As a construction company owner, leader, CFO or project manager, you know that accurate, timely financial information is crucial for making informed decisions and keeping your projects on track. But what happens when your accounting software can’t keep up with your growing business?
A new eBook from NexTec Group and Construction Dive offers insights into the unique financial management needs of construction companies, and how upgrading to a construction-specific Enterprise Resource Planning (ERP) system can unlock new efficiencies and drive growth.
This informative eBook covers:
- Signs that your company has outgrown its current accounting software
- The limitations of traditional accounting systems for construction businesses
- Benefits of implementing a construction-specific ERP system
- Key features to look for when choosing an ERP solution
- Tips for successfully transitioning to a new system
Accounting Software Growing Pains
Many construction companies start with off-the-shelf accounting software, which works well initially. However, generic ERP systems often lack critical features for the industry, such as support for work in progress (WIP) reporting, retainage, certified payroll, and AIA documentation. As construction businesses scale and grow – adding more projects, employees, and subcontractors – the limitations of basic systems become all too apparent.
Firms often experience challenging in managing multiple projects simultaneously, coordinating larger workforces, and dealing with more complex operations. When your accounting software can’t provide quick, accurate answers about project profitability or real-time financial status, it’s a clear sign that you’ve outgrown your current solution.
The Risks of Outdated Systems
Continuing to rely on outdated or inadequate accounting software can have serious consequences for construction businesses. The eBook outlines several red flags, including:
- Delayed financial reporting and decision-making
- Inconsistent data across departments
- Inefficient manual processes and data entry
- Difficulty accessing up-to-date project information
- Frustrated employees struggling with system limitations
The Construction ERP Solution
The eBook presents construction-specific ERP systems as the logical next step for growing construction, contracting and consulting companies. These comprehensive platforms combine accounting, project management, subcontractor management, and other critical functions into a single, integrated solution.
Key benefits of construction ERPs highlighted in the eBook include:
- Streamlined Project Management: Manage all aspects of your projects – from tasks and change orders to invoices and profitability – in one centralized system.
- Improved Cost Control: Gain real-time visibility into project revenues, expenses, and profitability, allowing for better budget management and decision-making.
- Data-Driven Insights: Access built-in dashboards and financial reports to make more informed business decisions quickly and confidently.
- Enhanced Subcontractor Management: Easily track and manage plans, contracts, compliance documents, and payments for all your subcontractors.
Jeff Hamilton, president of Roberts Glass & Service, shares the real-world impact of converting to a modern, construction-specific ERP:
“We’re now able to see where we are cost-wise with our existing construction projects. We’re able to look at the profitability of each project, look at the customer base, and understand how we are most successful.”
Jeff Hamilton, president, Roberts Glass & Service
Choosing the Right ERP
Selecting and implementing an ERP system is a significant decision for any construction company. The eBook offers valuable advice for navigating this process, including:
- Documenting your company’s specific needs and pain points
- Prioritizing key features and requirements
- Involving your team in the selection and implementation process
- Testing potential systems with real-world scenarios
ERP Implementation Best Practices
Successfully transitioning to a new construction ERP system requires careful planning and execution. The eBook provides tips for a smooth and successful implementation, including:
- Clear communication with staff about the changes
- Creating a detailed plan for data migration
- Developing training resources for employees
- Identifying internal subject-matter experts to support the transition
The Cost of Inaction
While implementing a new ERP system requires investment, the cost of maintaining outdated systems is far higher. In today’s competitive construction landscape, companies need the efficiency, accuracy, and real-time insights that modern ERPs provide to stay ahead, grow, and thrive.
Summing Up
For construction companies experiencing growing pains with their current accounting software, this eBook offers insights into how a construction-specific ERP can transform their operations. By providing real-time project data, streamlining workflows, and enabling better decision-making, these systems can help construction firms build a stronger foundation for future growth and success.
Get Your Copy of the eBook
Ready to learn more about how a construction ERP can benefit your business? Download the full eBook to dive deeper into how you can position your construction company for long-term success. Contact us if you have questions or would like to schedule a personalized construction ERP demo.
About NexTec Group
NexTec Group is one of North America’s largest and most experienced technology consulting firms, specializing in industry-specific solutions for mid-sized organizations. For thirty years, NexTec has been a trusted partner to businesses, delivering, implementing, and supporting the core Enterprise Resource Planning (ERP) and Business Intelligence (BI) solutions they need to scale and grow.
With seasoned consultants from coast to coast, and a premium portfolio of innovative business management solutions including Acumatica and Sage X3, we help you get the most out of your technology investments. Our over 90% customer retention rate is a testament to the lasting, impactful relationships we build with our clients.
To learn more, visit www.nextecgroup.com or follow us on LinkedIn.
