Our Top 5 Blog Articles Published on ERPSoftwareBlogBlog #4
Blog Article #4: Project Accounting: Why is it Important for Professional Service Firms? (read the original blog article published on October 27th, 2010)
This was one of our very first blog articles written by JOVACO and it spoke about what are some of the key differentiators when a firm uses a project accounting method within their financial management system.
Since we have written this article a mere three years ago, a trend that we are seeing is that “big data” and the amount of information that we are capturing is becoming increasingly important. I feel that by having a project accounting module in place, you will be coding your project details from the start and then it is much easier to retrieve and analyze your information later on.
What we are also starting to see are more requests for project accounting solutions outside the professional services industry. We are starting to see more and more firms who want to to have a more activity-centric view within their organization which demonstrates that there is more and more importance placed on the analysis of your information.
I think a key line that was in the original blog that is still very much still important today is the fact that this type of system will “empower everyone in your organization to follow their projects more closely”. This concept has been pushed even further since this original blog post as there are now integrations that can connect your project information to a CRM solution. This integration will allow you to contextualize and filter your project details that are most important to you. With this type of connection between these two applications, this transfer of information can also be done more efficiently with all the other members of your organization since resources may access this information themselves and they will be assured that information they are looking at is their data in real-time.
I think another major evolution in project accounting has been the level of integration that has been made available between project management and project accounting solutions. The goal of this is to reduce the number of errors when entering the data and to be sure that everyone is reviewing the same information from the same database. We are seeing more and more requests for integrations not only between the financial system and your resources timesheets, but also integrations with project management tools so that as soon as the project has being created, the same standards and information can be tracked from the proposal phase to calculating your profits for a single or group of projects.
Check out one of our recent infographics “Why Professional Service Firms Should Use an ERP System to manage their projects” some other reasons why your organization should adopt a project accounting practice.