Benefits of Engineering Accounting Software

Engineering accounting software is a specialised type of software designed to meet the specific needs of engineering firms and companies that provide engineering services. This industry-specific software is designed to provide the tools and functionalities needed to efficiently manage the unique financial aspects of engineering projects from initial budgeting through project completion and financial analysis.

Let's dive deeper and see how these specialized features translate to real-world benefits for engineering firms.

Engineering accounting software is distinct from general accounting software in several ways, primarily because it's tailored to the unique needs and workflows of engineering and architecture firms. Here are some key differences:

• Project-Centric: Engineering accounting software is project-centric which means it allows firms to manage their budgets and financials with project-specific time and expense tracking. This is crucial for businesses where projects have a significant impact on revenue and expenses.
• Job Costing: Engineering accounting software often includes robust job costing features, enabling firms to allocate costs, track costs to specific projects and calculate the profitability of each project. This is essential for understanding the financial health of individual projects.
• Time and Expense Tracking: The software allows employees to record billable hours and expenses for specific projects so financial leaders can monitor project performance throughout the project lifecycle. This data is essential for accurate billing and project cost analysis.
• Project Billing and Invoicing: Engineering accounting software provides project and client-centric invoicing capabilities, allowing for progress billing, milestone-based billing and expense pass-through. These features are tailored to the unique invoicing requirements of engineering projects.
• Overhead Allocation: Managing overhead costs can be a challenge for engineering firms. With accounting software for engineering, firms can appropriately manage and allocate overhead costs to projects or profit centres and have better visibility into the impact of overhead costs across the business.
• Compliance and Reporting: Engineering accounting software may offer specific reporting and compliance features that support industry-specific regulations and standards.
• Integration with Project Management: To streamline operations, engineering accounting software often integrates with project management and resource management tools. This allows for real-time tracking of project progress, resource allocation, project costs and financial data.
• Industry-Specific Terminology: These software solutions often use terminology and data structures that are familiar to engineers and architects, making it easier for industry professionals to use the software effectively.

Engineering accounting software is designed to meet the specific financial needs of engineering firms. Here are a few benefits:

Gain Control of Project Costs

To monitor project costs, engineering accounting software offers a comprehensive set of tools and features. You can easily track time and expenses for specific projects from anywhere and on any device. This flexibility ensures that you have accurate data at your fingertips, enabling more informed decision-making.

Often, the software contains intuitive project selection and expense codes improving data integrity and minimising errors. In addition, the software can simplify the process of categorising expenses and projects, reducing the risk of inaccuracies in financial records.

Engineering accounting software like Deltek Vantagepoint includes automated timesheet and expense report approvals with easy-to-use workflows. This streamlines the approval process, making it more efficient and less prone to delays. Project costs can be managed with accurate and faster allocation of actual expenditures. This visibility allows project managers to make adjustments and allocate resources where needed most, ensuring that your projects stay on track and within budget.

Create Accurate Invoices Every Time

Generating accurate invoices is essential to getting paid faster and improving cash flow. Engineering accounting software offers various features to achieve this goal by allowing you to review and determine which project costs to include on an invoice. This step ensures that you include all appropriate billable hours and expenses. You can also hold, delete, write off and transfer labour, expense and unit transactions as needed, allowing you to make adjustments as required and improve the accuracy of your invoices.

Before generating a final invoice, you can update the project percent complete and modify the invoice format. This customisation ensures that your invoices meet your client's expectations and follow your company’s branding guidelines.

Engineering accounting software allows you to leverage batch billing options to speed up your invoicing process or work project-by-project so you can choose the approach that best fits your workflow and client invoicing needs.

Accelerate Month-End Close

Efficient month-end close is crucial for staying on top of your financial health. Engineering accounting software offers several features to expedite this process. You can set up a variety of recurring journal entries to speed up the monthly and annual close process, plus automate repetitive tasks, making the closing process more efficient.

With this industry-specific software, you can spend less time correcting errors and chasing late submissions with accurate electronic timesheets and expense reports.

Manage Profitability with Project and GL Budgeting

Maintaining profitability is a primary objective of any business. Engineering accounting software allows you to filter and drill down to gain a deeper understanding of how projects, business units or offices are performing. Firms can review their project profitability and also review the overall firm profit and loss (P&Ls) statements so they can identify areas where improvements can be made. By viewing and analysing budget vs. actual performance by project, business unit and office location company-wide, you can better spot challenges and take corrective actions.

Take Accounting and Financial Management to the Next Level

Engineering accounting software is designed to elevate your accounting and financial management processes to new heights and contains features to automate repetitive processes with intuitive workflows so you can gain efficiency throughout the accounting cycle. This automation reduces manual effort and minimises errors.

Leverage a powerful approval engine in the software to streamline the approval of invoices, timesheets and expense reports. Efficient approvals ensure that financial processes flow smoothly and that financial reporting is accurate.

With industry-specific accounting software, you can create dashboards to help supplement period reports and allow stakeholders to access the up-to-the-minute data they need to make strategic decisions. Real-time data access provides decision-makers with the information they require.

An additional feature in engineering accounting software, such as Deltek Vantagepoint, allows project managers to easily review and approve client invoices electronically and actively manage accounts receivable. This streamlines the client billing process and ensures that accounts receivable is effectively managed.

 

Choosing the right accounting software for your engineering firm is a critical decision. With so many options available, it can be difficult to know which features and capabilities are necessary to meet your business needs. To make the best selection, consider the following guidelines when evaluating different solutions:

• Know Your Business Requirements: Start by understanding your business needs. Consider the type of data you need to track, the frequency of reporting and the number of users that will be accessing the software. Understanding these elements will help you select a solution that meets your current and future requirements.
• Invoicing and Billing: Consider the invoicing capabilities of the software. It should support project-specific invoicing, allowing you to bill clients based on milestones, time or fixed-price agreements. Customisable invoice templates and automated invoicing can also be valuable.
• Look For an Intuitive Interface: The accounting software should be easy to use, with a clear interface and workflow. Look for a solution that includes a powerful approval engine to streamline the approval process, as well as automated workflows for repetitive processes.
• Consider Scalability: As your business grows, you may need additional features or capabilities to support it. Be sure to select accounting software that is easily scalable and can adapt to changing needs.
• Check For Integration: Finally, ensure that the software can integrate with other applications and systems. This will help to streamline processes and increase efficiency across the board.
• Review Security Features: When selecting engineering accounting software, be sure to review the security features included in the solution. Look for features like encryption, two-factor authentication and role-based permissions to ensure that only authorised users have access to sensitive financial information. These additional layers of security will help protect your data and prevent unauthorised access.
• Consider Technical Support: Finally, evaluate the technical support offered by the software provider. Look for a vendor that offers 24/7 support and specialized resources to help with any software-related issues.

Engineering accounting software is important for firms as it addresses the unique financial and operational needs of the engineering industry, helping them manage projects efficiently, maintain financial compliance and make informed business decisions.