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Capabilities of Construction Job Cost Software

 

Like most enterprise-level software, your requirements for job cost accounting ERP software will vary widely according to the type of work your company does, the financial models and controls you have (or need to put) in place, budget and infrastructure considerations and integration goals. At minimum, you'll want an installation that provides you with the following basic accounting modules:

  • General ledger
  • Accounts payable
  • Accounts receivable
  • Payroll
  • Job cost

One of the most important requirements for any business, however, is to choose a system that can scale with your company. A basic accounting system may be all you need now, but as your company grows it's usually more cost-effective to be able to add capabilities to a modular "system" than have to scrap individual applications you've outgrown and start over.

For example, if you do significant purchasing of materials or manage numbers of subcontractors, you'll want to look for vendors who can also supply additional modules in these areas:

  • Requisitions
  • Purchase orders
  • Inventory
  • Subcontractor management
  • Subcontractor payables

The job cost accounting/ERP system is in many ways the heart of your business management toolset. This is one area where it may pay to bring in a consultant to help you understand the choices available, identify business processes that could be enhanced by the right JCA/ERP module, and also identify processes that might need re-engineering to use JCA/ERP tools effectively. The consultant can help you firm up a requirements list, scan and select a short list of vendors to investigate, and help you through selection, implementation and training.

Your consultant can brief you on many of the most commonly available modules or functions that can be found in leading job cost accounting ERP packages.

*** Go to the next article: Construction Job Cost Accounting Software Buyer's Guide: Evaluation

 
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