For most small contractors, QuickBooks Online Plus is the best accounting software to start with, because it combines job tracking, progress invoicing, and subcontractor 1099 support with a large network of construction apps. Larger firms or businesses with heavy retainage and certified payroll needs often outgrow it. Here is how to choose the best accounting software for contractors based on how your business actually bills and tracks jobs.
Last verified: September 2026.
What contractors need that other businesses do not
Most accounting software is built around selling products or services one invoice at a time. Construction works differently, and the software has to keep up.
- Job costing. You need to know whether each job made money, not only whether the business did.
- Progress invoicing. Large jobs are billed in stages, not in one invoice at the end.
- Retainage. Some clients hold back a percentage until the work is complete, and the books must track it.
- Subcontractors. You pay many of them, and you need 1099 records and insurance documents.
- Payroll by job. Labor costs should be assigned to the job they belong to, and some public work requires certified payroll reports.
Best accounting software for contractors at a glance
| Option | Best for | Job costing | Main limitation |
|---|---|---|---|
| QuickBooks Online Plus or Advanced | Small and mid-size contractors | Project profitability tracking built in | No native retainage, limited job-level detail |
| QuickBooks Desktop Enterprise (Contractor edition) | Established contractors that want deeper job reports | Stronger job costing and industry reports | Higher cost, and Desktop availability for new buyers should be confirmed with Intuit |
| Xero with a job costing app | Contractors who prefer Xero and are willing to add a specialist tool | Through third-party apps | Depends on integrations, more moving parts |
| Construction-specific accounting (such as Foundation or Sage 100 Contractor) | Larger contractors with complex billing and payroll | Built for construction | Steeper learning curve and higher cost |
Prices change often and vary by plan, so check each vendor’s current pricing page instead of relying on any single number. Our guide to QuickBooks pricing and every plan covers the QuickBooks side in detail.
QuickBooks Online for contractors
QuickBooks Online Plus includes a projects feature that lets you tie income, costs, and labor hours to a single job and see profitability in one place. It also supports progress invoicing from estimates, so you can bill a job in phases. Add its large marketplace of construction apps for estimating, scheduling, and field time tracking, and it covers the needs of many small contractors without any additional accounting system.
The weak points are worth knowing before you commit. QuickBooks Online does not handle retainage natively, so contractors who bill with holdbacks usually rely on workarounds or an add-on. Reporting by job is also less detailed than in construction-specific systems. If those two gaps matter to you, read the rest of this comparison before you sign up.
QuickBooks Desktop Enterprise for contractors
Enterprise includes a Contractor edition with job costing reports, progress billing, and industry-specific tools. It suits contractors who want more depth than QuickBooks Online provides, without moving to a completely different system. New buyers should check current availability and pricing directly with Intuit, because Desktop products have changed how they are sold in recent years. If you are weighing Online against Desktop, our comparison of QuickBooks Online vs Desktop true cost shows the long-term difference.
Xero and other alternatives
Xero is a solid general accounting choice and works well with third-party construction apps, but on its own it does not offer the depth of job costing that contractors typically want. It makes the most sense when you already know which construction app you plan to pair with it. For a broader look at other choices, see our list of QuickBooks alternatives compared by use case.
When a construction-specific system makes sense
Programs built for contractors handle retainage, certified payroll, change orders, and detailed job cost reports out of the box. They usually cost more and take longer to learn. They are worth considering if you run several large jobs at once, bill with retainage regularly, work on public projects with payroll reporting requirements, or have a full-time bookkeeper. If you are a smaller crew, the extra power tends to be more than you will use.
How to choose based on your business
- Solo contractor or a few employees: QuickBooks Online Plus, using projects to track each job.
- Growing crew with several active jobs: QuickBooks Online Advanced or Plus with a construction app for estimating and scheduling.
- Heavy retainage or certified payroll: a construction-specific system, or QuickBooks Desktop Enterprise with the Contractor edition.
- Already on another platform: weigh the cost of moving first. Our guide to the hidden costs of switching accounting software explains what to budget.
For a wider view across industries, see our overview of the best accounting software by business type.
Questions to ask before you commit
- Can it track profit for each job without a spreadsheet on the side?
- How does it handle progress billing and holdbacks?
- Does payroll connect, and can labor be assigned to jobs?
- Will it track subcontractor 1099s and insurance certificates?
- Does it connect to the estimating or project tool you already use?
Frequently asked questions
Is QuickBooks good for contractors?
Yes for many small and mid-size contractors, especially with its project tracking and app marketplace. Contractors with retainage, certified payroll, or very complex jobs may need a more specialized system.
Can I track job costs in QuickBooks Online?
Yes. The Plus and Advanced plans include project tracking, which links income, expenses, and labor to a job so you can see its profitability.
Do I need a separate estimating tool?
Not always. QuickBooks can create estimates and turn them into progress invoices. Contractors who do detailed takeoffs often add a dedicated estimating app.
What is the cheapest option for a small contractor?
The cheapest choice is not always the lowest monthly price. A tool that cannot show job profitability can cost you far more in bad bids than a higher subscription would have.
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