Residential construction companies and home builders depend upon having accurate information on current material pricing and billing schedules, convenient access to sub-contractor agreements, and detailed job site reports to optimize their cash flow and manage retainage schedules effectively, as well as to deter possible complications on the project by analyzing costs throughout the length of job.
Consequently, the solutions provided with homebuilding accounting software are rapidly becoming an accepted means of streamlining these tasks. However, before you jump in and purchase just any ERP software, there are a few things you, as a residential contractor should know about homebuilding accounting software to ensure that you get the most for your money.
The Nature of ERP (Enterprise Resource Planning)
Originally developed as a manufacturing tool for controlling inventory, procurement, and distribution processes with superior efficiency results, ERP software programs have been adapted for the benefit of additional industries, including construction.
Essentially creating a homebuilding accounting software program that not only incorporates the material purchases, labor expenditures, and retainage schedules for each specific project, but also provides detailed budgeted, verses actual costs comparisons, real time updates, while instantly directing accounts receivable information to the appropriate personnel for approval.
What It Means for Your Company
What these software solutions mean for your company is what makes it such a value added product. The advantages produced include, in addition to less harassed, over-worked project managers and office staff, more accurate materials and labor cost controls, simplified change of work orders, easier marketing techniques that allow your customer to design their dream home and you to build it accordingly without miscommunication, and streamlined billing procedures with paperless transactions, trade portals, and immediate assignations.
Knowing what to look for before buying your new ERP, or homebuilding accounting software will give you a definitive advantage in finding the right software solutions for your business.
- Denver homebuilders report high demand for skilled workers (denverpost.com)
- 10 Questions to Ask Before Considering ERP (sbsgroupusa.wordpress.com)
- Are Lumber Futures Already Pointing To A Housing Starts Rebound? (businessinsider.com)
- Midwest sees strong homebuilder confidence (suntimes.com)