I stood in front of about 10,000 people (in-person and online) just weeks ago and talked about Construction Financials and job costing. It was a big moment for me, and for the industry, because I announced we would be releasing the first job costing tool created in the last fifteen years. And that announcement was directly related to the idea of openness.
I spoke about openness meaning choice. Openness meaning freedom. Openness meaning partnering. And openness meaning truth. These principles of our company are central to our products, and Construction Financials in particular.
Construction Financials untethers you from legacy, antiquated ERP systems, and gives you the freedom to choose the systems you want.
Construction Financials is a robust job costing solution that connects the field and the head office––providing financial stakeholders with the data they need to confidently make informed decisions. To Procore, Job Costing is the ability to assign costs to a job, account for direct and indirect costs, and create reports outside of P&L (like job cost reports, cash flow, and work in progress). Procore is deconstructing the traditional ERP model by bringing job costing out of the office and into the field where costs occur.
How does this work with accounting solutions?
When we talk about accounting, we mean traditional accounting that includes your general ledger (GL), assets and liabilities, and credits and debits––anything that isn’t specific to construction or costs associated with your project. As you know, a GL is the master set of accounts that summarize all transactions occurring within a business. So, when someone talks about balancing the company books, they are talking about the GL.
Procore’s vision for Construction Financials is to become a fully functioning job cost system with advanced reporting capabilities that allow you to manage all of your job costing needs, from Payments to Receivables.
What’s the difference?
We are redefining what the industry should expect from a job costing solution. It should be a mobile, cloud-based system, with access to real time data. By moving job costing to the cloud, we provide teams with a collaborative environment that gives financial stakeholders the resources to make the decisions they need to, when they need to––without having to wait on anyone.
When you can find the essential data (the truth), when you need it, you do more than run a great project––you run a great business.
Construction Financials brings job costing out of the office and into the field. This allows project teams to manage costs in real time, in one system that rolls up to the company level, and gives executives a pulse on their company health at any given moment.
What does all this have to do with openness?
Openness is imperative when developing our products and defining the future vision of the Construction Financials product line. Openness refers to choice, freedom, partnering, and truth.
Choice and Freedom
With Construction Financials, in the future you will be able to use any accounting system you want. Construction Financials untethers you from legacy, antiquated ERP systems, and gives you the freedom to choose the systems you want. Let me emphasize that again. You have the freedom to choose ANY solution you want, have, or need. Imagine broadening your current choices from Construction ERPs to solutions like Xero, Intacct, Workday, or NetSuite! This is what we are working towards.
We built Construction Financials in partnership with our clients, customers, prospects, and App Marketplace partners. By continuing these key relationships, we’ll work to enhance our job costing solution and improve or develop more key accounting integrations to ensure you have the choice and freedom to connect your favorite accounting solutions with the industry’s first cloud-based job costing solution that starts in the field.
Our open strategy exists to reduce the FRICTION in your business, which in turn enables you to do what you do best... BUILD. When you can find the essential data (the truth), at the given moment you need it, to make informed decisions, you do more than run a great project––you run a great business.
Check out the full keynote from Groundbreak 2017: