Deploying accounting software is not only limited to retail or manufacturing companies, home builders or real estate developers can also tap from the numerous benefit of automating their accounting systems.
Let’s see what typical accounting software will do for home building and real estate developer:
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Job Costing
Using an accounting software will help your track all the expenses incurred on a project or contract accurately as you can create a job task and description specific to a project and have all materials used and income earned reported on a real-time.
You will also be able to track all profit or loss figures so that If the profit figures are not as high as they should be, this will help you adjust future bids for jobs so that they can be more profitable. It also allows you to see if you bid the appropriate amount of materials for the job.
Completed Contracts
When building several homes at once, it can be helpful to use a completed contracts method when looking at the overall profitability of your company. When looking at profit and loss statements, you have the option of looking for jobs by job type. If a job falls into the category of a “Current Contract,” it is still in progress. If a job is considered a “Completed Contract,” it is a finished job. By looking at the completed contracts together, it helps you gauge the overall profit margin of your business.
Financial Report
Aside from the specific features mentioned, you can also track general business transactions as highlighted below:
- Overall Company’s Income
- Overall Company’s Expenses
- Bank Transactions and Reconciliation
- Account Receivables and Payable Balance Report
- Profit or Loss Account
- Statement of Financial Position
- Statement of Cash flow
Read More: Accounting Software For Real Estate Managers