Progressive employment-focused companies can succeed by building their ability to quantify every cost attributable to delivering an outcome for a client. Managing project costs takes time, especially when you don’t have a real-time view of budget versus actuals or when you can’t see work progress by invoices. It has an impact on project progress and financial performance. For many organizations, one of the biggest critical success factors for better task and project accounting came down to the software they were using.
Today, many employment-based companies are moving to cloud-based ERP, which helps them control project costs and gain more accurate data and better insights.
Wiise, award-winning ERP for Australian businesses, asked their clients what were the critical factors when choosing the right finance solution to manage their business accounting and how these factors attributed a large part of their success.
1. A trust system
For many businesses, there are separate systems for managing invoicing and purchase orders as well as payroll and inventory management. These platforms are disconnected and data is not consolidated between systems. This can rely on multiple people entering data into different systems and delaying reporting. Many companies find this process time-consuming, unreliable, and unproductive.
A key factor when considering the right platform was finding a solution that could manage the business in one place. With cloud ERP, your purchasing, accounts payable and accounts receivable all operate from one system. You don’t need to have a separate accounting system and spreadsheets – it’s all in one place. Managing all of these business functions in a modern ERP solution means increased data accuracy, creating insights that lead to better decision-making.
2. Project accounting control
Traditional accounting software does not provide a detailed financial breakdown between projects. That’s why many companies today are looking for a solution that allows them to drill down into data and see how their projects are tracking based on amount billed or percentage of work completed.
But with modern cloud ERP software like Wiise, you get up-to-date reports including line-by-line details of each project and labor cost down to the smallest detail, providing an accurate view of budgets versus actuals as well as automated WIP calculations. It also allows you to see all your projects against budgets and actuals and explore the remaining tasks required to advance the financial aspect of your work.
You can instantly see if there is overspending or underspending, allowing for much faster and better decision-making while avoiding unpleasant surprises.
Another problem with legacy systems is that WIPs often take a long time to update, which impacts visibility into project progress. For example, finance managers may have to wait for various Excel spreadsheets to be updated before they can see how things are going based on budgets versus actuals.
By using a cloud-based solution, you get an immediate view of progress at all times. This extra clarity and confidence around the numbers makes it easier for vendors and vendors to communicate.
3. Perfectly integrated systems
Trying to connect a legacy ERP system to a modern project management platform is often a nightmare. It just won’t work at all, or at best it’s limited and clunky and probably requires a lot of manual work to get things from system to system. You may even have had to pay someone to develop middleware for you. Maintaining these integrations can be costly and must be customized.
Another factor to consider when considering a new solution is flexibility. How flexible is the platform? Does it allow you to easily connect to other tools and systems? Our customers have flagged it as a review. A modern cloud solution comes with integrations from the start. This allows you to connect other software and systems, including payroll, so that data is transferred and shared seamlessly.
Payroll is one of the most critical things in project accounting because it’s often the biggest chunk of cost. It is essential to be able to accurately map the hours of a project. By managing job costs in your ERP system, you can fully integrate employee timesheets with payroll. Instead of multiple people entering multiple systems, with the resulting higher human error, there is less manual administration and greater accuracy. Wiise Payroll is ATO compliant and allows businesses across Australia to keep up with changes to government regulations, including the most recent superannuation and SG rate updates.
Security is another important consideration for customers looking to find the right job accounting software. Many companies are looking for a system with the right data protection and security protocols, which is especially important in the age of cybersecurity risks.
Cloud providers manage data security and privacy compliance. This is especially important for projects with global vendors, where complex international data regulations apply. Security and other upgrades are done automatically as part of the solution, so it’s scalable—always with the latest protection. With the cloud, there’s also no hassle of having to maintain maintenance for legacy hardware and servers or paying for annual licenses you no longer need: you can just pay for what you actually use, which gives a lot more flexibility to scale a growing business or scale after the completion of a large project.
If you want to learn more about how Wiise ERP can help you with project costing, check out Wiise’s website or watch their webinar on detailed project costing in Wiise.
Ready to know more? Book a 15 minute demo call with one of their friendly team members.