The Benefits of Using A Construction Accounting Software: An Introduction to TimeSheets
When it comes to the construction business, time management is one of the most significant factors that will define the success of the projects. It not only helps to improve the estimation and scheduling but also adds to the overall management of project-related activities. Construction timesheets are used to record the number of hours workers are putting in while working so that they are paid fairly and help construction managers make informed decisions.
With the help of Construction Timesheet Software, it is easy to track the amount of time the workers are spending on the job site and can be of great value in understanding resource allocation, job costs and in calculating return on investment (ROI).
The construction industry is significantly lagging behind when it comes to technology adoption but things are now changing as more construction owners are keen on technology adoption. Tracking and managing labor is one of the issues that contractors face and if not paid attention, it can cause a construction business heavy losses. This is why deploying tech solutions can increase transparency and greater visibility on overall operations.
For this reason, most contractors started to make a rapid shift towards construction accounting software as technology not only helps streamline important tasks such as payroll reporting but also the overall stress of creating and managing paperwork.
Since traditional practices were not able to keep up with the growing business requirements, ProjectPro identified the scope of the issue and created a resolution with the introduction of timesheets.
When it comes to the most advanced construction estimation software and project management technology, timesheets work as a feature that saves the business for unnecessary downtime. Here we bring you a quick list of the benefits that a construction accounting software like ProjectPro could offer with timesheets.
The primary reason and the most important benefit for which contractors should switch to timesheets is the advantage it brings to payroll reporting. It not only saves time but also grants quick sharing options with the user. Such an arrangement reduces the time for decisions related to finances and also improves transparency when it comes to contractors, project managers, office staff and clients.
The use of timesheets allows real-time reporting on the labor hours posted to each job. Further, it cuts down the chances of inaccurate information that can often lead to difficulty in processing payroll. In simple words, it provides control and accuracy to the payroll process and eliminates any scenario where an employee is overpaid or underpaid. Moreover, the information can also be used to track expenses and remove any expenditure that may happen due to poor payroll reporting.
Avoid Time Theft
Another good reason to choose timesheets and construction accounting software is to prevent any roundup time that workers do at the site. Timesheets could keep track of the exact work time for which workers must be paid. As per the reports of the American Payroll Association, a large number of construction companies pay thousands of dollars in payroll expenses each year due to time theft.
However, when you are working on a construction management software solution that gives you the ability to accurately record the time a worker spends on the site, it adds up to revenue and profits.
To ensure construction projects are completed and delivered on time, overtime is a common practice at the site. But when you are using a construction accounting software like ProjectPro, which specializes in payroll reporting and payments, you always have the ability to manage overtime. Using timesheets not only helps you to avoid unwanted overtime payments which also avoid unnecessary additions to the budget.
Construction scheduling software with accounting reporting capabilities can keep the payroll team alert when it comes to discrepancies with the work hours posted or if payroll amounts exceed the maximum threshold of budget. This data can also be used to plan the need for overtime or calling for additional labor to stick with the scheduled projects.
Improving Estimates & Billing
Last but not least, contractors who need to improve their billing and estimation process must choose a construction accounting software with a timesheets feature. It allows you to define your budget by cost codes, which without that ability, may cause inaccuracy in the payroll reports and billable hours. Payroll tracking not only helps manage your budget, it can affect your entire project pipeline.
It helps to improve understanding of job costs. Also, the estimates for your existing projects can be used to add more precision to initial estimates for similar projects in the future, saving time and resources. This eliminates the struggle to define and to assign job cost codes, which may result in loss of information and inaccuracy.
All in all, using a construction accounting software that brings intelligent features like timesheets can help streamline workflow and finances. It can help the contractors using manually operated systems or paper payroll forms to record the data to lose their finances.
Timesheets for construction can be used to calculate payroll and keep track of workers. Today there are different apps and software to ensure that timesheet data collected is standardized and can be streamlined. In a collaborative environment, it is beneficial to keep a track of the number of hours worked and the project manager will know beforehand how much time is required for a particular job. Hence, it is a useful addition for a construction business and boosts productivity across board.
Other than that, new timekeeping methods that are cloud-based provide you the flexibility like never before and can provide you useful insights whenever you want. It allows construction managers to log in anytime and stay updated on project progress.Thus, there are significant dividends in adopting construction timesheet software that can help all stakeholders across construction businesses.
Hence, construction businesses must move away from manually recording the number of hours worked in time books and paper-based timesheets to digital ones. Construction technology can put disconnected systems in order so that there is no duplication of tasks. The cost of missed production is high today. Therefore, the level of data that is captured by timesheets can make the process of end-of-the-month claims easier. Over and above, construction managers can monitor performance and take corrective actions to keep a project on track.
Successful adoption of construction technology can prevent data delays and address the need for accountability where required. It also becomes easier to manage employee data and forecast job costs and assist in taking corrective actions to keep the project on track and meet deadlines. Moreover, to have an impact over your bottom line and for increased savings, it’s time to switch to digital time sheets.
To stay competitive when the construction ecosystem is becoming increasingly complex, digitization will help you scale. Construction timesheets give you an overall picture of the time utilized and helps you map a general pattern of time spent. In addition to this, it also helps you reconcile time entries both for on-site and off-site workers because of the reservoir of data at your disposal. Identify negative patterns early on, take corrective measures and get a comprehensive overview of your construction operations.
Moreover, it all improves the year over year revenue by managing expenses as well as giving you complete control over projects.
Still not sure about how timesheets work? Explore ProjectPro at its full capacity taking a tour through its accounting, CRM, ERP, and project management features. Schedule a free consultation call or request a demo !