Sage Intacct releases a free update once every quarter that improves, updates, and adds to the financial management platform in various ways – always helpful, often significant, and usually based on user feedback. The second update of 2022, which will automatically install of user’s accounts on May 13, contains a lot to be excited about…especially for users in the construction and real estate (CRE) industry.
Over the years, Sage Intacct has become one of the more capable, relevant, and popular financial management solutions in the CRE industry. And with the latest release, it removes a major roadblock for contractors of all sizes and paves the way for accounting that’s effortless (and accurate) like never before. Current users should be excited about the new functionality coming their way, and potential users should be intrigued about what’s now possible. This blog explains why.
New Functionality for Project Contracts
For companies buying or building properties, it’s an ongoing challenge to translate the details of project contracts into accurate invoices. At best, it takes extensive time and focus to bill for things exactly as the contract specifies, and at worst, it leads to frequent billing mistakes (followed by constrained cash flow) when details get lost in translation.
In Sage Intacct 2022 Release 2, the bar has been raised for construction billing. Users can now depend on the system to capture important details from contract lines and then automatically move those details into the project billing module. Simply stated, it links together the contract and the bill in ways that construction accountants have always wished for. Sage Intacct now has the power to:
- Map project tasks to lines in a project contract. Billed transactions can now be automatically attributed to the corresponding project contract line, which makes it easy to associate those transactions with the assigned rate table to get markups and bill rates correct.
- Connect a project contract line with a project change and its price effective date. Sage Intacct will only bill for the revised pricing once the change becomes effective.
- Generate project invoices that automatically incorporate relevant details from the project contract lines.
These new features make it possible to mix and match billing types (eg. fixed costs versus time and materials) on the same project. They also allow for rate tables and markups to be applied to time-sheet entries, AP entries, employee expenses and more. The biggest news, however, is that with the new project contract capabilities in Sage Intacct, users can now automatically generate invoices with a format similar to the American Institute of Architects (AIA) invoice format.
Everyone in CRE accounting will be familiar with the AIA invoice format. It’s the most commonly used format, and one that requires careful and diligent work to complete correctly. Errors on AIA invoices have been and continue to be the source of countless billing delays and disputes in construction. Sage Intacct now solves that problem by automatically creating AIA invoices based on exactly what the contract says.
What The Latest Update Means for CRE
There are two important takeaways from the latest release.
The first is that Sage Intacct is not just an adequate accounting tool for construction and real estate but a tool that’s designed and optimized for this industry in particular. The changes to project contracts come in addition to expanded, industry-specific features for everything from AR/AP to inventory control to tax management. Construction and real estate companies in need of an accounting solution that meets their unique needs while elevating everything they currently do have an accessible option in Sage Intacct.
Which relates to the second thing the latest updates signals: the ongoing and increasing commitment of Sage Intacct to companies across construction and real estate. That’s clear from the new ability to generate AIA invoices. Rather than adding flashy bells and whistles, Sage Intacct is striving to solve the real struggles facing accountants in this industry and build tools that improve and expedite their work. And what could be more helpful than a way to streamline the AIA format? Expect all future releases to have a similar focus on meaningful solutions.
For anyone with a less-than-perfect solution for construction and real estate accounting, explore more of what Sage Intacct can do. Contact RSM for a demo.