Industry knowledge is full of lies. Here’s your guide to calling out the B.S.
You put a lot of effort into continuously excelling in your career. And it shows.
You’ve attended all of the conferences, read all of the magazines, and achieved all of the certifications within your reach to learn exactly how to lead your company to better financial health. But as much as you might have learned about the new productivity tips, financial tools, and career advice, there’s a good chance you’ve never questioned how much of it is valuable insight or industry bull.
When it comes to something as fundamental as knowing what principles will help guide your construction financials to success, you need the truth.
Sounds simple enough, but it can be hard to do—especially today. The sheer amount of information we now have access to puts a strain on our capacity to evaluate it.
So what are the most harmful conventional wisdoms about construction financials that you need to debunk right now? For starters:
- My accounting software is good enough.
- Silos are bad. Adding more software only creates more of them.
- We don’t have the budget for two financial solutions.
- Accountants don’t need job costing software. That’s for the field.
- Project managers work well enough with accounting software.
Ultimately, getting down to the truth of the matter will provide you with an easier way to take control of your margins, increase job costing efficiency in the field, and mitigate the risk of harmful lies that could shrink your margins and strip your job security.
Let’s get started...
LIE #1: My accounting software is good enough.
You deserve the best financial solutions. Not just software that’s good enough.
Remember when all-in-one accounting-based ERP systems were first released and solved everyone’s problems?
Neither do we.
Because as America cruised into the 1990s, people were just harnessing new technologies like VCRs, Polaroid cameras, and ERP systems.
Since then, everything in the past 40 years ––in the office and field––has only continued to evolve even further past the capabilities of these systems. The competition is smarter, the builds are faster, and the projects are more complex.
If you’re still using ERP systems, then you are operating against yesterday’s standards and metrics. And you might be losing out to today’s competition because of it.
That’s why using one outdated solution that doesn’t address the needs of both office and field teams is risky from the start, and costly in the end.
You deserve a modern, innovative solution that gives you the freedom of mobility that stationary servers can’t provide. Something that can keep up with the pace that you need to work at in the field. Because you’re amazing at taking the chaos of staying on top of job costing information. But it makes your job of mitigating risks much, much harder when you don’t have access to that data in real time.
Fortunately, a revolution is taking place in the industry and it’s driven by cloud-based technology. Now’s your chance. Take job costing out of the office and into the field where it belongs.
Truth: Of those that use cloud-based construction software more than half say that their sales have increased between 26% and 50%.
LIE # 2: Silos are bad. Adding more software only creates more of them.
There are good silos and bad silos. Here’s the difference..
In the past you may have learned that collaboration means all of your devices, software, and people need to live and work in a single system in order to function seamlessly.
But that is false.
Your devices, software, and people can and should live together in harmony. But that doesn’t mean they have to live in the same system.
In business, operational silos like company departments are good and necessary. They allow for individual teams within an organization to use their specific expertise, apply it to an individual task, and take ownership and responsibility of their work.
Office teams are asking for more control over who has access to their accounting data. Meanwhile, field teams are begging for real time job costing information and using solutions that manage after-the-fact accounting reports isn’t fulfilling their needs.
Just like how there’s a separation of project managers who are in charge of financials in the field from accountants who manage financial records in the office, there should be a separation between the software that each team uses.
Forcing the two departments to share a single solution is impossible because there is no solution that meets the many very different, and very specific challenges of your various teams. It’s a classic case of accounting vs. job costing––my way or the highway,––when it doesn’t have to be.
Stop providing your teams with ineffective tools, and start providing them with solutions.
Invest in software that addresses the specific needs of each role. Then, use an open API to integrate them. By doing so, you’ll be taking advantage of the incredible efficiencies for which the cloud was created by pulling all those apps into a single integrated system and combining their collective, but disconnected strengths.
Truth: You could be wasting over 20% of your total project budget on inefficiencies and waste caused by siloed data.
LIE # 3: We don’t have the budget for both accounting software AND job costing software.
Time is money. Can you afford to lose both?
For all the progress we’ve made since the cloud’s contribution to construction financial software, we are still a long way from getting the most out of what we have wrought.
The purpose behind any software investment should be about acquiring skills that allow your teams to produce more and better results. In other words… increase profit directly or indirectly.
So why should a project manager, accountant, or CFO encourage executives to invest in the right tools?
Short on Budget, Even Shorter on Time
In the pantheon of precious resources, time is at the top of the heap––especially in construction. You can’t create it, you can’t store it, and you can’t prolong it. It’s perfectly perishable. Instead of focusing on the price tag, consider the impact on the overall improvement of time: better productivity, faster builds, increased bids.
anytime, anywhere. Adopt mobile technologies to streamline approval steps, eliminate the need for timely shipping, and automate email responses––all from your mobile phone.
A sense of security. Ditch the paranoia that comes with installing expensive servers that make it almost impossible for productive work to happen when project managers step outside of the office. A better solution: an easy, and secure, access to everything you need via the cloud––allowing everyone to put in a few extra hours of face time at home.
The need for speed. Busywork is not value-added work. That means automating what you can, and updating old systems that can’t keep up––even if they “still work.”
Truth: Project managers who don't use construction software end up wasting 2+ hours per day on project documentation alone.
If you’ve ever thought your software was “good enough,” download our free eBook to dive into the rest of the 5 myths of the industry that need to be debunked! Get the inside scoop before your competitors!