplify every step of the process. It’s a complete payment and revenue automation solution that helps contractors focus on what they do best: building and managing projects.

With DepositFix, you can:

• Automate your invoicing: Generate accurate invoices for milestones, progress payments, and change orders in seconds.
• Accelerate payments: Accept credit cards, ACH, and online payments directly from your invoices to improve cash flow.
• Streamline AR workflows: Send automated reminders, track outstanding payments, and reduce late collections.
• Integrate seamlessly: Sync with your CRM, accounting systems, and project management tools for a unified workflow.
• Provide client convenience: Let customers access invoices, view payment history, and pay online through a secure portal.

Upgrade your construction billing process today and experience faster payments, fewer errors, and complete visibility into your projects. Choose DepositFix, the smarter way for contractors to get paid. Book your free demo today!

Conclusion

Choosing the right construction invoicing software can make a huge difference in how smoothly your projects run and how quickly you get paid. From streamlining complex billing processes to providing real-time visibility into cash flow and project costs, the right tool ensures accuracy, efficiency, and client satisfaction. While there are several solid options available, DepositFix stands out as the ultimate choice for contractors who want to automate invoicing, accelerate payments, and integrate seamlessly with CRM and accounting systems. 

With DepositFix, you can reduce manual errors, save time, and focus on what matters most: delivering quality projects and growing your business. Make the smart move today and transform the way your construction business handles payments.

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