Accounting is a complex science where small mistakes can lead to big headaches. Once a company has a functional accounting software in place, it can be easy to put off upgrading – even if the current solution is lacking in certain areas.
Growth is rewarding for any business, but it also presents new responsibilities. As your organization expands, there are new costs, liabilities, and calculations to keep track of. When things get more complicated, standard software like QuickBooks may fall short.
Though the thought of making a switch to new accounting software can be exhausting to consider, here are some signs that it may be for the best.
Payroll is Becoming Hard to Manage
Payroll is one of the most basic accounting functions that any business deals with, so it’s no wonder that most common software solutions can handle this process.
Construction companies that deal with a wide variety of laborers (contract employees, sub-contractors, etc.) may find traditional payroll solutions limiting. Factoring in things like various types of employment taxes, union wages, and different wages in different states can get very difficult without the right software.
If payroll is becoming a chore, it may be a sign that your current accounting software isn’t quite up to the task of managing payroll for your company.
Reports Don’t Provide Enough Detail
Looking over accounting reports is a good way to see where the business is financially to make plans based on accurate data. While a company that expands has more opportunities, they also have more information to manage.
Standard accounting software may not provide the things construction companies need. Does the software provide detailed work-in-progress tracking? Does it accurately list job costs to show you where you’re spending the most?
The most successful companies rely on detailed reports to help them stay on top. If you don’t have access to the information you need, it could be time to make a change.
Mistakes Are Happening More Often
When you try to work around the shortcomings of your present accounting software to avoid making a switch, mistakes are more likely to occur. Trying to use a program for functions it wasn’t designed for usually leads to mixed results.
Errors tracking costs, incorrect data reporting, and vanishing entries are all symptoms of an inefficient accounting software.
While standard accounting software may be great for smaller and simple organizations, construction companies need programs designed for the unique challenges they face.