Home COVID-19 How Advanced Construction Accounting Technology Can Help Contractors Recover From COVID-19

How Advanced Construction Accounting Technology Can Help Contractors Recover From COVID-19

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From the loss of lives to the economic downturn, COVID-19 has shaken the global economy. Just like any other service sector or industry, it has been severely destructive to the construction industry. The impacts of COVID-19 persists. Although saving lives and preventing the spread of the contagion is the primary concern of federal authorities, loss of projects and jobs requires a serious revival plan for construction that includes technology.

Construction accounting software is one technology that could help contractors weather the economic downturn and sustain their business. 

How Construction Accounting Can Help

The cloud and business intelligence has helped streamline construction. This means the present-day construction accounting software is no longer restricted to sheets and unorganized data. 

Many accounting software packages can handle Project Management, Enterprise Resource Planning and Customer Relationship Management. The data generated can justify project delays to contracting officers or project owners due to the pandemic. Accounting software can also track resources and data needed to access federal funds and meet the requirements for qualifying for CARES Act funding, loans or tax relief.

Technology against the Economic Battle and Liabilities

Since most construction companies are susceptible to liability challenges from delayed deliveries, software can generate project data such as labor and project costs to justify claims to benefits under laws, such as force majeure provisions or insurance or liability claims. 

Project Management

One of the most significant aspects of a construction business is having the upper hand with Project Management tools. Construction project management software helps contractors streamline tasks, even with limited resources. Using project management techniques, such as custom software based on Microsoft Dynamics 365 Business Central, will help keep projects organized from start to finish. Users can track  project progress as well as cost categories based on labor, materials and equipment. This information assists in future job forecasting.

ERP Support

Construction companies can streamline data and records in construction accounting Enterprise Resource Planning software in order to offset liabilities and payroll taxes. Moreover, the software can help struggling firms manage operations during COVID-19 with support on recovery efforts and planning and finding ways to sustain or restart halted projects. If the present or post COVID-19 situation is considered, contractors can quickly create resources for labor and equipment, regarding special costs for different projects. The control of human resources and material management makes it easier to restructure tasks accordingly without breaking the continuity and hold up deliveries.

CRM Practices

Customer Relationship Management can help sustain a business during a crisis. SaaS-based construction accounting software can be programmed to serve every process related to client engagement, such as tracking expenses on each project. Watching jobs and tasks closely makes it easier for contractors to interact with stakeholders and reduces the chances of clashes among stakeholders and the construction firm when an emergency, like the COVID-19 pandemic, leads to the suspension of the project.

The Crux

The spread of COVID-19 has caused setbacks for even construction giants, but technology could be the boon that brings construction firms back stronger than ever as contractors routinely map losses, risk and opportunities. Futuristic construction accounting technology will not only help improve trends related to project progress but also build harmony between construction companies and project owners.

Originally publised July 4, 2020 by Construction Executive, a publication of Associated Builders and Contractors.

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