You’ve made the decision to purchase construction management software. Good idea! Now you need to determine whether or not to get the module that allows you to do your own payroll internally, and you’re just not sure what to do.

Payroll management modules allow you to easily keep track of all of the details associated with payroll. For example, reports can be generated for the required year end government reporting. You can also print out all the time associated with a specific client, project, or employee. Most programs have a variety of template reports to get you started, and can be customized to include only the details that you care about. Want to see a concise printout of all the hours that were spent on the Hamilton Street project? No problem. How about a list of all the hours worked by Joe Smith for the past month, and a breakdown of the type of job that the most time was spent on? Easy, since there are multiple job codes to select from when time is entered.

Handling your own payroll through construction software also has the benefit of eliminating the double entry of each job. When you enter the time spent by Mr. Smith working on Hamilton Street directly to job cost, that information goes towards the generation of the statement for the project, and also towards payroll information for Mr. Smith. There is one entry made, but two goals are accomplished. The construction project management software allows less time to be wasted and less chance for an error than having a separate payroll time sheet entry.

Hiring a professional

Instead of using construction project management software to handle your accounting, perhaps you prefer the simplicity of sending your payroll information to an accountant , and just leaving the details to them. They can make sure all of the appropriate forms are prepared for the state and federal government each year and ensure you are setting aside the correct amounts for payroll taxes. Multistate taxes are handled with minimal oversight by you.

When using an outside payroll service, you are often required to use construction project management software that is compatible with their system’s interface. If you currently use a less-popular program, the change-over to a compatible program could be time-consuming. However, chances are that the accounting program that came with your productivity software pack or that you purchased at your neighborhood computer center will be compatible.

A Matter of Preference

Doing your own payroll using construction management software can put a wealth of information at your fingertips, but hiring a payroll service or an accountant to handle your payroll can simplify your day to day construction company management duties. It comes down to which is more valuable to you, and the choice is yours.