project accounting software

Who Needs Project Accounting Software?

Muli's Project accounting software creates financial reports to track the progress of projects during the entire project delivery cycle - from bid to final billing. It is used in a variety of industries including professional services and building & construction, where it is termed construction accounting software. Wherever people deliver products or services by implementing projects, then Muli can help.

When a project firm is making accounting software comparisons, they recognise that their unique demands will rule out general accounting solutions. One reason is that the business may have project management phases that can have a life of anything from a few days or weeks, to a number of years. Standard software will not provide the detailed costing and profit reporting required over these longer terms.

Significance of People

Projects also place significance on the people making up the project team. The software tends to record the different roles and responsibilities of the people in the project team – for example, project manager, estimator, site manager etc. This is similar to the manufacturing environment where the personnel in a cost centre are recorded against a batch of product for QA recording but in the project environment the obligations are greater.

Project accounting also differs from standard accounting in that it permits both direct and overhead costs plus revenues to be allocated to individual projects. It differs also in the importance placed upon ensuring compliance to contract terms.

Project Revenue

Revenue comes in the form of funding advanced and progress claims made, based on milestones or percentage-of-completion. These billing requirements are stipulated in the contract terms and may involve time and material, progress billing or cost-plus.

Project accounting software therefore needs to have some flexibility in customer billing to accommodate the different requirements. In addition project accounting requires transparent recognition of revenue – and this needs to occur in a timely fashion to help project managers invoice as much as they can under the terms of the contract.

Timesheets

Projects involve labour costs and it is usually necessary for employees to complete timesheets to help allocate project costs. The software should allow for employees to enter their own project time and expense records online and for their supervisors to review and approve these entries. An integration with a payroll module will eliminate errors and duplicated effort.

Managing Change

The changes of scope, revision and contract variations that occur during the term of a project should be managed by the project accounting software to ensure the company is able to prove its case if a dispute over claims went to court.

Project accounting software must finally have extensive reporting capabilities to enable management to track, report and compare projects, budgets and forecast cost to completion.

MORE INFORMATION? Select MODULES from the top menu and choose PROJECT BUDGETS & VARIATIONS to see how purpose built Project Accounting Software would work for you.

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