Projects, engagements, campaigns, jobs, however you refer to them; tracking the individual revenue, expenses, and profitability of each one is critical to the growth and success of almost any professional services company. Sage Intacct's Project Accounting Software provides undeniable benefits in tracking and managing project success at your firm.
What is Project Accounting?
In a nutshell, project accounting entails tracking of all activity and financial transactions on a project-by-project basis. That includes everything involved in a typical project such as budgets, estimates, costs, bookings, billing and everything in between. Further, some of the most important aspects of project accounting is the ability to determine, at any given time, whether a project is on-budget, profitable, and how much has been or needs to be billed.
Where “standard” accounting typically focuses at a high level on the financial performance of the company as a whole or over a certain period of time such as yearly or quarterly performance, project accounting focuses on specific and individual projects as a stand-alone microcosm of everything else that may be going on at a company level.
Now, let’s examine some of the benefits of using Sage Intacct Project Accounting Software to manage all of those metrics.
1. Take Charge of the Details
One of the most important benefits of project accounting is its ability to track budgets and revenues across every stage of an individual project. Sage Intacct provides project managers with access to everything from project hours and total expenses to incoming invoices and milestones. Additionally Sage Intacct's Dimensions feature allows users to further segment data by different categories like location, item, department and more.
➥ Read about how Legendary Entertainment leveraged these details for better reporting
Armed with that knowledge, users can monitor and, if necessary, reassess and adjust project resources to not only ensure they meet the overall financial goals of their company, but that the project stays on-time and on-budget. The ability to configure all workflows, from entering time, to approving payments, helps keep each project in compliance with company and industry standards.
2. Take the Guesswork out of Decision Making with Better Insights
- Are you still on track?
- Did you under-budget for your expenses?
- Is one task eroding your profits?
- Do you need to adjust quotes for future projects?
These are the questions that plague project managers and will inevitably pop up at every project meeting. With Sage Intacct Project Accounting, you can answer these and other critical questions about every single phase and aspect of a given project. Features like project-specific dashboards and reports, visual graphs, key performance indicators (KPIs), and detailed Gantt charts help decision makers stay informed to make critical real-time decisions before a project is complete and it’s potentially too late.
3. Automate Billing and Expense Procedures
One key to keeping project costs in check is to automate processes that are time-consuming and tedious. With Sage Intacct Project Accounting, users have the ability to automate all billable and non-billable time and expenses, from submission to approval.
In addition, billing automation helps users generate project invoices in the right format, using the right terms and the right amounts. The software also keeps revenue recognition separate from billing and automates the calculations and postings, based on milestones, schedules, or percentage completion.
4. Jump-Start Upcoming Projects and Company Growth
Armed with the tools, features, and insight provided by Sage Intacct Project Accounting, users can avoid mistakes of past projects, improve profitability of future projects, and put their company on the path to growth with greater visibility of the pipeline and better handle on cash flow.
Not only are there better tools for real-time management of budgets, resources, and progress during an active project, users also get detailed financial insight and performance metrics they need to look back at completed projects to determine what type of work and/or industries their professional services firm should focus on for future engagements and company growth.