From day one of planning through the completed project, construction jobs require coordination across various departments in the field and office. Software exists for nearly every business process along a project’s timeline, from accounting to scheduling to project management. However, relying on an array of disconnected programs can lead to limited data visibility, reduced accuracy, and inefficient workflows—ultimately impacting the quality of your projects.

Two areas in which integration is especially useful are your project management system and accounting processes. Connecting these two critical functions allows data to flow cohesively between systems, eliminating duplicate data entry, reducing the risk of error, and providing real-time insights into job costs. Connecting your accounting and project management software can be accomplished either by integrating two compatible programs or implementing a full Enterprise Resource Planning (ERP) system that centralizes business processes into a single unified system. Let’s go over what each of these options looks like.

PM-Accounting Software Integration

One option is to connect your project management software with your accounting software. Not all programs are compatible, so you’ll need to assess the ability of your programs to integrate. Certain construction platforms like Procore, Buildertrend, and Sage Construction Management offer integration with various accounting systems, such as QuickBooks, Sage, and QuickBooks Online.

ERP Systems

Another option for integration is to implement a full ERP system. Enterprise Resource Planning (ERP) systems integrate core business processes, including accounting, project management, HR, and procurement, into a single software system. ERPs for the construction industry are designed to meet the unique needs and challenges of the construction industry.

ERP systems typically include the following business processes (not an exhaustive list):

• Project management: project planning, scheduling, resource allocation, progress tracking, job costing.
• Finance and accounting: budgeting, invoicing, financial reporting, cash flow management, tax compliance, expense tracking.
• Human Resources: payroll, training, compliance, time tracking, certification tracking.
• Supply Chain Management: material and inventory tracking, procurement, supplier management.
• Customer Relationship Management (CRM): customer communications and data management.

Centralizing all business processes into a single ERP system improves visibility across departments, allows for better insights, and creates more cohesive workflows.

Which option is right for you?

The answer to this question depends largely on the scale of your operations as well as the size and strength of your internal accounting department. Not only are ERP systems expensive, but they are also complex to manage. Some questions to ask yourself are whether you have enough specialized staff to support this kind of software and whether you can afford the costs associated with adopting an ERP system. Companies with straightforward projects and small accounting teams can typically operate effectively using simpler systems. However, as your business grows and projects become more complex, you should consider moving to an ERP framework to better manage expanding operations.

Speak With Your RBT Accountant for Additional Guidance

RBT CPAs’ construction accounting team is well-versed in project management and accounting software integration. We’ll help you assess your business’s needs and advise you on the integration option that would work best for you. And as always, our team is here to support all of your business’s accounting, tax, audit, and advisory needs. Give us a call today and find out how we can be Remarkably Better Together.