However, your software package comes with more additions that provide benefits that are a little less obvious. These surprisingly valuable software features deserve to be used to their full potential.
Reports turn all that data you’ve collected into useful information. Numbers aren’t any use if they’re locked away in an unordered table that’s impossible to read. By using reports, you can quickly gain visibility of key financial processes within your business.
Reports can warn you of impending cash flow issues, highlight projects which are over-budget, and identify where your company is facing rising costs. On a more positive note, reports can also detect opportunities. Use them to figure out which project types your company most excels at and which subcontractors have performed best.
The value in reports is through the visibility they provide. By learning of potential issues as early as possible, you’ve got ample time to avoid them or reduce their impact. You can also use them to plan your strategy for the next month, year, or ten years.
Document management is a decidedly unglamorous area of business. It’s one of those tasks that we’re all guilty of delaying or rushing because it often acts as an obstacle to other, more critical tasks. However, document management features in accounting software can be extremely valuable to construction companies.
Research suggests that 7.5% of paper documents are lost and another 3.5% are misfiled. However, electronic document management can be equally poor if there’s no structure to it. Integrity Software’s Evolution M aims to simplify electronic document management to make it easier for companies to file their digital documents in the right place.
Document management is particularly important if a dispute arises with a client or subcontractor. By keeping all the paperwork for one contract in a single location, with clear file names, you’re in a strong position to defend your company during any disputes. Read more about the report writing functionality in Evolution M here.
Subcontractor management is an extremely time consuming process for construction companies. Software can significantly cut down on admin time, particularly relating to CIS. You’re legally required to verify all subcontractors, file monthly CIS returns with HMRC and maintain full CIS records showing deductions and payments you’ve made.
There are hefty fines for failing to comply with this legislation: £100 if you’re only a day late with a monthly return, rising to £3000 or 100% of the CIS deductions made on the late return.
Specialist construction accounting software automates and streamlines these processes for you, meaning that this legislation requires only a small amount of company time each month.
Also, subcontractor management modules let you manage subcontractor payments more effectively. Paying subcontractors promptly is an easy way to gain loyalty and keep costs down.
The value of time
Additionally, these three features hold significant value because of the time savings they provide. The opportunity cost of spending an hour on admin can be huge – think of all the ways you might spend that hour more productively.
An accounting software upgrade can help you find the time you wish you had to spend on long term strategic planning, marketing, and other aspects of your business. Get in touch to arrange a demo and see our software in action.