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The Top Seven Benefits of Construction Accounting Software
What is Construction Accounting Software?
Construction accounting software is to a construction professional what an x-ray machine is to a healthcare provider. An x-ray machine gives healthcare providers the ability to detect what’s happening inside their patients, providing them with the information and visibility needed to help cure them. Similarly, construction accounting software gives construction professionals the ability to see inside their construction businesses for a real-time view of financials, job cost accounting, project management, inventory, CRM, and more, providing the information and visibility they need to successfully manage their financial and accounting needs.
The Benefits of Using Construction Accounting Software
When a construction firm decides to implement construction accounting software, specifically one that is cloud-based, the benefits are felt company wide. Employees in the front office and technicians in the field are privy to the same data at the same time, enabling them to be more coordinated and efficient in their work. Following are seven benefits of using cloud-based construction accounting software.
1. Job Cost Accounting
Job Cost Accounting is the process of tracking project costs, including materials, labor, equipment, and overhead. With construction accounting software, construction firms can capture these costs, gaining insights into job costs (e.g., cost to complete, cost at completion, and percentage of completion). They will also gain accurate estimates for future projects, as well as synchronized project management and accounting information.
2. Projects, Not Paperwork
Though becoming less prevalent, many construction firms still rely on paper-based processes to manage their business. From job plans, contracts, and submittals to proposals, photos, and inspection reports, documentation can create a huge (and wasteful) paper trail. Construction accounting software reduces the waste with electronic documentation and automated processes, which puts the focus on the project, not the paperwork.
3. Always Available
The “cloud” portion of cloud-based construction accounting software means organizations have mobile access to their project information via the Internet. This anytime access—whether in the office or in the field—on a web-enabled device gives a complete and real-time view of every projects’ details, such as field and inventory updates. These updates and more are instantaneously shared with the project, back office, and management teams.
4. Integration with Other Construction Solutions and Platforms
Rarely, or perhaps never, does one construction solution meet every need, and construction firms have had to rely on disconnected and siloed applications to manage their complex operations. This is why cloud ERP vendors created industry-specific solutions that can seamlessly integrate with essential platforms, such as ProEst, Procore, CFMA Benchmark, Microsoft, DocuSign, and many more by using open APIs. Information is synchronized and easily shared between the various integrated solutions and platforms, forming a truly connected business.
5. Better Decision Making
Making effective decisions is dependent on having better information, visibility, and insight into the business. With cloud-based construction accounting software, everyone in the field and at the home office has a clear snapshot of the project. Construction companies can then make more informed decisions as well as manage labor, budgets, and schedules using updated and accurate information.
6. Clearly Organized Business
Being organized is vital for companies working with many-layered, complicated projects. Construction accounting software allows construction companies to integrate with other platforms (see point 4) to manage project costs and expenses as well as view contracts, schedules, budgets, change orders, and more from a single screen and dashboard. The need to pull information from different sources, which takes time that most people do not have, is eliminated.
7. Stay Within Scope
Changes in scope are nothing new to those in the construction industry but managing scope changes can be challenging. The right construction accounting software organizes and displays all activities, incoming documentation, and messages from a single platform, eliminating any lag in communication. Changes are inevitable but project managers can rely on construction-based software to help them as they adapt, monitor, and control the shifting landscape.
How Acumatica Can Help
Healthcare providers need x-ray machines to know what actions to take in order to help their patients reach optimal health, and construction professionals need construction accounting software to do the same for their business. The benefits of using modern, mobile, and cloud-based technology, from job cost accounting to staying within scope, are exactly what Acumatica envisioned when creating Acumatica Construction Edition.
As an easy-to-use, specialized solution, Acumatica Construction Edition will help increase collaboration, streamline businesses processes, and improve project visibility. Construction professionals will enjoy a real-time view of their business anytime, anywhere with financial, project management, inventory, and CRM information at their fingertips.
To learn more, contact the experts at Blytheco, a full-service ERP and CRM partner specializing in software consulting, implementation, and support. Since 1980, Blytheco has been helping clients make thoughtful decisions, solve their biggest challenges, and transform their businesses. As the Acumatica Partner of the Year in 2021, Blytheco has the knowledge and expertise to implement Acumatica for your construction business on-time and on-budget. Read more about the multiple Acumatica awards earned by Blytheco in 2021 in the post below!