Many construction companies have implemented and are currently using some form of construction accounting software. Simultaneously, they are also involved with a project management software to help them keep track of all their current and upcoming jobs. Finally, many construction companies use some type of project estimation software. When combined together, you’re left with a company that is running three separate processes on three separate pieces of software.
While it’s not abnormal for a company to be using this many pieces of software for their day-to-day operations, it can lead to issues because the processes are inherently intertwined. This is particularly the case with accounting and project management, which are so reliant upon one another they essentially cannot exist independently.
A Necessary Reliance
This wouldn’t be a large issue if construction accounting and project management weren’t so co-dependent. When it comes to accounting basics and project management, the two are so closely aligned. Without knowing the financial situation of the company, one cannot ascertain the level of new projects that can be undertaken.
The problem at hand then becomes how to make construction accounting and project management coexist in such a way that neither impedes the process of the other. Without proper accounting procedures, project management cannot be planned and executed, and without proper project management, accounting cannot known the costs associated with each project.
The processes must be undertaken simultaneously.
Achieving Balance Between Accounting and Management
By utilizing systems like Sage, construction companies can make it easy to balance their accounts while planning for new projects.
With Sage accounting software and project management software, accountants and project managers can share their data with one another and present in such a way that creates a streamlined process for both departments.
Doing so will allow them to avoid errors in estimated costs for projects, forecast future costs and investments and solve communication issues that tend to lead to oversights.
It is this disconnected system that causes so many construction companies issues in their budgeting. When budgets do not add up, or mistakes are made, it is easy to overspend on a project, causing a serious slowdown in taking on new work. On the other side of things, overwhelmed project teams can overlook mistakes in project costs that lead to errors in the overall budget.
Only when the two departments have the same figures added up can the business move forward with new projects.
Always Rely on the Best Software
When it comes to construction accounting and project management software, you have to choose a package that has everything you need. At Techware, we specialize in working with our clients to find out what their needs are and recommend the right software for them. We can help you find the right solution and show you how to implement and use it. Contact us today to get started.