How Construction Accounting Software Improves Profits
When investing in construction accounting software the goal should be to improve your entire business, not just the accounting department. Most of today’s construction accounting systems do more than just accounting though. They offer benefits and enhancements for everyone the CEO to the secretary while making the accounting department run much more smoothly. Let’s look at a few of the features that construction accounting software offers.
Make sure quotes are accurate from the start
The worst thing for a contractor is to lose money on a job. It is essential to have the right information up front to provide your customers with an accurate quote from the start. With construction accounting software there is no guessing about how much something costs or whether or not you can make a competitive and profitable quote on a job. You have all of the information you need right at your fingertips.
Allocate costs correctly
Allocating cost correctly can be tricky. It’s easy to say we used so much drywall and so much paint on a project. It’s a lot harder to assign fixed costs, like office staff and equipment depreciation, to a specific job. These costs need to be allocated to jobs though to protect your profit margin. Having the right software is important to allocate costs currently so that the customer pays for the appropriate costs and you protect your profits.
Providing customers with correct invoices is essential to keeping your business running. Making sure that they are up to date and accurate the first time they go to the customer ensures that you get paid the right amount and get paid quickly.
Keeping track of change orders can be a hassle, especially if paperwork gets lost and there is no proof that changes were approved. Having a mobile app that connects to your construction accounting software is a great benefit for change orders though. You can have customers sign change orders right as they happen, which then saves the order in the system back in the office. When it’s time to send the invoice out you have all of the proper documentation you need to send out the invoice with the appropriate amount.
Construction accounting software will help you keep track of which invoices go unpaid as well. Most software packages have a central screen with all of this information available, where you can see how much money is past due and to what degree. With the click of a button you can pull up those accounts and see all their information. Tracking which customers are quality customers and which are not will help you to make better decisions about which jobs to accept and which to decline in the future.
All of your information in one place
Construction accounting software will offer you peace of mind that your financials are up to date and accurate. You can check your daily balance or see one number representing an entire project all on one screen. You can also see your receivables and payables in the same place.
Having software that is customized to your business saves you time and money in many areas of your business. It’s an important investment that will increase your profits in many areas, making sure that you stay competitive in the market as the same time. Construction accounting software helps you make sure quotes are correct from the start, allocate costs correctly, save time by having processes automated, get the correct invoices to customers quickly, keep track of customers that aren’t paying their bills and keep an eye on all of your projects as once. With everything it can do, you will find many areas to decrease costs and increase your bottom line.
C/F Data System’s Structure Blue offers all of these features and much more. Structure Blue is a construction accounting software package designed by contractors, for contractors. For over 40 years C/F Data Systems has been helping contractors increase efficiency, improve business process and drive profitability. See if Structure Blue is right for you.