Real estate development processes are lengthy and complicated. Effectively orchestrating the complete real estate development cycle means your real estate development accounting software must work harder than you. Otherwise, accounting transactions may not be adequately accounted for or accurately reported.
Today’s shifting landscape means it’s more important than ever to adopt the right real estate development accounting software or land development accounting tool to manage costs and efficiencies. Handling real estate-specific transactions requires software that’s built with developers in mind. To ensure you’re not making important decisions or reporting based on outdated, incorrect, or incomplete data, you should be asking these questions.
Does It Allow for Real-Time Visibility on Project Costs?
For every project and throughout each real estate asset life cycle, your real estate development accounting software should give you end-to-end visibility. It’s essential to have access to real-time accounting records and reports. Without it, you’re likely missing out on opportunities or critical, timely information necessary for well-informed decisions.
Does It Make Accounting Data Easily Accessible for Multi-Company Projects?
It’s your accounting data that support future decisions. If your data isn’t complete, up-to-date, or easily accessible for multi-company projects, it can be costly for everyone. It can create process bottlenecks, and if multiple companies are involved, it can throw projects in each of them behind schedule. Real estate development accounting software must solve the data collection and reporting problems that developers encounter.
Can You See Cash Flow and Profit/Loss in a Single Report?
Without a single report of cash flow and profit and loss at your disposal, it’s virtually impossible to know which of your existing projects are under-funded and which types of projects are worthwhile pursuing in the future. These reports provide the kind of insight that is foundational to the successful completion of your projects. Without accounting tools geared toward real estate-based transactions, it can impact information needed to meet debt servicing requirements.
Does It Let You Manage Multiple Loans from One Place?
It’s time-consuming and tedious to track multiple loans, generate updates to loan draws, record receipts, and post accounting entries. Effective real estate development accounting software should take care of this heavy lifting and automate the transaction processing. It should afford you time to focus on more important matters: ensuring projects are executed on time, on budget, and meeting the quality standards customers expect.
Does It Allow You to Manage Supplier Contracts Easily and Efficiently?
Each detail in supplier or subcontractor contracts provides the basis for any effort, funding, resource, and activity initiated and completed. For this reason, your land development or real estate development accounting software must be able to quickly and efficiently handle contract management, change orders, and other vital elements.
Real estate and land development accounting software should support industry-specific strategic goals and best practices. It’s only then that real estate and land development activities can be executed with complete confidence. Reach out to your business development representative to discuss this article and sign up for a complimentary Budgetrac demo.