Accurate accounting plays a vital role in running your organization along with the overall outcome of your development projects. This is because it aids in the tracking of income and expenses, as well as providing quantitative financial data to investors, managers, and other decision-makers to aid in the making of business decisions. A single accounting or budget error in the commercial real estate market could result in a large loss of productivity and bottom-line earnings for your project.
Many developers underestimate accounting software. They use Excel or Quickbooks because they’ve “always done it that way.” And they don’t realize how much time, money, and frustration these outdated systems are costing their business. It’s imperative that your accounting software works in conjunction with your development project to aid in better project management instead of slowing you down.
When you use Excel and don’t use project management software that is tied to your accounting software, chances are high that somewhere along the way you could input incorrect or outdated data into your spreadsheets. This exposes your project to errors.
How Real Estate Development Accounting Software Helps
The most effective real estate development software integrates with your accounting which ensures even the most complex development projects are working off accurate cost data directly from the general ledger. That means error-free data, ensuring that your accounting and development teams are on the same page.
This also eliminates the need for multiple entries of the data and your accounting software becomes the single source of truth for the entire organization. This ensures that projects are delivered seamlessly on time and on budget.
Without a unified accounting system, another challenge for developers becomes collaboration. It’s difficult to keep track of who’s working on what. Collaboration among teams is inefficient and spread across email threads and these same potentially inaccurate spreadsheets. As a result, deadlines are missed, and clients become unsatisfied.
If a project team member approves an invoice, that invoice will be reflected in the general ledger for any team member with the proper security to view. Any payment details associated with that invoice will automatically update the project and cost to complete information.
This unified approach to project delivery feeds highly collaborative accounting and development teams!
Consider the following impacts of Real Estate Development Accounting software:
- Accurate Budget and Project Management
- Better team collaboration
- Easier file access and sharing
- Effective risk mitigation
- Budget management
Budgetrac for Developers
Budgetrac equips developers with the tools to run a tighter, more efficient machine. You’ll experience better outcomes by eliminating budgeting errors that add up to major earnings losses for your organization.
With a smart developer-focused accounting system, like Budgetrac Software you can:
- Manage multiple development projects in a single, intuitive system.
- View and share reports in real-time rather than waiting to close the accounting month.
- Handle vendors by tracking contracts, commitments, draw requests, payments, change orders, and retention. Prepare loan draw requests, track multiple loans, record cash receipts, and create automatic general ledger entries.
- Get a complete overview of your project on a single report.