Project accounting software
Project accounting is simply accounting on a project-by-project basis. Project accounting tracks all of the financial components of a project such as budgets, estimates, costs, bookings, billing, and everything in between. It is an important aspect of project management software because it’s important to know whether a project is on budget, if it’s profitable and it also gives you insight on what to bill. Project accounting is included in Professional Services Automation (PSA) and Enterprise Resource Planning (ERP).
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How does project accounting differ from standard accounting?
Standard cloud accounting deals with the macrocosm of accounting for a company as a whole, usually within a fixed time period (i.e. quarterly or annually). Standard accounting tallies the total expenditures, budgets and accounts payable across all projects within an organization.
Project accounting monitors the financials of individual projects. It allows companies a closer look into their day-to-day financials, which in turn allows them to identify areas of their finances that can be optimized. It also allows them to identify trouble areas that could impact margins.
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How does project accounting improve a project's overall financial health?
Project accounting is powerful because it deals in specifics. By using some form of project accounting software, professional services organizations can locate and eliminate workflow issues (i.e. time-consuming invoicing, miscommunications between departments, etc.) that consistently occur from project to project. It eliminates inaccurate revenue reporting, tracking profit margins, and utilization.
Once a company has identified individual solutions for one project, it can use the same software to automate much of their project financials for all company projects. Not only does this help avoid errors and ensure accurate accounting, it also frees up time, which in turn allows companies to pursue more growth-oriented tasks with human resources.
What makes project accounting software a useful business tool from an organizational standpoint?
One of the most touted benefits of project accounting is its ability to track the budgets and revenues across every stage of an individual project. This empowers project managers because they now have access to everything from project hours and total expenses to incoming invoices and milestones.
Having access to project accounting software ensures that an organization can collaborate on budgets and finances between departments. It also helps management monitor and, if necessary, reassess a project to ensure it meets the overall financial goals of their company.
How will you benefit from the project accounting software functionality in FinancialForce PSA?
Get full visibility of your project’s financial health
FinancialForce PSA and the powerful project accounting software functionality provides online access to all the financial detail related to your services projects and opportunities at anytime (and from anywhere). It can start even before a deal is won because FinancialForce PSA is on the same platform as Salesforce Sales Cloud.
- Get anytime access to project related financial data and budgets
- Filter info easily by region, practice, and/or group breakdowns
- See the finances of projects in every stage: opportunity, in process and completed
Grow project margins
The project accounting software component also allows you to track planned revenue, cost and profit margin to evaluate if the project meets profit requirements before it even kicks off. As the project progresses you will get detailed information into expenses, hours submitted, and can also track when bills are processed, sent, and paid.
- Track planned revenue and profit margin when projects are created
- Track project financials in real-time as the projects progress
- See profit margin, expenses, and related financial detail rolled up to regions, practices, and groups.
Billing & invoicing the way you want
Get flexible billing options which means you are free to develop pricing and billing processes that satisfy customers’ demand and maximize your revenue without driving up administrative costs. Specifically, this project accounting software allows you to:
- Bid to bill process is automated and visible to sales, services and finance
- Bill by time & expense, flat fee, pre-bill, retainer
- Combine different billing types on the same project
- Eliminate errors with flexible configuration, workflow, and controls
- Generate invoices with FinancialForce Billing or integrate billing events to your financial backend of choice
Manage revenue recognition as projects progress
With the FinancialForce project accounting software and revenue recognition modules, you can connect directly to milestones or project completion percentages to calculate and record revenue as projects are completed.
- Calculate revenue recognition based on project or milestone completion
- Set up revenue recognition rules to match your business need or processes
- Import revenue transactions into your financial system
- Get visibility into what is ready to bill, has been billed, and what has been invoiced
Create and track project budgets
Track a budget in a way that meets your needs. With FinancialForce PSA and its project accounting, you can create one or more budgets for each project. Track actual expenses and billing to see how you’re progressing against your budget - meaning you can rapidly adjust to control costs and preserve profit margins.
- Auto-create budgets from opportunity detail or use our flexible budget creator
- Monitor actuals in real-time against the budget as the project progresses
- Use access and workflow rules to control budget approval and requested changes
What are the benefits of FinancialForce's project accounting capabilities being on the Salesforce platform?
FinancialForce Professional Services Automation (PSA) includes project accounting functionality and is built on the Salesforce platform, - the same one that award-winning Salesforce CRM is built on. By having all of the project accounting information inside Salesforce CRM, users can review finances of projects at any stage, whether it’s at the opportunity level or in progress. Thousands of companies are already familiar with the Salesforce platform, and as such, they can easily migrate their back-end processes and front-end processes into one, consolidated area shared by their entire company.