The construction industry is one of the largest industries in the world that requires great manpower to thrive. To manage and get a streamlined workflow, taking the help of accounting software is a must.
Ever since the outbreak of the pandemic, the construction industry has seen a significant increase in the use of cloud-based software solutions for a good reason.
Cloud-based software solutions offer a range of benefits, from cost savings to increased productivity. One of the most significant benefits of cloud-based construction accounting software is the ability to collaborate in real time.
This blog will explore the benefits of real-time collaboration in cloud-based construction accounting software. But before that, let’s understand why we need to adapt ourselves to cloud-based systems.
What Is the Role of Traditional Construction Software?
Traditional construction software refers to software solutions that have been around for several years and are widely used in the construction industry. These solutions include project management, cost estimating, scheduling, and building information modeling (BIM) software.
Each software type offers different functionalities, but they aim to make the construction process more efficient, reduce errors and delays, and improve stakeholder collaboration.
How is Cloud-based Construction Software Different Than Traditional Software?
Cloud-based construction accounting software, or Construction Management Software as a Service (CMaaS), differs from traditional construction software in several ways.
Accessibility
For traditional software, you would have to install a local computer or a server that is often hard to find or set up on a construction site. That’s where cloud-based systems are put to use.
With cloud-based accounting software, you can access your documents, sheets, maps, designs, etc., from anywhere. All you need is an internet connection. On top of that, you can access your records from multiple devices and locations, which improves collaboration and productivity.
Scalability
When it comes to being adaptable per your needs, cloud-based software is the most scalable that helps you meet the ever-changing needs of your organization.
On the other hand, traditional software often requires significant investments in hardware and software to increase capacity, which can be costly and time-consuming.
Maintenance
The added task of maintaining the construction accounting software you are already paying for can be daunting. While traditional software requires costly maintenance processes and upgrades regularly, cloud-based software doesn’t.
Cloud-based software providers take complete ownership of maintaining the system. They will ensure that your software is up-to-date without any hidden charges and will also be available for any additional support along the way.
Cost
One of the most important reasons for migrating from on-premise software to a cloud-based system is the cost-benefit.
You can save a lot with cloud-based software as it offers a subscription-based model. On the other hand, traditional software requires high upfront costs for licensing, installation, and maintenance.
Cloud-based construction software offers several advantages over traditional software, including accessibility, scalability, maintenance, cost, collaboration, and integration.
What are the Benefits of Cloud-based Construction Accounting Software?
Improved Communication
To leave a positive impression on general contractors, construction teams need to work efficiently. This involves the preconstruction team performing speedy takeoffs and estimates, the project management team keeping track of site activities, and the finance department using cloud-based construction accounting software.
Therefore, when considering transitioning to the cloud, it is crucial to identify the required capabilities. The software should be compatible with both Mac and PC, and plans and specifications should be easily accessible on any device, enabling teams to retrieve them on the field quickly.
Moreover, it is important to consider the working conditions that are most conducive to productivity. Cloud-based tools offer increased flexibility, allowing teams to work from the office, the field, or their homes.
Remote teams can effectively manage their time and responsibilities, leading to increased job satisfaction and loyalty. A balanced work-life schedule can also contribute to better performance at work, translating into faster and more efficient project completion.
Enhanced Project Management
Effective project management requires close monitoring of project schedules and progress. However, keeping track of these factors manually can be a challenging task, with different projects requiring different methods of tracking progress. Some projects may require team members to be regularly updated on the project calendar, while others may require daily meetings to coordinate tasks and goals.
Real-time access to project schedules is critical to effective project management, and cloud-based tools make collaboration effortless. By establishing a single master calendar accessible to internal and external stakeholders, everyone can remain informed and updated on project schedules. Team members can easily update the calendar with their progress and prioritize their tasks based on the deadlines.
Cloud-based tools facilitate collaboration between stakeholders and contractors, ensuring that the project remains aligned with the proper schedule and that the team remains coordinated. By utilizing cloud-based project management tools, you can streamline project management, improve communication, and ensure the success of your projects.
Improved Accuracy
Cloud-based tools offer the advantage of providing a centralized data source, minimizing the chances of errors occurring. For instance, when creating an estimate based on takeoffs, exporting measurements into Excel and manipulating the spreadsheet can introduce errors that might be difficult to spot. A misplaced decimal point, for example, can lead to erroneous figures, undermining the estimate’s credibility.
By contrast, utilizing a cloud-based platform enables you to produce accurate and detailed estimates that will impress general contractors. Even if your bid is not the lowest, your expertise will shine through, and contractors will have greater trust in your ability to execute the project correctly.
Resource Management
Construction project management software offers several benefits, including efficient resource management. Although closely related to cost control and revenue estimation, resource management deserves special attention in its own right. Resources such as inventory, equipment, skills, and knowledge are crucial for successfully completing any project.
By utilizing Construction365 by DynamicsSmartz, which is a Microsoft Gold Partner, you can ensure that resource usage is in line with initial estimates and identify opportunities for optimization. The software can track, analyze, and organize resource usage data, which can be saved and utilized for future project optimization.
Better Support
Efficient cloud document storage and organization enable your team to access the latest versions of plans and documents from anywhere in just a matter of moments. This capability allows you to present yourself as a prepared and capable partner when discussing documents with general contractors.
Generating a professional proposal that accurately reflects all bid documents, alternate materials, value adds, and a clear pricing breakdown demonstrates your company’s expertise and attention to detail. Utilizing cloud-based tools, you can generate proposals directly from your estimate data, ensuring accuracy and completeness.
Online plan rooms provide a platform for submitting bids directly to General Contractors. By leveraging the wealth of information available in these rooms, such as contact information and specifications, you can tailor your bids to the specific requirements of the project. By adhering to best bidding practices, you can differentiate yourself from the competition and showcase your capabilities. Don’t hesitate to request additional details if any aspect of the bidding process is unclear.
Summing Up
Real-time collaboration in cloud-based construction accounting software provides a range of benefits for stakeholders. Real-time collaboration can significantly improve the accounting process, from improved communication and enhanced project management to increased efficiency and greater flexibility.
With the increased accuracy and security of financial data, stakeholders can make better-informed decisions and achieve better project outcomes. As the construction industry continues to evolve, real-time collaboration in cloud-based construction accounting software will become an essential tool for stakeholders.