| Construction Accounting Software that does not | | | | reasons. Today's market economy demands no |
| include the capability of capturing payroll figures | | | | less, since everything is moving at such high |
| and data in real time might be comparable to | | | | speed and projects are always under great |
| using a cordless drill without a battery. Basically, it | | | | potential for risks, if the data is anything less than |
| just does not work very well! | | | | spot-on. |
| Indeed, since payroll is an inherent piece of any | | | | While it is necessary to maintain accurate |
| construction project accounting, reflecting | | | | construction project costs, real time data can also |
| construction manpower labor costs, it is | | | | become an administrative nightmare, as it relates |
| paramount that it be as up to date as possible, to | | | | to manpower allocations and the like. |
| ensure charges to projects are properly directed, | | | | For example, we know that very few |
| and to help project managers and company | | | | construction projects are actually executed |
| financial folks keep abreast of day to day project | | | | exactly as they are initially planned and estimated, |
| cost impact from payroll figures. | | | | due to last minute on-the-job changes in |
| Additionally, depending on specific company | | | | equipment or manpower availability or other |
| structures, some construction companies might | | | | similar unforeseen glitches common to such |
| have graduated payroll impacts based on | | | | projects. |
| employee skill levels and actual pay. Thus, up to | | | | If a field supervisor needs to get a particular piece |
| date, accurate payroll data keeps the construction | | | | of a construction project completed at a particular |
| project actual costs in view at all times, without | | | | time, and the only personnel available are not the |
| the need to extrapolate, interpolate, or otherwise | | | | ones initially planned (and monetarily accounted for |
| estimate up to date figures. | | | | in the project budget), actual costs for that piece |
| Real time data is always best, if available, since it | | | | of the project might reflect over or under |
| leaves little question or confusion about the overall | | | | charges, depending which personnel were utilized, |
| project accounting from day to day or week to | | | | with real time payroll data collection. |
| week. If the data is days, or even hours old, it | | | | It goes without saying that some measure of |
| can lead to ineffective monitoring and poor | | | | flexibility must be built into any effective |
| accounting controls of the overall project | | | | Construction Accounting Software package for |
| package; which then can lead to unacceptable | | | | reasons like those mentioned above. Field |
| outcomes with regard to profit and loss. | | | | supervisors need to be able to deviate somewhat |
| Many of today's Construction Accounting | | | | from the initial plans, so they can continue to |
| Software packages typically offer as much real | | | | move forward toward project completion on time |
| time data as is practically available, for good | | | | and, hopefully, within budget! |