|
|
I read this article at Software Advice and I
thought I would share it with you all. The following is a post by Houston Neal of Software Advice, one
of the top construction software websites.
5 Reasons to Replace Construction Accounting Software
This time of year, we talk with many construction companies considering a
new accounting software purchase. Maybe it’s the change in seasons,
the closing of the calendar year or the tax season looming on the horizon;
what ever the psychological trigger, there are rational reasons to replace
generic accounting software with a construction-specific accounting and
job costing system. Here are the 5 top reasons we hear from companies
thinking about a purchase.
-
Eliminate double-entry - Reducing double-entry helps construction firms
realize significant time and cost savings. In many cases the increased
efficiency alone will provide a strong ROI on the software purchase.
Construction accounting software automatically allocates information to
corresponding jobs and categories in a system. Combined with construction
project management software and construction estimating software, it
can eliminate double-entry of data and financial transactions across an
entire organization.
-
Improve audit trails - Audit trails help companies track not only what
changes were made, but who made them, and when and where they occurred.
With multiple users accessing the system, it’s likely that mistakes
will happen and therefore necessary to identify errors before they become
problematic. Construction accounting systems allow you to set unique
levels of authority and permission for each user in the system. What’s
more, audit trails reduce disagreements and risks of litigation.
-
Accommodate multiple pay rates – Managing wages for both union and non-union
employees complicates payroll. Accounting is often required to manually
enter data for the pay rates of each employee. Construction-specific payroll
systems automate this process, and pay the correct rate based on the job and
classification of work. Additionally, most systems are able to generate
certified payroll and worker compensation reports that meet the requirements
of government regulations.
-
Manage equipment and machines – Equipment management is critical to controlling
whether you win or lose money on a job. Accounting systems with an equipment
management module allow you to see how much is being spent on maintenance
and repairs, how many hours equipment is used, and whether it’s cost effective
to make repairs on individual machines. Advanced systems will automatically
calculate depreciation and assign usage costs to work orders.
-
Improve job costing – Possibly the most important reason for switching to a
construction-specific accounting system is that it provides advanced job
costing and reporting capabilities. A job costing system provides detailed
cost breakdowns for each component of every job. These systems "speak your
language" with support for CSI codes, time and material billing and AIA billing.
In turn you can assign costs to the right code and generate reports that
allow you to see what was spent on each division of the job. This helps
you identify unexpected material costs, overtime hours and other factors
affecting your profitability.
|
|
|