Accurate data reporting provides your organization with precise insight into your financial well-being. It is essential that you maintain correct accounting records if you want to know your company’s financial situation at any given time. Having reliable, simple-to-understand accounting reports available when you need them is a smart first step in making sure you always know the state of your company’s finances and can make sound business decisions based on that data.
Why accounting reports are so important for Real Estate Developers
These Reports and the accumulated data are used by management to get insight into what’s happening in the various development projects or segments of the business and allows management to make key decisions about its operation – such as how to generate revenue and grow profits. It can enable management to make decisions about general strategy or implement procedures that not only save time and money, but also provide staff members clear objectives and methods for achieving them, along with overall productivity.
Furthermore, most real estate developers base their project forecasts on how their last project performed. And although correct for that particular project, the past project costs are out of date and may not be applicable to subsequent developments. As a result, forecasting can be imprecise without the correct up-to-date data. Project data taken from a spreadsheets or from memory isn’t usually correct either. Developers need tools specifically designed for these purposes.
No matter the size of the real estate development projects you’re working on, it’s crucial to have a pulse on costs at any given time. This includes both the hard cost data and soft cost data along with change orders and potential contingencies. Having the ability to gather the information you need and provide complete visibility to stakeholders with accurate reporting is mandatory.
Basic Accounting software vs. Industry Specific Software
Generic accounting software programs such as Quickbooks, do a great job of providing many different types of businesses with accounting software. The reports it creates are useful and accurate. However, a real estate developer’s needs differ from other types of companies, as such, their software needs are different as well. Generic accounting software does not offer what developers need and often requires multiple systems and spreadsheets to piece together a solution.
When creating a report, it is important to engage and tell a compelling story about what has been accomplished on the project and what your team wants or needs to do in the future. It is not sufficient to simply give the information – especially for real estate developers. Generic Accounting software does not do this.
A Better Alternative
Budgetrac Real Estate Development Accounting Software is specifically designed for developers and provides reporting centered around projects as well as providing typical accounting information like cash flow or owner’s equity.
Budgetrac Software possesses a high level of project accounting and financial reporting capabilities, its unique and flexible design does not require extensive setup time and effort compared to other accounting software with similar complexity and features.
Budgetrac has intelligent reporting with the ability to view all your projects in a single report and enables you to see both project cash flow and profit/loss on a single report.
Easy-to-use reporting tools provide access to the financial and project data, from all perspectives—all supported by auditable detail transactions. Simultaneous cash and accrual accounting methods produce both financial statements and detailed ledgers. Although Budgetrac possesses a high level of project accounting and financial reporting capabilities, its unique and flexible design does not require extensive setup time and effort compared to other accounting software with similar complexity and features.
Our “date sensitive” system allows you to go back to previously closed accounting periods to adjust—with appropriate access controls. This can relieve the stress of period and year-end closings. You can adjust a prior year and update the current year opening balances. All reports support drill-down and drill around functionality that enable you to access the information you need from one financial report.
Budgetrac was developed specifically for project-oriented accounting, with the project perspective and financial entity perspective receiving equal weighting. All accounting functions are “project-aware”—that is, each function can supply the necessary project information to complement the general ledger information. Budgetrac understands that maintaining coordinated project and ledger perspectives is the key to fully implementing real estate developer solutions. The project perspective provides visibility and control, whereas the accounting perspective assures compliance with necessary reporting standards and lending requirements.
Ready to See the Solution?
If your company is still utilizing Quickbooks for your accounting to track your real estate development projects, then you may not be aware that there is a better and more accurate option. Let Anton Systems show you Budgetrac. Contact Us today to learn more or to request our sample report booklet.