RSMUS.comAs the United States economy pours massive sums into constructing data centers, repairing and replacing infrastructure, and increasing the housing supply, demand for specialty contractors is surging. That’s great news for plumbers, electricians, HVAC technicians and countless other contractors with the specialized skills the future demands. However, rapid growth can be a double-edged sword.
With more business comes more complicated accounting requirements. The speed, scale and complexity all increase. The consequences for making mistakes do, too. This is true for everyone in the construction and real estate industries. For specialty contractors who are used to smaller and simpler operations, scaling accounting proves particularly challenging.
Especially when using legacy solutions or introductory accounting software. They’re adequate at first, but as a business grows and matures, these same tools become an obstacle—both to effective accounting and to continued growth.
Having the right accounting software couldn’t be more important for a specialty contractor on an upward trajectory. In this blog, we outline some clear signals that the current accounting software isn’t working before highlighting why Sage Intacct CRE is the better choice for specialty contractors.
Red flags that accounting isn’t working
Accounting is complex and cumbersome by nature, so it’s not always obvious when the process has problems or the software poses obstacles. Growth makes those issues much harder to ignore. It also makes changes much harder to implement. That’s why all specialty contractors need to watch for these red flags and respond before they damage the business.
- General accounting capabilities: Industry-agnostic accounting software may be adequate for a new or small specialty contractor. However, as they take on bigger projects, handle more financial data, and deal with increasingly complex workflows, that same software becomes inadequate. Contractors need software that can handle construction-centered transacting, or else accuracy, visibility and efficiency will all suffer.
- Limited job costing visibility: Job costing requirements grow with the size and volume of the jobs themselves, as does the challenge of accurately tracking costs in real-time. If this process already feels ineffective and inefficient, prepare for it to worsen without an accounting solution built specifically to optimize job costing.
- Manual process & outside systems: Tracking work in progress (WIP) using manual data entry and spreadsheets that sit outside the accounting software makes errors, omissions and delays almost inevitable. Doing more work than before only exacerbates these issues. And if they’re not addressed by upgrading the accounting software, a specialty contractor can become a victim of their own success.
- Struggles to scale: As a specialty contractor adds additional locations, hires more employees, takes on larger projects and expands service offerings, the accounting software may struggle to adapt or grow with the business. It may also be difficult to integrate with new software packages, forcing contractors to use manual processes and workarounds that further limit scale.
How Sage Intacct CRE supports your next phase of growth
The comprehensive financial management capabilities and industry-specific features built into Sage Intacct CRE make it the ideal accounting solution for specialty contractors of any size. Not only is it free of the red flags outlined above, but it can also help to facilitate and accelerate growth through smarter money management. Key features include:
- Construction reports and dashboards: With report templates and customizable dashboards designed around key construction metrics, decision-makers have effortless visibility into job data at all times.
- Dimensional chart of accounts: Replacing account codes with Dimensional “tags” makes it easier to track job costs from start to finish and perform granular analysis on job profitability.
- Automation and integration: Tracking work-in-progress data and completion percentages automatically eliminates the need for Excel and number crunching. Multiple revenue recognition methods can also be employed.
- Unlimited scalability: Additional entries can be added to Sage Intacct CRE, existing processes can be expanded or customized and a huge number of integrations with popular software are available so that the accounting solution always meets the needs of the business, today and tomorrow.
See Sage Intacct CRE in Action
The best way to understand what separates Sage Intacct CRE from so many other accounting solutions is to see it in action. The team at RSM would be happy to schedule a demo, answer any questions that come up, and explore implementation options.
Make the most of this exciting time for specialty contractors. Contact RSM.
Sydney Spevak
Sydney has worked with the RSM Sage Intacct team for more than three years with a focus on construction, platform services and financial reporting. She partners with clients to successfully implement accounting systems tailored to their business needs by collaborating to understand current processes and pain points and by developing creative solutions that exceed client expectations. Sydney is dedicated to improving client satisfaction and financial system efficiency while building solutions that help clients better manage and grow their businesses through technology.
