6 Things Construction Companies Should Be Doing in Accounting
In construction accounting, managing cash flow and optimizing for maximum job profitability is a daily responsibility. Profit margins can be extremely narrow and contractors need to do everything possible to increase construction accounting efficiency to continue to grow. That means projecting job costs, identifying problem areas before they arise, running labor analysis, and constantly measuring productivity. Here are a few tips that will help.
1. Prepare for the Future Now
Good ideas feel great. Plans can look impeccable. However, reality will still, inevitably happen. If you want to grow your company, dream big but plan now. Budget and bid accordingly. Usually the lowest bidder is synonymous with low quality. If a contractor is put in a situation where it’s a race to the bottom, it’s often a project the company isn’t all the way proud of. Budget and bid fairly and have a construction accounting system in place that can and will keep your company on track financially. Bookkeeping cannot be an afterthought when preparing for the future today. Professional construction accounting software made specifically for contractors will go a long way in helping your company prepare for the future right now.
2. Track and Analyze Everything
It’s easy to let receipts fall by the wayside, then suddenly you’re wondering why your project is way over budget. This isn’t just buying a few extra things here and there, it’s also employees working overtime, additional subcontractors being added to the project, and other unforeseen expenses. Tracking is important, not just for keeping receipts at tax time, but also for managing job profitability in real time. Handwritten notes won’t help with this, and an Excel spreadsheet isn’t much better. Contractors benefit greatly from construction accounting software that’s specifically built for the job. Construction software that’s made to track the things contractors deal with every day, backed by training and implementation from industry experts.
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3. Know the Rules and Follow Them
Between building regulations, employee laws, taxes and everything in between, there’s a lot of rules within the construction space. It’s difficult to be an expert in every detail a complex job entails. Advanced construction software can help keep things in check and enable contractors to be an expert in the unique subtleties of construction. The construction software a contractor chooses needs to be flexible enough to manage rules and regulations as well as work with construction payroll processing to ensure compliance.
4. Back Up Your Data
Extreme weather, accidental damages, or even hard drive failures can lead to loss of critical business data. Insurance companies can payout for damages, but they cannot replace lost paperwork or the information needed to run a business. At a minimum, have a backup hard drive of your critical job and business data. If the main records are lost, having a copy to reference can save a project from failure.
5. Use a Cloud-Based Accounting Software
Utilizing the cloud is typically more secure than a hard drive and also enables your team to work more efficiently. Ditching paper will help a company save in a few ways. With no physical printing and storage, you save money on paper, ink and space. With the cloud, construction accountants can execute critical business functions right from the office and easily communicate directly with the field.
In addition, with Deltek + ComputerEase’s field-to-office application, FieldEase, everyone in the office and in the field can stay on the same page with access from anywhere, anytime. FieldEase streamlines administrative tasks and increases job efficiencies. The seamless integration of FieldEase with your existing Deltek + ComputerEase system allows a contractor to access information and reports in real-time.
6. Don’t Be Afraid to Ask for Help
Deltek + ComputerEase is focused on enabling contractors to get the most out of their construction accounting software. Any software solution is only as good as its training, and our training and implementation specialists are here to make sure you are positioned for success. Talk to construction software experts when problems arise. Have a question? Ask! We have a team of consultants and additional resources including training webinars, videos, personalized support, and more to ensure you have the tools you need for job success.
To learn more about how Deltek + ComputerEase construction accounting software can increase job profitability and help grow your business, request a demo today.
About the Author
John is the Vice President and General Manager of Deltek + ComputerEase, the leading provider of accounting, project management and field-to-office software for the construction industry. In today’s rapidly changing and fast paced world, a big part of John’s role is to ensure that ComputerEase equips clients with the most cutting-edge technology. Prior to joining ComputerEase 22 years ago, John spent a decade working for a large mechanical contractor.