How Sage Intacct Helps You Track Revenue, Backlog, and Billings in Excess of Costs

In construction finance, billing and revenue don’t always align. You may bill a client for work in advance, or you may have costs piling up before you can invoice. The unpredictable nature of long-term construction projects leads to challenges with revenue recognition, tracking your backlog, and?

Many construction finance teams still rely on spreadsheets for these calculations, but manual processes leave too much room for error. Sage Intacct eliminates the guesswork, providing real-time financial visibility and automating revenue recognition so you can focus on making informed decisions.

Stop Manually Tracking Revenue Recognition

GAAP accounting rules require you to recognize revenue in line with costs, but tracking this manually in Excel is inefficient and risky. You might overstate revenue, understate profit, or even miss key costs that should be included in your calculations.

Sage Intacct automates this process by linking revenue recognition directly to your billing and cost data. Instead of manually adjusting spreadsheets every month, you can rely on the system to calculate revenue based on project progress and costs incurred. This ensures that revenue is recognized correctly and consistently—whether you're working with lump sum, time & materials, or unit price contracts.

With Sage Intacct, you get:

• Automated revenue recognition that aligns with GAAP, so you don’t have to calculate adjustments manually.
• Clear reporting on billed vs. unbilled revenue, helping you understand exactly where you stand financially at any point in the project.
• Real-time cost tracking, ensuring all expenses are accounted for when recognizing revenue.

Eliminate WIP Reporting Errors

If you've ever overbilled a project, you know it creates a temporary boost in cash flow—but also a risk of misstating revenue. Underbilling, on the other hand, can leave you scrambling to cover expenses while waiting for payments to catch up.

Calculating your billings in excess of costs and costs in excess of billings is an essential task when creating WIP reports, and it can be quite time-consuming if you have to do it manually.

Sage Intacct helps you track these numbers accurately by automatically calculating billings in excess of costs and costs in excess of billings. Instead of relying on separate spreadsheets and manual reconciliation, you can see exactly how much you've billed compared to costs incurred—without the risk of data entry mistakes.

When you use Sage Intacct for billing:

• Your system automatically flags overbilling and underbilling situations, helping you make better financial decisions.
• Adjustments to billings or costs update in real time, so you always have an accurate financial picture.
• You can generate exception reports to review revenue that wasn’t properly captured, making it easier to correct issues before they become major problems.

Get Real-Time Visibility Into Your Backlog and Future Cash Flow

Your backlog represents contracted work that hasn’t been billed yet—and if you’re tracking it manually, you might not be seeing the full picture. Without an accurate backlog report, you can’t properly forecast revenue, plan cash flow, or make informed hiring and purchasing decisions.

Sage Intacct connects your backlog tracking to your billing and WIP reports, so you always know how much work remains and when it will turn into revenue. You don’t have to pull numbers from different spreadsheets or manually update backlog totals—everything is calculated automatically based on your contracts and billing history.

When backlog is integrated into your financial system, you can:

• Forecast revenue with confidence, knowing exactly how much work is left in your pipeline.
• Plan cash flow more effectively by understanding when payments are expected.
• Identify gaps in upcoming work and adjust bidding strategies accordingly.

Make Smarter Decisions with Real-Time Financial Clarity

Tracking revenue, billings, and backlog manually isn’t just time-consuming—it’s a risk to your bottom line. Sage Intacct automates these processes, ensuring that your financial data is accurate, up to date, and easy to understand.

With the right system in place, you can eliminate errors, improve forecasting, and make better business decisions. If you’d like to see how Sage Intacct can help your team gain real-time financial clarity, let’s set up a time to talk!