Project Accounting is common method utilized by managers to monitor the profitability of their business operations on a job by job basis. While projects may differ among organizations, the demands in a business management system to measure the financial progress and its associated costs increase. Regardless of which application you employ to aid with Project Accounting tasks, there is several key features every business management solution should have right out of the box.
First, your system should provide easy-to-use project profitability reports that can be cloned and customized based on the particular job. In addition, the reporting functionality should give you the flexibility to compare a project’s actual budget in relation to multiple budget scenarios.
Project Budget vs. Actual Report
Next, your system should account for time cards and labor costing. From reviewing to approval, the support of time card entries for billing as well as ability to apply labor costing at actual or standard rates is a time saver.
In conjunction with time cards, you should also have functionality to create, report at desired frequency, approve, and submit for reimbursement expenses incurred from each individual project.
Last and most important, the above job costing features should not only be seamlessly tied to your accounting software through its General Ledger but also integrated with your CRM system. In doing so, you gain real-time visibility in tracking the overall financial success of a project from its earliest inception to final transaction.