Project Accounting
Does every call from your banker start a financial reporting race?
How Does it work?
Q360™ supplies Project Accounting that connects project tasks to company financials. Q360™ is a Business Process Management (BPM) tool that does accounting — Not an accounting tool that tries to support and manage a business.
If you use business management software that is not project based and incorporates project accounting, you escalate your administrative costs. Information isn’t shared and it isn’t easily accessible therefore it slows down employees and impacts their work as well as the project’s profitability. Just recording transactions only allows a historical view of the transaction.
When you streamline time-consuming complex financial processes into a centralized business process, you can:
- Immediately identify which projects are generating or consuming cash
- Create visibility into discrepancies between actual and estimated expenses during the project not after
- Automate deferred revenue contracts and project cost based revenue recognition
- Accurately track both internal change orders and customer change orders
- Tie project accounting to time & attendance productivity tracking
Project Percentage of Completion and Work in Progress
The revenue principle of GAAP requires revenue to be recorded in the period it is earned regardless of when it is billed or when cash is received.
This is a simple measure if you are selling and shipping a product to a customer, but can become an administrative challenge for companies that are delivering high value, lengthy installation projects. A lot of companies we talk to have disconnected accounting and project tools. They are left to reconcile and manage revenue recognition on spreadsheets, which results in huge investments of time to ensure accuracy.
Q360™ with its project management tools driving accounting, eliminates the arduous task of manually calculating work in progress and cost percentage complete. The matching principle of tying revenues and their direct costs is automatically managed by Q360™.
Q360™ automatically tracks estimated costs and revenues, actual costs and revenues, total billings and percentage complete and keeps them in line, as as close to real-time as possible.
Bottom Line
