Project Accounting Should Not Only Look Back, but Use Data to Plan for the Future
Project-based businesses have unique challenges that make running the company more complicated than a simple service- or product-based business. You’ve got a lot of variables to juggle, including timelines, collaborators, labor costs and inventory for each project. If you’re a government contractor, project accounting becomes even more complicated. In order to support this level of complexity and harness the data to improve your business moving forward, you need supportive technology.
In project accounting, it’s easy to get tunnel vision and focus on each project individually to analyze profitability. However, to become more competitive, you should be utilizing that data to improve projects moving forward. Here are a few new ways to think about project accounting:
Quality data for quality results: If you want accurate project accounting, you need accurate data put in the system. Inaccurate data leads to inaccurate estimates and poor budgeting practices. Your employees may also be reluctant to track their time, making it difficult to demonstrate their contribution to a project or estimate true labor costs for a project. As a result, it’s difficult to refine estimates and project budgets to improve profitability.
You need a software system like Intacct that handles the complexity of project accounting. Intacct empowers you to refine your data capture, and then after processes have been refined you can use your most profitable past projects as a template for future estimates.
Intuitive project management: A complex, highly-technical front end may be fine for your IT department to manage, but when you choose project accounting software, make sure it’s user-friendly for all team members. An intuitive system makes training and implementation simple, and integrates with your other systems to provide seamless processes.
Updates and warnings: Look for a project accounting system that eliminates some of the checking that you have to do with multiple projects happening at once. A system like Intacct tracks the progress of your project with updates that warn you when you’re bumping up against a deadline or getting close to being over budget.
Role-based visibility: You need to see different data than the other members of your team. Look for a system that provides role-based visibility so that you can see the data that is most critical for you, while others can refine their own customized view. Intacct offers customizable, role-based dashboards that give you one-click access to such information as a project overview or KPIs across the company.
One Vision Solutions offers Intacct as a project accounting solution for small- to medium-sized project-based businesses. It is a cloud-based solution, so it is affordable for any size business, with little investment in IT and the ability to purchase only the number of subscriptions you need. Call One Vision Solutions to learn more about Intacct’s solutions for project accounting.