Keeping track of income and outgoings is more complex for construction companies than most other types of business. This complexity arises simply because payments are often staggered over several years. Meanwhile, most project costs are incurred during the first stage. Construction accounting software makes retentions management far easier than it was in the past. However, software alone won’t make your accounts department efficient. These quick accounts department tips will help this crucial part of your business run smoothly.
Reduce paper documents
Ditch the filing cabinets and double-up on digital storage – either in the cloud or on-site. Storing more documents digitally is advantageous in many ways. It frees up office space, reduces misfiling, and, most crucially, makes searching for documents significantly easier. When you have to find documents filed two years ago, quick digital searches through your database are much easier. This will be simpler than digging through countless paper files. When you receive paper documents from clients or subcontractors, scan them in. Then, attach them to the relevant contract file or folder, and give them clear, descriptive titles. This method may require some initial time investment. But you’ll soon make it back through improved efficiency.
Consider the cloud
Cloud storage is arguably safer, more secure, cheaper, and more useful than on-site digital storage. If your accounts team benefits from working from home or outside the office, use cloud storage. It is the only way to give remote workers the tools they need to do their jobs. Remote access options may be needed during the winter period. Such options help when staff may struggle to travel to and from the office. Keeping accounts data in the cloud ensures your team can operate from anywhere. This allows the department to run efficiently regardless of staff presence in the office.
Talk through processes
Business processes in the accounts department can be difficult to change. The department relies on a thorough, methodical, consistent approach to ensure that few errors are made. However, these processes shouldn’t be immune from scrutiny. Have the accounts team walk a senior manager or one of the directors through each process they undertake. Outside eyes may help question established methods and identify areas of inefficiency. Aim to review processes every 12 months or so.
Use integrated software
If your accounts department uses several different systems, each covering a different aspect of the business, inefficiency is clearly present. Look for integrated software solutions that can deal with payroll, contracts and subcontractor management all in one. Data can be linked together automatically across databases – there’s no need to manually transfer data.
Revisit abandoned software functions
Your accounting software is powerful. All but the most basic systems will have plenty of features that you’ve never used. Periodically examine these functions. Could they help speed up a process? What’s the reason you haven’t been using them? If you’re not sure how some features work, contact your software provider. They will be able to advise you on how to utilise these features and ensure that you make the most of your software.
These tips can help to revitalise a flagging accounts department. Looking for more ways to use your construction accounting software more efficiently? Contact your account manager or give the Integrity Software team a call.