Rest assured that when we say project accounting software works, we mean it. In fact, we have five reasons why it will work for your business. Let’s start with a few basics.
What is project accounting software? The term project accounting means creating those financial reports designed to track your progress on projects. So your project managers use these financial reports to manage their projects.
Project accounting software, on the other hand, refers to the software with features that combine your general ledger, accounts payable, receivables, sales, purchase orders, inventory and time/expenses in one software program. Project accounting software also manages contracts and other non-financial information — like project planning — that relate to your project. The point is to track all the relevant moving pieces of the project in one place in a visual format with real-time dashboards and reports.
Competitive Bids. When you have good records of a project from beginning to end, it’s easier the next time to make a more realistic bid. Project management and accounting software lets you see what’s in your current project pipeline. Project-based software helps you know when you need to hire additional staff and helps identify the materials that you will require for every project.
Keep the devil out of the details. Project accounting software gives you the tools to keep your client informed about project details.
- Give your team access to the software so they can log their time and their expenses.
- Track actual expenses compared to your original estimates.
- When your client calls with questions about an invoice or wants to know about resources, you have the answers at the tips of your fingers. Impressive.
Get a clear understanding of your business costs. Your staff can use the project accounting software to show you why your labor costs are rising and where you can make changes to improve profit margins.
- Increase profit margins in future projects because you will have a better bid process based on better data.
- Lower your expenses because your management of your projects improves and your billing processes are tighter.
- Last, but not least, your team’s ability to have improved access to client information means they can respond to your clients quicker and provide exceptional customer service.
Project Accounting Software for International projects. For companies working in the International marketplace, the best choice for you is project accounting software that can support reports based on multiple currencies as well as multiple companies throughout the project.
With project accounting software, your billing system becomes your tool to manage revenue. You want a billing system that automatically creates invoices in the appropriate format, using the terms appropriate to your business and using the right prices. The best project management software recognizes revenue separately from billing so you can see the broader picture. Look for a software program that will make postings and calculations automatically for you based on the milestones you set, the schedule you anticipated, and the percentage of project completion.
Project Management in the Cloud. A growing number of business owners today take steps to re-evaluate how they manage their businesses and whether they should move more services to the Cloud for ease in accessibility and security. You can help improve the functionality of your business systems with a project management software program that makes it easy to integrate all your business services, whether they are in-house, contracted to third-party vendors (like accounting services, for example), or provided as a service-in-the-Cloud.
To learn more about Project Accounting software options please contact us.