Financial Reporting with Construction Accounting Software
As a construction company, you’re always looking to increase the return on investment (ROI) on your projects. One simple solution is to use construction accounting software to manage the financial reporting tasks associated with your projects and company.
When a job is complete, project managers and finance teams review the project reports and do the number-crunching to gain a better understanding of the project’s overall profitability.
Construction accounting software makes this process far more efficient and insightful, with access to financial reporting information at the touch of a button. This construction tool boosts ROI by improving project efficiency, productivity and reporting.
Benefits of Construction Accounting Software
In the construction industry, business accounting is about far more than profit and loss and maintaining a healthy cash flow. Construction financial software also involves project accounting, estimating, job costing, and project management.
The good news is that construction accounting software — typically included as a module within an enterprise resource planning (ERP) system or project management software — can simplify accounting and financial tasks. This enables you to manage projects better and monitor project budgets and the company’s finances more accurately.
With the right construction accounting software solution in place, you’ll be able to:
1. Streamline your accounting processes
You’ll save time and money by eradicating costly errors and delays. Process improvements and increased accuracy will help you to manage your projects and the company more efficiently.
2. Monitor the company’s finances
With cloud-based accounting software, you’ll have fast, secure access to your financial records at any time and from anywhere with an internet connection. Monitoring cash flow will be easy because the data (and your money) will be at your fingertips.
3. Track project financials
Project managers and accountants track financials to understand which stage projects are within their lifecycle. If an ongoing project has very little budget remaining, the project financials will shed light on the reasons why and swift action can then be taken to prevent the project from going over budget.
4. Simplify invoice management
Transaction records are vital in construction: every sale and purchase must have a valid invoice for financial reporting and invoices need to be retrieved swiftly. Construction accounting software records every transaction automatically and stores the information securely in a central location.
5. Calculate asset value accurately
Construction accounting software enables you to view your asset records information quickly and easily, including construction financial data, location, depreciation, revaluations, maintenance cycles and maintenance contract details easily. You’ll be able to make informed choices about whether to keep, maintain or sell company assets.
6. Share information
A cloud-based construction management system has many benefits, including access to real-time information about your construction projects, including their financial health. It enhances collaboration and keeps all relevant stakeholders in the loop. Project managers and finance team members can share information easily, which improves communication and optimises decision-making.
How to Maximise Construction Project ROI
Having a construction project management system in place that enables you to digitise your day-to-day processes can significantly increase productivity. Streamlined processes, enhanced communication and simplified account management, all drive up profitability. And valuable new insights provide a better understanding of projects and improve both monitoring of construction job costs and planning for future projects.
Using specialised construction software is the most efficient and accurate way to control costs at all stages of a building project and to manage your company’s finances more effectively. Construction firms often understand the benefits of construction software solutions but may be wary of the implementation costs.
So, how do you prove ROI? It’s usually quantifiable, but the cost-benefit analysis of using project management and accounting software for the construction industry may be more complex than tangible costs. We’re talking about significant benefits for a company, like — streamlined processes, improved accuracy, real-time access to information, enhanced communication and better overall financial management. These all make construction projects – and construction companies – more profitable.
RedSky’s Financial Software helps you reap the benefits of construction accounting solutions. Our fully integrated suite of construction financial tools will enable you to manage your documents better and simplify financial reporting.
Are you ready to improve the ROI of your construction projects? Let us help. Learn more about how RedSky’s construction ERP solution and financial software can improve your profitability by requesting a demo. You can also get in touch through our contact form or by giving us a call at +44 020 3002 8600.