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 that we’ve got that out of the way, let’s examine the benefits of using Sage Intacct Project Accounting Software to manage it all.
See also: Introducing Sage Intacct Budgeting & Planning
1. Take Command and Control of the Details
Armed with that knowledge, you can monitor and, if necessary, reassess and adjust project resources to not only ensure it meets the overall financial goals of your company, but that the project stays on-time and on-budget. Sage Intacct Project Accounting is also built to keep you in compliance because you can configure all workflows, from entering time to approving payments.
2. Better Insight and Real-Time Decision-Making
- Did you underestimate your expenses?
- Is a specific task or phase of a project starting to erode your profits?
- Do you need to adjust assumptions and quotes for similar projects in the future?
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 you stay informed to make critical real-time decisions before a project is complete and it’s potentially too late to do anything about it.
3. Streamline Billing and Expenses with Automation
In addition, billing automation helps you generate project invoices in the right format, using the right terms and the right amounts. Sage Intacct Project Accounting software also keeps revenue recognition separate from billing and automates the calculations and postings, based on milestones, schedules, or percentage completion.
4. Support Future Projects and Company Growth
Not only do you have better tools for real-time management of budgets, resources, and progress during an active project, you also get detailed financial insight and performance metrics you need to look back at completed projects to determine what type of work and/or industries your professional services firm should focus on for future engagements and company growth.
Related: What's New in Sage Intacct 2018