7-24-20

10A — July 24 - August 13, 2020 — Financial Digest — Tax Issues/Accounting — M id A tlantic Real Estate Journal

www.marej.com

T ax I ssues /A ccounting

ost construction busi- nesses select a ba- sic accounting soft- Transitioning to an ERP System may be the key to growing your profitability 10 signs the time has come for a new construction accounting system M transmissions are in one shared repository.

developer when that “standard” accounting product is simply not enough – a time when a full Enterprise Resource Planning platform (ERP) makes sense. Here are 10 common signs that your business is ready for a full ERP system. 1. Your company has be- come multiple entities. There are many reasons why your corporate structure may need to become more complex. For example, a developer that manages its own properties may want to track projects as separate entities during con- struction and after build-out. Your business software should

accommodate multiple entities while still providing an overall view of your business finances. 2. You need to manage customer relationships more closely. A robust ERP system with a fully integrated customer resource management (CRM) platform should function as the single storehouse for all docu- ments and agreements. This includes information about billing milestones, work order submittals, change orders and other compliance records that impact a project. Additionally, ERP integrates with email, so all related conversations and

duplicate data entry. As companies mature, they often need to add more pow- erful payments processing, CRM, marketing automation and business analysis tools. A robust ERP system built on open application programming interface (API) standards en- ables dissimilar software ap- plications to communicate with each other and dynamically share data (i.e. “talk” to each other), eliminating the need for duplicate entry. 5. You need greater in- sight into your business. Your accounting system should help you manage the business and improve perfor- mance. Look for ERP software that lets you set up visual, intuitive dashboards contain- ing widgets that track key performance indicators and applications from inside and outside your organization. Us- ers should be able to drill down to quickly access and track critical project data, material arrival timelines, invoice ap- provals and expenses. 6. You’ re not gett ing enough customization or innovation. Your business sof tware should adapt to your business, not the other way around. If you want to take advantage of business functionality that en- hances profitability, you’ll need to make the move to an ERP platform that offers customiza- tion, and delivers new proptech features and innovations that can radically enhance the way you run your whole business – not just your accounting. 7. You’re not receiving the benefits of a true SaaS system. True SaaS provides access anywhere, anytime on any de- vice. A modern cloud ERP plat- form allows you to access your business applications from any web-enabled device without installing software. There won’t be additional services to buy, applications to install or special configurations to endure. 8. You’re running out of user licenses. When you first signed up, your software’s user capacity probably seemed like more than enough. But as your business grows and adds locations and headcount, you may find that you’re running through those licenses quickly – and can’t even consider providing limited secure access to users such as continued on page 16A

3. You need greater con- trol over production and inventory. The capability to track your inventory across all locations is essential to timely deliv- ery and efficient operations. Your software should give you the flexibility to choose your method – whether average cost, first in first out or last in first out – and to change over time. Your system should be intui- tive as well, making proactive inventory replenishment sug- gestions. 4. You’re wasting time on

ware program wh e n t h e y first launch ope ra t i ons . At that point, it is a good choice – af- fordable, and easy to set up and use. And the software

Michael Mullin

may even have limited func- tionality specifically designed for the industry. But there comes a time in the lifecycle of every growing contractor and

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