RSMUS.comFor many of today’s construction companies, from small contractors to major builders, job costing is not just a painful process but also a major drain on profitability.
Since this process has traditionally been slow, manual and driven by spreadsheets, it can be difficult to track expenses in real time. It may take days, weeks or even months before construction managers know what was actually spent compared with what was budgeted. By that point, it can be too late to make changes, resulting in profit margins that are less than expected… or wiped out entirely.
If managers had continuous visibility into actual costs, they could identify overruns immediately, make adjustments and protect profits regardless of circumstances. Much depends on getting job costing right. Fortunately, that task has never been easier with Sage Intacct CRE.
Common problems with construction job costing
Construction budgets are built on assumptions and estimates. Once a project begins, material costs, labor requirements, client expectations and countless other variables can change. Tracking actual costs down to the penny is essential, but even for small projects or large teams, it can be challenging.
Someone must collect receipts and invoices from everyone with purchasing authority, consolidate those costs into a central spreadsheet and transfer the data into the accounting system. Errors and omissions are common, and actual costs can be slow to emerge. The process often creates frustration as teams chase down information and make decisions based on estimates rather than real data.
Poor job costing allows time and profits to slip away. For many construction companies, just a few unprofitable projects can put the business at risk. Sage Intacct CRE addresses these challenges.
How Sage Intacct CRE works
Sage Intacct CRE provides an integrated suite of accounting tools designed for construction and real estate organizations. Its job costing functionality tracks every cost—labor, materials, equipment and vendor invoices—in real time and automatically syncs that data with the general ledger.
The platform reduces administrative effort on the front end and enables decision-makers to understand how profitability evolves throughout a project’s life cycle. These insights support better budgeting and more informed financial management.
Unique benefits of Sage Intacct CRE
Sage Intacct CRE offers capabilities that distinguish it from other construction accounting solutions, making job costing more manageable and informative:
- Dimensional accounting: Uses tags instead of codes for projects, costs, departments, vendors and locations, resulting in cleaner data and faster, more flexible reporting.
- Commitments and change orders: Tracks committed and posted costs and manages change orders within a single system to support budget control and audit trails.
- Payroll and AP integration: Automatically incorporates labor costs and subcontractor invoices into job costing, reducing manual reclassification and saving time.
- Forecasting visibility: Improves forecasting accuracy, revenue recognition and cash-flow planning, helping leaders make informed strategic decisions.
How to get started with Sage Intacct CRE
The developers behind Sage Intacct worked closely with contractors and construction companies to understand the real-world challenges of job costing. Those insights informed the design of Sage Intacct CRE.
Uncertainty and inefficiency do not have to undermine profitability. With a purpose-built solution like Sage Intacct, construction organizations can gain better control over financial outcomes. Learn more by requesting a demo or speaking with the construction accounting and technology team at RSM.
Contact us to make job costing a source of strength.
Keith Rodriguez
Keith is a Sage Intacct implementation consultant who specializes in the construction and real estate industry. He has led engagements from client discovery and system design through handoff to the client’s new ERP system. With eight years of experience in construction project management and real estate property management, Keith is able to engage with CRE clients at their level through a deep understanding of the systems and processes in these industries.
