If you own a construction business, it is very likely that you are familiar with risks and sensitive profit margins. Especially, when the industry has just witnessed extensive downtime due to limiting finances during the pandemic, construction firms in 2021 need even better control over accounting and expense management.
Since working on giant construction projects needs project managers to have a thorough check on the payroll, resource purchases, payments, and other budget-related data, it is always a good idea to rely on dedicated construction accounting software.
However, the only thing that may bother construction contractors is the overwhelming task of finding the right construction accounting software. As the modern-day construction software offers highly integrated functionalities such as accounting, ERP, CRM, and project management, finding an all-in-one construction accounting software can be a great deal.
Though it is always a good idea to have a word with your field teams, project managers, and other crew when planning the features and capabilities of the software, the idea of making a change to your existing process may feel overwhelming. Today, we bring you a list of quick tips in the form of short questions that you can consider when planning to make a sensible move.
Before you start your search for the technology, the first thing which you need to necessarily consider is that “Do your company really need a new accounting software?” The answer for the same could be found by working out on below tips:
Identify Your Business Needs
The first step to evaluate any construction accounting software starts by identifying your needs. Make sure you always have a vision for future projects and ensure that you must only invest in a technology that helps you stay updated for the coming 5 to 10 years. For instance, you can look for a cloud-based scalable solution that can allow your teams to collaborate better while giving you the benefit to extend your software capabilities. At the same time, you should also look for a construction accounting software that only needs you to pay for what you purchase as features.
Calculate Value For Money
The next thing that you need to do is evaluate the product to find its value for money. However, this may need you to have some queries related to the construction accounting software. Did you find everything you need with your software? Are you taking advantage of all the capabilities of your existing system? Or would you be able to use all the capabilities of your new construction software?
Working on these queries could help you have a complete audit of your software while identifying any areas of improvement. If you are already using a full-fledged system that is serving the purpose, there is no reason to invest in new technology. Rather you could invest your resources in training and support available with your system to help your employees make the maximum with the resources.
When To Look Into A New Software?
Even if you have construction accounting software that looked feature-loaded but is adding no value to your business, it’s time to look for something new. Though it is difficult to find a perfect solution that aligns with your business needs, you can still find a solution that can deliver on the majority of your requirements.
What a construction accounting software can do?
Many construction firms use disparate solutions to work on the entire task of construction management. Either it is accounting or resource planning, every process has a different system that needs to merge data in the end to measure overall outcomes.
On the other hand, using construction accounting software with integrated features can help contractors to simplify the general ledger while enjoying job costing, revenue management, cost classifications, and much more. Using such a system can also help contractors to have a complete view of the project progress and activities to find out where your money is going to have better control on cash flow and revenue.
Some of the additional features that might interest various subcontractors and contractors who are associated with government projects could be Certified Payroll Reporting, AIA billing, Davis-Bacon, Section-125 deductions, and automated job labor cost calculations.
But how do you find the right construction accounting software?
If you have made your decision to change your existing construction accounting software, the next thing that you need to do is finding the solution which suits your needs. Here is a quick step-by-step guide that you can consider for simplifying the task:
- Consider Team Advice: the first thing that you need to do to ensure the right decision with your construction accounting software is asking your team. You can simply ask them about the missing features, the capabilities they need and compile it all. Moreover, you can also reach your team such as project managers to ask about tools they have used in past to have a wider range of options when making a choice.
- Finding New Software: once you have a clear picture of all the features and benefits you need with your construction accounting software, start with the research. This may need you to go through multiple software packages and have maximum information on them to make a confident move.
- Never Hesitate To Get A Demo: when you have filtered the long list of available construction accounting software, you should try a live demo of the system. This opportunity can also help you to know about service response, support process, and handling of customer queries.
- Get & Check References: The next thing you can do to check the validity of a construction accounting software is ask the existing users. make sure you ask at least three or more references to have complete and honest feedback. You can ask them about the pros and cons of the software as well as the support to have a better know-how of the tool.
- Training & Support: Last but not least, make sure you always have a detailed idea of training and support offered by the construction accounting software provider. You should have a complete idea of the implementation process, training process, education plans, and any other additional resources that can help you adopt the new technology. Moreover, system audits and consulting services from time to time are always a plus when investing in a software solution.
Finding the right construction accounting software can be a big decision for your business. However, it is always a good idea to evaluate your existing system and your future needs when investing a large portion of your earnings into software technology. And if you are having trouble managing your finances and keeping control over your expense reports, all you need to do is consider the above guide and move in the right direction.
Author Bio: Ed Williams is the Senior Team Lead at ProjectPro, an integrated construction accounting software. He holds a massive industry experience and is a Microsoft Dynamics expert who is focused on successful implementations. He is a visionary leader and always aim to deliver the best to the construction and project-oriented industries.