3 ways ERP systems can simplify construction accounting

With the right ERP systems by their side, construction companies can leverage their project performance and devise a plan to grow sustainably. Here are 3 of the critical tools providing benefits to accounting and administration teams in the construction industry:

Optical Character Recognition (OCR): OCR technology is a great way to improve efficiency in your Administration and Accounts Payable department by reducing data entry time and minimizing human error. You can easily manage documents and automate AP invoice processing with OCR technology integrated with an ERP system. In earlier versions of ERP, when receiving an email with an attached invoice from a vendor or trade, you had to manually enter AP bills into the system based on that invoice (which could be time-consuming and error-prone). But modern software and OCR features can be configured to recognize those attached invoices and automatically create properly coded AP Invoices with a single click. Look for tools combined with approval logic, workflows, and automation designed to fit your business requirements; these tools help eliminate paper and invoice process steps.

Trade Portals: Trades, owners, and general contractors want fast, accurate, collaborative billing processes that streamline communication across stakeholders. Billing delays directly impact every construction company’s ability to track and manage project costs. These tools give the trades and vendors access to a portal that provides flexible, interactive, real-time communications between businesses and the Builder’s staff. Minimal risk is introduced to system security using recommended best practices for user access. Portals generally give capabilities to send individual or group messages, including documents and reports. This enables communication without the need to send e-mails, make phone calls, or perform downloads to wireless devices, reducing the inherent expense of missing information.

API Integrations: APIs within your ERP are essential to modern business strategy. APIs are interfaces that define how different applications interact with each other. Despite their multipurpose nature, ERPs aren’t the only technology organizations rely on. Many construction companies use highly specialized applications for particular business functions (e.g., BIM or Estimating tools). Therefore, APIs can significantly enhance your business’s use of ERP software. APIs ensure that the ERP is easily accessible to other applications and vice versa.

Conclusion

Shifting industry demands and input cost increases make it more important than ever to gain efficiencies and deliver on-budget, high-quality projects with high levels of client satisfaction. The three functions discussed above may or may not be available in your current accounting or ERP system. Modern ERP systems like Acumatica and Sage Intacct can help you grow your construction business. MNP Digital’s technology advisory services guide construction companies through the evolving world of ERP systems, and our Digital Platforms team has extensive experience helping construction companies, builders, and contractors, through ERP implementation. You can contact us for more information on Acumatica or if you wish to learn more about construction ERPs.