In order to create a business environment in which information-based decision making becomes a natural part of your construction company’s culture, you want to consider the four key components of construction accounting software. The four key components are: Accounting, Project Management, Estimating and Security. The most important aspect to consider when upgrading your construction software is do the key components integrate? Your construction software package should work in all areas of your business, from start to finish.
Considerations When Buying Construction Accounting Software:
- Go Construction Specific: Contractors have highly-specific processes like job costing, change management, retainage, union payroll, and buyouts. A generic accounting system won’t be able to handle these processes without extensive customizations or workarounds. Unless your software is able to manage these specific processes and track data related to them, you will not be able to get the quality of information required to generate timely metrics and key performance indicators.
- Understand Your Real Needs: Document a dozen or so your most complex business challenges. Communicate these business concerns to the software vendors on your short list. As you are viewing demos or test driving various solutions, guage and rate how simply each solution solves your issues.
- Make Sure It Covers All The Bases: Confirm that all the modules tie together into one seamless system. From financials and job costing to estimating, document management, inventory, purchasing and project management – information should flow without bottlenecks.
- Plan for the Long Haul: Consider where you want your business to be in five or ten years. Does the software provide room to grow? Is it easy to add additional functionality? What is the vendor doing to innovate and enhance the solution?
- Know the Vendor: Finding the right relationship and commitment is necessary in any vendor relationship. How long has the software vendor been in business helping construction companies? Do they have a local presence for easy access to training and support? How many construction customers do they have? Make sure they have a team in place of Certified Consultants to guide your company through an implementation and be around to support you for the long haul.
For additional information regarding the purchase of construction accounting software, please view “Best Practices in Construction Accounting Software”.
Founded in 1996, Plumb’s mission is to help entrepreneurial companies and high-net worth individuals achieve their business and financial goals by providing an unparalleled array of customized, effective and trusted accounting services, software and counsel. Through proprietary systems, Plumb becomes a highly effective extension of internal client operations, ensuring timely, dependable and cost-effective results. Plumb is an authorized Sage and NetSuite solution provider and developer of Contractor V software.