A good project accounting system from eresource can make running your construction business much easier. The feature offerings of such an accounting software for construction comprise integrated accounting reports, project-wise trial balances and P&L, outstanding receivables and payables, customer and project-wise statements, a dashboard, and more. Leveraging these features, you can gain valuable insights into different construction projects and, thus, boost their profitability. However, implementing a new project accounting software is not easy. The implementation process is prone to several errors if not planned appropriately. Therefore, you should treat your project accounting system implementation as a vital business project. Following a correct approach can boost the implementation speed and accuracy while minimizing errors. Also Read – ERP Software for Construction Read further to learn the steps in implementing a construction company’s project accounting system. 1. Implementation Planning or Project InitiationThe first step is to define the core pieces of the accounting software implementation project. These core pieces include objectives, assumptions, scope, risks, and deliverables. After defining these, consider devising a plan for the entire project. Review your construction business’ projects, processes, and requirements. Look for the areas that are doing well and the ones that need improvement. Take them into account when planning the implementation project. 2. Software Installation It’s time to install the construction industry accounting software onto your computers. Ensure your network and hardware support your new system when doing the same. In addition, see to it you have the necessary hardware setup. 3. Training the TeamAt this point, training the team is not about how to use the system. Instead, you will teach them how to participate in the software implementation process so things run smoothly. 4. System Design PlanNow that the project accounting software has been installed, your employees know how to participate in the implementation process. Before configuring the system to fit your construction business, you should create a system design plan. This plan can entail details about all functional areas, projects, transactions, processes, databases, and security.At the end of this step, your system design document will be in place. This document will demonstrate that your company’s end goal to implement the accounting system is achievable. 5. Accounting System ConfigurationYou can work with a third-party vendor or consultant to configure your Project Accounting Software to fit your construction business based on the system design document. Don’t forget to test everything to ensure the system is working. 6. Clean Up Records in the Old SystemBefore migrating your data to the new project accounting system, clean up your records in the old system implemented in your construction company. Doing the same will make the transition to the new accounting platform more seamless. 7. Data MigrationAt this stage, move all data from your old system to the new project accounting system. Having a plan in place for all the activities needed to transfer data to the new system is advisable. 8. Project Accounting System TrainingBefore starting this phase, you should have a training plan. Working with the accounting system consultant is recommended to curate training materials covering the software’s features, modules, and functions. By obtaining these training materials, you can teach your employees how to effectively use the project accounting software to run your construction business smoothly. 9. Go LiveOnce your project accounting software is correctly implemented and staff is trained, you can go live with the software. It’s time to make the full and final transition to the new platform. 10. Post-Implementation SupportYou can ask the project accounting software company to provide ongoing support through a dedicated helpline or a helpdesk. In addition, consider asking them for free resources like webinars to train your employees on new features and how to use the accounting system better. Read also – Rental ERP Software To wrap up it all! Switching project accounting systems can make a huge difference in how your construction business operates. Up-to-date accounting systems with cutting-edge features and functionalities by eresource can speed up your construction projects’ finance processes and boost efficiency. However, it’s not possible with a correctly implemented project accounting software. Following the above-discussed steps can help you seamlessly migrate and implement the project accounting system in your construction company. A new accounting software will deliver you better reporting and timely information and drive value via vital insights into your projects. Also Read – ERP for Manufacturing Industry
Accounting is a universal language of businesses, but general accounting can fall short when it comes to construction projects. It’s when project accounting comes into the picture, offering a more tailored and granular approach. Project or job cost accounting is a strategic method of financial reporting and controlling costs for varied projects. Construction companies operate on project-based models and, thus, have unique accounting needs that require specialized Project Accounting software to manage project-related financial data. Employing the project accounting platform, featuring integrated accounting reports, project P&L, project-wise trial balances, comprehensive finance view, and more can revolutionize how construction businesses manage their financial undertakings. This software has come across the innovative antidote to the challenges of traditional accounting methods, offering a comprehensive solution to streamline accounting processes for each construction project. In this article, you can discover how project accounting software can help transform your construction business. Read also – ERP for Automotive Industry Advantages of Project Accounting Software Project-based construction accounting software can render the following listed benefits to your company, taking your business to the next level: • Financial control and management One primary advantage you can reap by employing project accounting software in your construction company is controlling and managing the project’s financial aspects. Construction projects can’t be undertaken without substantial investments in materials, equipment, labor, and other vital resources. Proper project accounting enables you to monitor and manage all financial resources efficiently. In addition, eresource NFRA project accounting software provides stakeholders with real-time insights into their construction project’s costs, revenue, and profitability. These insights further allow project managers to identify potential issues or areas of improvement and, thus, take corrective actions accordingly. This level of financial control ensures that the projects are completed within the budget while meeting their financial objectives. Also Read – Construction Management ERP • Estimating cost and budgeting Accurate cost estimation is critical to successful construction projects. Failure to estimate costs accurately can result in budget overruns and project delays. Project accounting is vital to estimating costs and devising budgets based on historical data and cost analysis. By referencing past construction projects and tracking expenses with the help of a project accounting system, companies can estimate costs more precisely and develop accurate budgets for future endeavors. It will help you secure the required financing and maintain the project’s financial visibility. • Optimal resource allocation Optimal resource allocation is another crucial aspect that can help optimize the construction project’s performance. Project accounting software can aid stakeholders in tracking resource usage, making it easier for them to allocate materials, labor, and equipment to different projects. It further reduces wastage and boosts the project’s efficiency. Also Read – ERP for Food and Beverage Industry • Cash Flow Management Construction projects require periodic funding and can extend for days to months, making cash flow management extremely important. Construction enterprises often need to balance the cash they receive from project payments with the outgoing cash in terms of labor, equipment, and materials expenses. Project-based accounting software enables project managers to monitor cash flows in real-time. Therefore, they can maintain sufficient funds to cover expenses and meet financial obligations. Effective cash flow management with an accounting system aids in preventing liquidity crises and keeping projects on track. Also Read – Rental ERP Software • Compliance and reporting Construction projects need to comply with many financial mandates and reporting requirements. Employing cutting-edge contractor accounting software ensures that contractors’ wages and project-related other expenses are recorded accurately. In addition, with this system, managers can ensure construction projects comply with the relevant accounting standards and contractual agreements. Aside from this, detailed financial reporting helps maintain transparency and accountability to establish a positive relationship with lenders, investors, and other stakeholders. • Risk Management Construction projects inherit multiple risks because of factors like site conditions, weather, supply chain disruptions, etc. Proper project accounting with a superior accounting system can help manage or mitigate risks by providing accurate financial data. This data allows construction project managers to assess how potential risks can impact the project’s financial health and identify countermeasures accordingly. Read also – ERP for Chemical Industry Final Words Accounting for construction projects is not limited to number-crunching. Instead, it involves financial control, cost estimation, cash flow management, budgeting, risk management, resource allocation, and financial compliance. eresource NFRA features a robust project accounting module. In addition, integrating it into the eresource ERP suite can provide construction enterprises with a cutting-edge solution to manage their projects’ financial aspects. Therefore, a project accounting system forms a critical backbone of a successful project by providing an accurate, detailed view of the project’s financial progress and performance. Mail Us at sales@eresourceinfotech.com for Live ERP Software Demo
eresource Project Accounting Software is one instrument for managing the financial side of projects. This software provides a thorough understanding of a project’s financial health by tracking and reporting on project budgets, spending, billing, and income. Businesses who oversee various projects financially can closely monitor their expenses and revenue depends on this sophisticated software. eresource Project accounting software provides clear insights into project spending, guarantee accurate and timely billing and invoicing, and supports upholding financial standards. They facilitate improved decision-making by offering thorough financial reports, which enable managers to modify project strategies in response to up-to-date financial information. This software is especially useful for businesses like construction, engineering, and consultancy where projects are the main emphasis of the operation. Selecting the right Project Accounting Software for your business Project managers require accounting software that is web-based, supports numerous users, records project finances with ease, and generates reports that are simple to understand. They also want a cost-effective solution that will expand their business. To ensure that the project is moving forward within budget, managers can create comprehensive time tracking, expense, and profit and loss reports. What we would like to emphasize here is eresource Project Accounting Software offers limitless, top-notch phone and email support in case you require assistance. It also has affordable plans on a subscription basis. Gradually organizations that are deploying this software will realize that it is far less expensive than employing an accountant. Any business’s ultimate objective is to produce a profit and return on investment. To do this, it must have flawless financial management and eresource Project Accounting Software to prove it was the right solution to achieve the former goals. As anyone would agree accounting is one of the most error-prone professions in the world, so it’s easier said than done. Fortunately, with the introduction of eresource project accounting software over the past few years, that has significantly altered. eresource’s graphical user interface (GUI) and automation have made project accounting simpler. Additionally, they offer tools focused on forecasting and budgeting to assist organizations in making data-driven financial decisions regarding their projects. Read Also – Manufacturing ERP Software Qualities of eresource Project Accounting Software Project health is given more weight in project accounting than in ordinary financial accounting, which is mainly concerned with a company’s taxation and compliance. Your project accounting software needs to include the following special features in order to function properly: Cost tracking for projects in phases: A project includes expenses associated with each stage as it progresses. The program should provide phase-wise or stage-wise tracking of project-related expenditures so that you can fully comprehend the influence of these costs on your project. Time tracking: With this feature, your team members can record how many hours they spent working on a certain project. It is essential for monitoring wage costs at the project level. Reporting tailored to a project: Strong reporting tools in this excellent accounting software enable the creation and export of financial reports, giving a comprehensive picture of all project-related expenses. Integrations: The accounting team’s workload can be greatly expedited if your project accounting software can interface with general accounting software. It should also interface with project management applications so that pertinent data and work progress can be quickly synchronized. Forecasting and budgeting: These features in this project accounting software let you make plans and have a broad understanding of how your project will develop in the future. Read Also – Construction ERP Software Advantages of eresource Project Accounting software at a glance: Recognize the actual cost of any endeavor You can see your project budget holistically with eresource. View current data on where you are making money, how much it is costing you, and how to profit from projects. Examine the data in detail to determine what has to be addressed upfront in order to improve performance. Monitor project expenditures at the portfolio level With eresource spending tracking feature, you can keep an eye on where your money is actually going and raise financial literacy within your company. Seal any holes in your budget and optimize your spending procedures. Also Read – Road Construction Software Make intelligent invoices By creating invoices right within the application, you may expedite the billing process. eresource integrates your team’s time entries immediately into your bills so that sharing is simple. Examine the impact of paid and unpaid invoices on the budget for your project. View all financial data in one place With a comprehensive overview of all financial data, you can identify areas of your project portfolio where you are making and losing money. Use real-time traceable numbers to identify abnormalities before it’s too late. At the organizational level, make sure that project funds are transparent and of high quality. Also Read – Rental ERP Software
A good project accounting system from eresource can make running your construction business much easier. The feature offerings of such an accounting software for construction comprise integrated accounting reports, project-wise trial balances and P&L, outstanding receivables and payables, customer and project-wise statements, a dashboard, and more. Leveraging these features, you can gain valuable insights into different construction projects and, thus, boost their profitability. However, implementing a new project accounting software is not easy. The implementation process is prone to several errors if not planned appropriately. Therefore, you should treat your project accounting system implementation as a vital business project. Following a correct approach can boost the implementation speed and accuracy while minimizing errors. Also Read – ERP Software for Construction Read further to learn the steps in implementing a construction company’s project accounting system. 1. Implementation Planning or Project InitiationThe first step is to define the core pieces of the accounting software implementation project. These core pieces include objectives, assumptions, scope, risks, and deliverables. After defining these, consider devising a plan for the entire project. Review your construction business’ projects, processes, and requirements. Look for the areas that are doing well and the ones that need improvement. Take them into account when planning the implementation project. 2. Software Installation It’s time to install the construction industry accounting software onto your computers. Ensure your network and hardware support your new system when doing the same. In addition, see to it you have the necessary hardware setup. 3. Training the TeamAt this point, training the team is not about how to use the system. Instead, you will teach them how to participate in the software implementation process so things run smoothly. 4. System Design PlanNow that the project accounting software has been installed, your employees know how to participate in the implementation process. Before configuring the system to fit your construction business, you should create a system design plan. This plan can entail details about all functional areas, projects, transactions, processes, databases, and security.At the end of this step, your system design document will be in place. This document will demonstrate that your company’s end goal to implement the accounting system is achievable. 5. Accounting System ConfigurationYou can work with a third-party vendor or consultant to configure your Project Accounting Software to fit your construction business based on the system design document. Don’t forget to test everything to ensure the system is working. 6. Clean Up Records in the Old SystemBefore migrating your data to the new project accounting system, clean up your records in the old system implemented in your construction company. Doing the same will make the transition to the new accounting platform more seamless. 7. Data MigrationAt this stage, move all data from your old system to the new project accounting system. Having a plan in place for all the activities needed to transfer data to the new system is advisable. 8. Project Accounting System TrainingBefore starting this phase, you should have a training plan. Working with the accounting system consultant is recommended to curate training materials covering the software’s features, modules, and functions. By obtaining these training materials, you can teach your employees how to effectively use the project accounting software to run your construction business smoothly. 9. Go LiveOnce your project accounting software is correctly implemented and staff is trained, you can go live with the software. It’s time to make the full and final transition to the new platform. 10. Post-Implementation SupportYou can ask the project accounting software company to provide ongoing support through a dedicated helpline or a helpdesk. In addition, consider asking them for free resources like webinars to train your employees on new features and how to use the accounting system better. Read also – Rental ERP Software To wrap up it all! Switching project accounting systems can make a huge difference in how your construction business operates. Up-to-date accounting systems with cutting-edge features and functionalities by eresource can speed up your construction projects’ finance processes and boost efficiency. However, it’s not possible with a correctly implemented project accounting software. Following the above-discussed steps can help you seamlessly migrate and implement the project accounting system in your construction company. A new accounting software will deliver you better reporting and timely information and drive value via vital insights into your projects. Also Read – ERP for Manufacturing Industry