Managing the accounting needs of commercial construction companies is a demanding process. Costs and figures constantly fluctuate, and bookkeeping requires keen attention to detail and the flexibility to manage a budget on the fly.
One way a contractor can have more control over their company’s spending is by leveraging technology. Using cloud-based accounting software for a construction company offers a world of possibilities for increasing company-wide efficiency and accurate accounting.
The Importance of Accounting Software For Construction Companies
For commercial construction companies, accounting software represents a robust and indispensable resource for managing the business’s finances.
Construction jobs require a variety of materials, equipment and machinery, labor and specialty personnel, and other building supplies to keep moving toward completion. And frequently, employees are working on more than one project, performing multiple different jobs.
A versatile and powerful accounting software solution helps to streamline processes effectively and create a more straightforward system of tracking costs.
What is Cloud Technology?
Cloud technology refers to sending and receiving information through the internet instead of storing and retrieving the same information from a computer, a physical database, or a portable hard drive.
Cloud technology represents increased connectivity and accessibility through a wide range of wireless devices. Business boundaries are redefined by storing critical data and information on a centralized database — which can be assessed from anywhere, anytime.
The Benefits of Cloud-Based Accounting Software
Corporate entities have taken advantage of the Cloud’s usefulness and functionality in recent years. For example, corporate data stored on the Cloud has increased from 30% in 2015 to 60% in 2022. Plus, nearly 95% of enterprises or businesses currently use cloud technology.
Cloud-based accounting software and vital company data can easily be accessed by authorized users as long as they have a device with internet access. With a phone, laptop, or other mobile device, users can log on to the Cloud and interact with the software and accounting system just like they would on a computer in an office.
Equally, they can look up past or present job stats, prices, or other needed information. This accessibility means accounting and data management can occur anywhere with internet access.
Data collected through the Cloud is also more likely to be used for managing the progress of the business since it can be captured anywhere: on job sites, in lumberyards, at equipment warehouses, etc. The data is always collected in real-time so instead of waiting for paper reports to return to the office, the info is steadily streaming into a centralized database, allowing contractors and project managers to be fully informed at all times.
Retrieving or uploading data can be much faster when using cloud services. Locating paperwork or waiting for information to be emailed is a thing of the past. Users skip any middleman and immediately get the information or assistance they need by going to the Cloud.
Equally, running software programs or managing data from the Cloud doesn’t require as much processing power or memory from your computer or devices. The Cloud will handle the infrastructure concerns, so your devices act as virtual, all-access windows into cloud storage centers.
Using cloud-based software tools is a surefire method for increasing efficiency and productivity.
Many accounting software modules can effectively automate accounting duties. Compiling and computing data, managing payments and inventories, and creating reports to examine the company more closely can all be accomplished with a few keystrokes. Once employees can delegate more responsibilities to the software, they will have more time to focus on other administrative duties.
With cloud-based accounting, errors are widely reduced. Using software to make all the calculations means nobody forgets to move a decimal point or carry one.
Mistakes happen, but a majority of miscalculations can be avoided, and the integrity and reliability of the data can be improved.
Plus, cloud-based technology is less likely to experience problems with internal system malfunctions, as one may find in a hardware-based system. The software should perform as intended providing the internet connection is secure.
Cloud technology offers greater security and protection because multiple levels of encryption and access confirmation ensure that only authorized users can access sensitive info. They also use data backups to ensure no information is lost or corrupted.
Programs and services should be able to scale up to meet the additional demands of a growing business. With cloud-based technology, scalability is no longer an issue. Software programs run through the Cloud offer users robust processing power and nearly infinite room for data collection and management. As the company grows physically and logistically, the Cloud stays up to pace.
Backup and Recovery
Cloud-based systems constantly perform backup services and offer users almost complete recovery of any stored information or software in the case of a catastrophic technical failure or natural disaster.
No Geological Limitations
With cloud-based technology, many users will find that their work habits may begin to transform. Since data and software are available with SaaS connectivity, users can travel all over and still have access to their project information.
Contractors will especially appreciate the mobile abilities of cloud technology when they travel to potential job sites to assess conditions and begin producing estimates on the spot.
Reduced Paper Consumption
Using cloud-based accounting software, paperwork can become a thing of the past. Connectivity and data available on computers or mobile devices mean most information will be created, shared, and stored as digital files.
Even past paperwork can be efficiently scanned, uploaded, and added to the overall digital files. Using the FOUNDATION® Document Imaging Module makes scanning and uploading documents manageable.
Furthermore, going paperless represents a significant step toward reducing the company’s carbon footprint and reliance on paper products. That’s a win for both the company’s financials and the environment.
Make the Jump
Wherever your business falls, committing to a cloud-based accounting software solution can streamline your construction job costing system to improve both profits and success.
At Foundation Software, we have worked closely with industry professionals to create a dynamic and fully-integrated accounting system that meets your business’s needs. Contact us today to learn more about how our software can enhance your construction company’s workflow.