Successful Construction Teams demand flexibility and insight
It is essential to centralise construction company financials, comprehensive Construction ERP Platform streamlines critical systems allowing your entire construction team ease of use while delivering valuable financial reporting.
Self-Performing, Cost Performance
Labour and Equipment costs carry a large portion of project financial risk. Run away direct costs can dramatically effect project outcomes. MYOB enables weekly even daily job site cost reports so stakeholders have direct knowledge of current costs accrued onsite.
Signs there’s more work to do:
- Are you transposing timesheet information to process payroll?
- Manually updated budget reporting?
- Have no project cost budgetting because your payroll doesn’t support
- Unable to cost equipment to the project?
Process Driven, Checks and Balances
Contractors rely on effective AP process that govern purchase approvals, invoice payments and open collaboration with internal and external teams. Designed correctly, a single string of Accounts Payable automation will speed up procurement without the risk of unapproved supplier payments.
Signs there’s more work to do
- No formal process to populate P.O’s from estimate data
- Lack of purchasing and invoice approval process
- Inability to support bank feeds
- Relying on transacting directly to the General Ledger, no project cost code
Fluid, Effective, Transparent
Managing multiple projects with varying cost structures requires a firm reporting structure that empowers team members so everyone can contribute to the project success.
Developing and maintaining reporting structures can be challenging without in-built job cost reporting.
Signs there’s more work to do
- Job cost reporting is time consulting to produce
- Managing monthly progress claims from spread sheets
- Retention being tracked outside of AP Reporting
- Not able to manage variations as a profit centre
Consolidate Financials Easily
Running multiple entities in construction to reduce financial risk is common, but this can create challenges down-stream to achieve accurate easily produced company financials and cashflows.
Signs there’s more work to do
- Spending unproductive time consolidating Excel reports
- Unable to easily produce rolling cashflow reports
- Unaligned company to company general ledger structures
- Complex or blotted account structures
Short articles that create BIG results!
The Most Valuable Report on a Contractor’s Desk
If you don’t recognise the term WIP, join the crowd. Work In Progress confuses most contractors – mainly because it was originally used by accountants and bankers as a financial instrument for the manufacturing sector. But due to increased complexity in..
Understanding WIP Accounting for Construction
In some cases, it is simple to determine the timing for Revenues Earned, once ownership of a product is transferred or a service is complete, revenue is considered to have been earned. But if revenue recognition is delayed until the end of a long-term contract, the Matching Principle of…
Is your business managing construction variations effectively?
Variations management comes in different forms but the criticalness of getting paid or confirming payment, appropriated correctly, is a crucial function for contractors. From my experience working in construction management..
