Technology tips and trendS
Dear Readers;
If you’re using generic, entry level accounting software, is it time for a change? This month we feature feedback on this subject from leading construction professionals, as well as a case study describing how one contractor upgraded from QuickBooks and doubled its revenues without hiring more accounting staff. Also in this issue, we offer Tech Tips to ensure that your data is secure.
See you in November!
Josh Stearns,
Vice President of Sales & Marketing
AccuBuild Construction Software
Three Flaws of Entry Level Accounting Systems
(And Why Construction Companies Need Industry Specific Software)
by Emilio F. Alvarez, CPA
For small start-up contractors, entry level accounting software programs such as QuickBooks Pro or Peachtree are useful tools. However, as work volumes build, these systems become less useful for construction accounting. By the time a contractor reaches $5M or more in annual revenues, financial reporting needs begin to outgrow the capabilities of these programs.
From a construction accounting perspective, entry level software is problematic due to three primary flaws:
- Lack of internal controls. As a CPA and auditor, I find it troublesome that entry level systems don’t leave an audit trail and that data can be changed without leaving a footprint.
- Inability to produce a WIP schedule within a fully integrated environment. To create a WIP using data from QuickBooks or Peachtree, a contractor must export data to another software program. This is a timely process that lends itself to human error.
- Inability to produce a committed cost report. I’m a big fan of using committed cost reports and feel they are among the most useful reports to proactively manage a construction company. Unfortunately, you can’t produce this type of report using an entry level program.
Read Article...
The (High) Cost of Using Inadequate Construction Accounting Software
by Danny Parrish
The decision to seek new construction accounting software, particularly for contractors moving up from QuickBooks or Peachtree, is generally driven by the complexity of operations. As your company grows, you require additional functionality with more detailed reporting, particularly in the areas of project management and job costing. This functionality and reporting is vital for analyzing data and making better decisions.
Growth also drives a greater volume of transactions through your accounting system. This can overwhelm lower end software programs, as well as the individuals trying to make a lesser system function at a level it was not designed to reach. Workarounds that add extra time and effort are usually required to perform the transactional inputs needed to get basic accounting done. Plus, any significant analysis must be done using spreadsheets.
Read Article...
Is Your Backup and Disaster Recovery Plan Proven?
by Josh Stearns
When I ask a business owner about his data backup system, the typical answer is: We do a backup every day. The problem is, simply creating a daily backup isn’t enough to protect your data in the event of a catastrophic loss. What you need is a proven backup system and a tested disaster recovery plan.
When considering your backup and disaster recovery system, and budgeting accordingly, here are some of the questions you need to ask – and answer – honestly:
- If your server or workstation crashes or if a disaster destroys your office, will your backup allow you to restore your data?
- If your office burns down, do you have a procedure in place for setting up operations at an alternate location? If yes, has this procedure been tested?
- How much money will you lose for every day of down time if you’re not prepared?
I have met many CEO’s and business owners who have backup and disaster recovery plans. But they are just that: plans. Too often, these plans haven’t been put into place; and if they have been put into place, they usually have not been tested.
Although putting your plan in writing is an important first step, a disaster recovery system is useless until it has been put into place, tested and is proven to work. And, your backup is worthless until it has been proven to restore data.
Here is one way to go about planning, implementing and testing your data backup and disaster recovery plan: Read Article...
|
