In the construction industry, projects are the lifeblood of the company. One of the critical management functions for a construction executive is making sure that financials are tightly managed. One way to improve profitability is to utilize accounting software that is designed exclusively for the construction industry. The appropriate construction accounting software solution will help improve the efficiency and profitability of your construction company. Here’s how…
3 Ways Construction Accounting Software Can Save You Money
1. Accurate Job Costs
Are you still using a non-industry specific accounting program such as Quickbooks or Sage 50 to manage your job costs? Traditional accounting software makes job cost accounting convoluted and creates a higher risk for error. One of the biggest advantages of construction accounting software for the contractor currently using a generic accounting product is that it saves you money by creating a smaller margin for error. Your software should not only keep record of your costs, but allow you to innovatively analyze the data you’re given so that you can effectively budget, manage and forecast your job’s performance.
Spectrum gives you the functionality to quickly build budgets, forecasts and track the accuracy of those reports so you can adjust them in future projects. You can import estimates and apply them to a job’s budget with ease, saving you time and money. A typical construction job tends to come with unforeseen challenges and material adjustments. The Spectrum Accounting application is easily adjustable along the way so you can update information and your managers in the field can see it in real time.
2. Information Management
Whether you’re a general contractor, heavy highway contractor or specialty subcontractor, you’re dealing with financial data from a variety of team members and subs throughout the life of the project. Few jobs are done all ‘in-house’ and most require collaboration among many construction trades. Construction-specific accounting software makes it much easier to manage all of the job’s moving parts.
Whether you’re a project manager in the field or an accountant in the office, you rely on the same documents for job updates, changes, expenses and overall job profitability. Basic construction software applications allow for document storage but lack the comprehensive programming to intuitively link jobs together. Spectrum tags all of the documents, contracts and related correspondence uploaded to the system so that the data can be quickly and easily found for anyone working on the project.
3. Staying Ahead of the Curve
The construction industry requires collaboration throughout the entire project team, including the project manager, contractor, sub-contractors, field managers and more. This type of collaboration requires a technology that is accessible to everyone. If your software provider hasn’t shifted to cloud-computing and seamless mobile technology integration, it may be time to explore new options to enhance communication and profitability.
Accounting software for the construction industry is highly specialized to handle the unique challenges of the industry. If you’re on the fence about moving to a construction accounting software solution, please contact Strategies Group today. We can help you understand the pros and cons of various packages and help you select the right solution for your company.