The construction industry is a very competitive business. Successful builders and contractors understand this and are turning to construction job cost accounting software to control costs, better manage cash flow and provide more accurate financial reporting for themselves, financial institutions and for reporting of taxes.
These same companies are looking to expedite their job costing, billing, payroll, bookkeeping and financial reporting so they can quickly make more informed decisions.
They’re turning to construction specific job cost accounting software from Contractors Software Group (CSG)
Why are builders turning to construction specific job cost accounting software from Contractors Software Group?
To Control Costs
Successful builders and contractors understand the need to track actual versus budgeted costs by job and by category of work to control cost overruns. Unfortunately, due to the fact that client’s change their minds or there are unforeseen issues where contract amounts and/or budgets change throughout construction.
Successful construction companies have found it important to track job changes for both the client and changes made to each category of work within a job. They’re finding that by tracking actual cost to the original budget, change order budget and revised budget is key to improved control of cost overruns.
It is change orders where most generic accounting systems breakdown and job cost accounting programs from Contractors Software Group (CSG) take controlling cost to another level.
CSG’s job cost accounting software tracks the above and also prints and tracks client change orders along with the subsequent budgets associated with those changes. It offers an over budget warning feature when entering vendor invoices so It reduces the chance of over paying or double paying vendors too.
To Managing Cash Flow
Successful companies understand that it is better to manage cash flow using the accrual basis rather than a cash basis no matter if their company is on a cash basis for tax purposes. Recording vendor invoices and managing the paying of those invoices is one key in managing cash flow. The same is true with generating and recording client’s billings and the payments against those billings helps controlling cash flow. Generating accounts receivable and vendor payable with aging reports aide in managing cash flow too.
Contractors Software Group’s three series of job cost accounting system does all the above but takes managing cash flow to another level by tracking clients billings and payments by job along with tracking actual costs and paid costs by job and by category of work.
CSG’s job cost accounting systems also generate cash position reports that shows if you’re using your own money or using the client’s money to finance jobs. It also tracks bank draws by job in aiding in managing cash flow too. Many successful companies manage cash flow by paying their vendors when they get draws or get paid by their client. CSG’s job cost accounting programs have a feature that allows to select and pay invoices by job, by vendor and/or by due date to take advantage of discounts.
For More Accurate Financial Reports
To run a successful business generating accurate and accountable financial reports is key to making good management decisions. They are also helpful if you’re sharing your financial statements with financial institutions and outside accountants for tax purposes.
Generating balance sheet statements shows the company’s net worth at any given time while income statements show the profit and loss of a company for a given period.
Unfortunately, in the construction business it is difficult to get an accurate overall picture from just a profit and loss statements. Because, if you just paid vendors or paid employees it will show you’re losing money. If you just generated client’s invoices it will show you’re making a lot of money.
What all successful construction companies depend upon are accurate work-in-process reports, which shows exactly where you’re at on every job. Work-in Process reports use revised job budgets by category of work to help determine percentage of completion and how each job is doing. Without accurate up-to-date budgets you can’t generate reliable work-in process reports.
The #1 reason successful companies don’t use generic accounting programs like QuickBooks is because they can’t generate accurate and accountable work-in-process reports. If you’re trying to get a line of credit from a bank or bond, most financial institutions require work-in- process reports along with accountable balance sheets, income statements along with the transactional detail associated with those statements for backup.
Contractors Software Group job cost accounting systems generates work-in-process reports along with accurate and accountable financial reports to better manage your business. They will provide financial institutions and outside accountants more accurate and accountable information to help them make more informed decisions for your building and contracting business.
To Expedite Job Costing, Billing, Payroll, Bookkeeping and Financial reporting
Contractors Software Group’s job cost accounting software will expedite your job costing, billing, payroll, bookkeeping and financial reporting needs for lump sum, cost plus and/or time & material jobs. CSG’s job cost accounting programs are single entry and have the following integrated job cost accounting modules available:
- Job Cost
- Accounts Payable
- General ledger
- Accounts Receivable
CSG’s job cost accounting software has other construction specific modules and features to handle specific needs of a construction business, which include but not limited to:
- Purchase Order Management module
- Subcontract Control module
- Vendor workers comp and general liability tracking
- Employee workers comp insurance tracking
- Change Order Management – Generates and track client change orders and associated budgets for those changes
- Progress, Draw Requests, Cost Plus and T&M billing
- Handles retainage
- Completed contract or percentage of completion accounting methods
- Integrated with CSG’s estimating products to eliminate the need to re-enter new clients, job information, contract amounts, budgets by category of work and approved purchase orders.
- Plus, much more!
For more information on cost accounting software from Contractors Software Group go to:https://contractorssoftwaregroup.com/construction-software-solutions/job-cost-accounting-software/