FOUNDATION® Helps New Contractors Master Job Costing

FOUNDATION® Helps New Contractors Master Job Costing

As the construction industry grows increasingly competitive, new contractors face pressure to adopt the right systems from day one. FOUNDATION®, the flagship construction accounting solution from Foundation Software, is helping these companies build solid financial foundations with tools that simplify job costing, payroll, and reporting.

According to IBIS World, the U.S. is home to more than 3.77 million construction companies, a number that has grown by an average of 1.6% per year from 2018 to 2023. This growth brings both opportunity and risk, especially for newcomers who must quickly establish efficient processes to remain profitable.

FOUNDATION® addresses these challenges with a full suite of features designed to give contractors visibility and control:

• Automated job costing with real-time expense tracking.
• Cash flow protection through integrated accounts payable and receivable management.
• Simplified payroll processing, including certified payroll reporting and multi-state timecards.
• Instant reporting, including Work-in-Progress (WIP) reports that reveal true profitability.
• Centralized project management to keep schedules and teams aligned.

Building Success from the Ground Up

The software is not only for first-year businesses — established contractors also use FOUNDATION® to optimize operations. However, the company emphasizes that early adoption of financial discipline can make or break new firms entering the market.

Experts recommend that contractors prioritize:

• Weekly cash flow monitoring to avoid budget surprises.
• Contingency reserves of 5–10% to safeguard profits.
• Risk management strategies tailored to each project.
• Profit margin analysis over raw revenue to identify the most valuable work.

By adopting FOUNDATION® early, new contractors can avoid costly mistakes, streamline financial oversight, and position themselves for growth in a crowded industry.

With the U.S. construction market showing no signs of slowing down, solutions like FOUNDATION® provide the tools and insights companies need to transform uncertainty into long-term sustainability.

Originally reported by Access Wire in Digital Journal.