4 Reasons Why Your Business Should Be Using Construction Job Costing Software
Lots of construction companies still use generic accounting software, despite construction-specific software being available which can make construction job costing far simpler to manage.
There are lots of benefits to be gained from installing construction accounting software, and yet lots of companies are still using manual and outdated systems.
Here’s 4 reasons why your business should be using construction job costing software:
1. Instant visibility of contract profitability
Get a clear picture of how your jobs are performing in real-time, by comparing committed costs with original budgets. This helps you to see why some jobs are more profitable than others – and most importantly why that might be the case.
This means that you will be able to ignore the least profitable jobs, and avoid these types of jobs in the future. But not only that, you will also be able to determine why these jobs have cost you so much money, and put processes in place to try and mitigate this in the future.
Job profitability is accessible to as many people as required throughout the business, providing real-time information at the touch of a button.
2. Respond to trends
It can be hard to spot trends and react accordingly when you’re not using construction specific job costing software – spreadsheets and other types of document simply don’t allow for this kind of functionality.
If changes need to be made to a current job, then your business needs to be able to respond quickly. With construction job costing software like Evolution Mx, you will get complete visibility of what changes you can afford to make and how far behind they’re likely to put you. You will also be able to determine how far behind these changes could put you.
All construction businesses recognise that the sooner you spot adjustments and respond to them, the better your business performs.
3. Improve contract management
Running a successful business relies upon your team being managed adequately, along with making sure that jobs are completed on time and things are moving along as planned.
Construction job costing software allows businesses to monitor and measure their subcontractor performance along with assessing work in progress.
Without a Contract Manager having proper visibility of the status of jobs at any one time they’re unlikely to be able to spot where improvements could be made to increase productivity.
With job costing software like Evolution Mx businesses can quickly see whether jobs are on schedule or whether changes need to be made.
4. More accurate estimations
Predicting if a job will be profitable or not is near on impossible without construction job costing software.
Before taking on a project, construction businesses need to determine costs and profit margins in order to decide whether it’s worth the time and resource based on similar previous jobs. Making accurate predictions for future contracts is an invaluable tool in deciding whether to take on upcoming jobs according to their profitability.
What’s more, all of this information can be generated instantly using reports and dashboards, ensuring the information is available right when you need it.
Running a more efficient and profitable business is easy when you have job costing software in place. To find out more about our award-winning Evolution Mx construction accounting system reach out to us here.