Top 5 Project Accounting Features for Successful Project Management
Project Management Institute latest global project management survey, Pulse of the Profession 2020, indicates that 11.4% of investment on average is wasted due to poor project performance. Moreover, organizations that don’t prioritize project management as part of their strategy for driving change report on average 67% more project failure.
So, what does this mean? Between COVID-19 and technologies evolving faster than ever, most organizations face a ton of pressure to keep up with all this disruption. According to the same survey, the top 3 success factors were organizational agility, the right technologies, and relevant skills. Along with the right governance and skilled employees, project-based firms must ensure they have flexible tools in place to support their operations.
But how do you know which platform is right to manage your projects successfully? Here are the top 5 features you need:
Web-based time and expense entry
With so many employees working from home, a web-based timesheet and expense report are now more important than ever. Giving employees the means to enter their hours and expenses from anywhere is essential to ensure that invoices go out on time.
Flexible invoicing capabilities
A flexible invoicing module greatly reduces the number of manual entries and the risk errors. Look for a module that lets you combine different invoicing methods (fixed fee, time and materials, actuals to date) depending on project particulars and client requirements.
Fully integrated system
Integrations are now crucial to obtain a 360° view of your projects and operations. This means you can monitor budgets and project progress in real time and manage change requests more efficiently. Integrating sales to operations also ensures better visibility on your pipeline and lets you plan better for future workloads and commitments.
Real-time business intelligence and project reports
Reporting and business intelligence tools are now highly sophisticated. Business intelligence applications like Microsoft Power BI give you real-time visibility on your data and all the tools you need to analyze and visualize it. Information can also be shared easily, ensuring quick business decisions and rigorous project follow-ups.
Complete resource management
Look for more than just resource planning. By centralizing all information related to your personnel, you can manage their entire career path more easily, from training to certifications and competencies. This will let you leverage the full capacity of your teams and choose the right people for the right projects.
Look for these features to ensure your project accounting solution meets the specific needs of professional services firms and project-based firms. A full integration between finances, sales and projects will provide your organization with the visibility needed to deliver projects on time and continuously improve its level of service. Ensuring client satisfaction and loyalty is the key to success for professional services firms.
Note from the author
This blog is based on an article first published in 2011, Project Accounting: The 5 Features You Need to Successfully Manage Your Projects. While the fundamentals have not changed, reporting, analytical tools and integrations are now much more sophisticated. This means real-time project data for greater business insights and increased project control. A complete project management solution such as JOVACO Project fully integrated to Microsoft Dynamics 365 and Microsoft Dynamics GP provides all the tools you need to manage and track your projects in real time.