The construction industry has seen its fair share of challenges in recent years. One of the most significant disturbances to note was the outbreak of COVID-19 in early 2020. As we move into the second quarter of 2021, many companies have been able to re-start projects, with the implementation of social distancing and improved safety practices. While it may seem that things are slowly getting back to normal, the effects of COVID-19 are going to be felt for years to come. Widescale shortages of raw materials, supplies, and workers, combined with shipping delays, is cause for concern.
Even before COVID-19, many construction companies were emphasizing the need for balance sheet and cash management. The pandemic has escalated the importance of cost management, making the availability of information critical to business success. Luckily, technology has enabled construction firms of all sizes to improve their cost management procedures.
Advances in construction technology, specifically construction accounting software, has minimized the cumbersome process of compiling cost information and manual data entry. Running cloud-based software allows field employees to enter labor and costs easily and eliminates much of the manual entry by office staff and the possibility of losing paper documentation that could result in missed costs and pertinent job information. Sophisticated cost management, like you will find in ProjectPro, simplifies the project life cycle. From complex job quoting to project close out, having the right software is key to keeping costs in check and margins as high as possible.
What Advanced Cost Controls & Enhanced Reporting Means?
Reluctancy to change can be detrimental for companies, as information disconnect and the potential for human error can become costly. Having real-time access to data means your finance team is able to identify and research cost concerns immediately. In an industry where costs can get out of hand quickly and low margins are quite common, keeping costs under control is essential. Along with keeping your current projects on target, having the ability to look backwards at previous projects and business trends helps your company fine-tune their estimating process as well as learn from previous errors/decisions that may have created losses. Likewise, you can learn from projects that were successful and use them as models for the future.
The technology being utilized in construction accounting software make budgeting and assessing company performance easier than it has ever been. It also provides in-depth data related to performance of departments, individual employees, projects and nearly any other facet of business you can think of.
Simplified Cost Management
In case you are wondering how technology could aid in improving the cost management process, it is the shared cloud network that increases connectivity and collaboration. The use of construction accounting and project management technology by construction firms have brought the field and office teams closer than ever when it comes to communication. Such easy connectivity allows field employees, project managers and other out of office staff to work collaboratively without the need to be in the same room. The convenience of cloud-based software is not only changing how teams interact, it is also cutting down on response time to business and/or project risks.
Cost management has always been a concern for the construction industry. Whether you are an independent contractor or a global firm, managing costs is vital to success. As we navigate the post-pandemic world, we can expect to see tighter margins than we have ever seen.
Disconnected, legacy, software solutions that may have been sufficient in the past could result in major costing errors that the company may not be able to recover from. The cost of upgrading to a cloud-based platform with enhanced software is minor compared to the risks of mismanaged costs and using outdated data to make financial decisions.
Still, wondering how construction management technology could help drive your business goals? Reach our experts at ProjectPro to learn the benefits of implementing our construction accounting software.