Project accounting management is an essential component of any business, especially those that provide professional services. If you’re looking to stand out from the crowd, investing time into fine-tuning your project accounting practices will pay dividends quickly. We’ve gathered our five best tips to get you started.
40% of project-based businesses do not use project management software and 52% of projects experience scope creep.
Let us look closer at 5 project accounting best practices and how, with the right project accounting tools, you can ensure profitability for your projects, regardless of size or complexity.
Download a PDF of the best practices here.
This is a frequent problem in project accounting and can be mitigated by having a clear discovery and pre-project engagement that covers understanding the client’s vision.
Reducing project risk is essential to a successful project plan, as unforeseen and overlooked details can easily derail a project. Contingencies should be built into the schedule to account for any unexpected events impacting the project.
Before cloud project accounting software became available, the typical budgeting process relied on guesstimating costs from labor to materials.
Knowing how much time was allocated to a project is vital in determining how profitable the project was.
Overlooked or rushed to push to get the project across the finish line.
Effective project accounting management involves proper resource allocation and management, regular review of financial reports, task, and time management, proper invoicing and billing management, and consistent project monitoring and reporting. Following the best practices of project accounting will enable organizations to remain profitable and deliver successful projects that meet and exceed client expectations.
Employing technology that aids project accounting workflows is essential in ensuring that organizations keep up with the best practices and deliver efficient project accounting management practices.
Learn more about Project Accounting at OPUS Global Data Solutions.
Since our inception in 1986, OPUS has assisted organizations in selecting, deploying, and integrating technology solutions that enable ERP software. We are technology enablers. The goal of our work, our OPUS, is to enable our customers to be highly competitive, profitable and leaders among their peers.