Project accounting requires segmented management of the expenses, income and salaries associated with your projects so that you can analyze each project's profitability. Actively following-up on the progress of your projects is essential for this type of accounting.
An accounting management solution like Avantage can facilitate the follow-up process in order to provide you with a detailed view of your projects, which will allow you to make the most profitable decisions for your business.
Here are four reasons to choose Avantage to manage your project accounting!
When all your projects are mixed together in a single account, it is hard to know which project may be losing money and which one has the potential to earn more. By analyzing the profitability of each project individually, you will be able to choose the best contracts for your business.
Avantage allows you to categorize your accounting and have a clear and accurate picture of each project or department.
With Avantage, you can follow the budget of each project every day in order to follow up and prevent potential cost overruns. It is essential to perform this follow-up regularly in order to avoid unpleasant surprises at the end of each project.
By following your budgets, you can also know at all times if a specific project is on track to being profitable.
If you have to make estimates for your projects, how do you check their accuracy? Of course minimal variations are normal in any project, but it is important to validate your estimation method by comparing your estimates to your results at the end of a project. This verification will allow you to make adjustments for your next projects, thereby improving your profitability at the same time.
Project accounting also allows you to better forecast and better plan fund entries in order to maintain a balance in your finances.
For long-term projects, progress billing is a good practice to adopt. Billing your customer according to the work done allows you to make sure that your fund entries are more stable and easy to predict, and reflect the progress of the project concerned. That may sound hard to manage, but don’t worry, Avantage makes it easier for you.