Construction Accounting Article -
Worth a Look Web-based Project Management Software

Target Audience: Construction Industry Professionals, Contractors, Construction Business Owners, Construction Accountant Interest, Construction Management, IT Professionals, Web-based Applications Interest

Many construction company owners have their own distinctive means of managing jobs, be it a simple spreadsheet or a more advanced tool. If you’re pleased with your approach to project management, great; but one upgrade that’s well worth looking into is Web-based project management software.

Information Where You Need It

Simply put, Web-based project management software lets everyone — from the owner to the architect to the general contractor to subcontractors and suppliers — log on to a project-specific Web site to gather information and communicate with one another. (Typically, the main purchasers of these systems are general contractors/construction managers.)

If, for example, a change order requires approval from the architect, the owner and a subcontractor, each of them can go online to review and approve the order in minutes. Participants can also review job progress, converse on message boards or in chat rooms, and even view the job site in real time via a Webcam.

Perhaps best of all, you don’t have to install special software on every relevant computer. Any user with an Internet connection — and the proper security credentials — can access the virtual job site.

Price Isn’t Everything

When shopping for this type of software, remember that price, though important, is still just one consideration. Perhaps more important than upfront cost is whether the software will do what you want it to do. After all, your return on investment should, eventually, recoup the money you spend.

Before you buy, you’ll want to pinpoint your “mission critical” requirements. For instance, if you’re frustrated with slow response times from subcontractors, you can graphically highlight tasks with approaching deadlines. Some systems even send the affected users an e-mail of changed or new items, so those parties don’t have to log in to the project Web site to get updates.

Generally, a Web-based project management system will replace your existing project management software. These solutions, however, usually don’t integrate with accounts payable or job costing systems.

Tax Savings Included

For a limited time only, there’s also a tax benefit to obtaining a project management solution. As part of the Economic Stimulus Act of 2008, businesses may claim an immediate 50% deduction for depreciable property — including off-the-shelf computer software — placed in service before Jan. 1, 2009.

Better yet, for this tax year, you can also deduct, rather than depreciate, up to $250,000 in asset expenses under Internal Revenue Code Section 179. The phaseout has been increased as well: You can spend up to $800,000 before the dollar-for-dollar reduction in your Sec. 179 deduction kicks in.

Because these are one-year benefits, you need to act quickly to take advantage of them.

Know What Matters

Web-based construction management software can improve your key processes and boost productivity — along with your bottom line. Just be sure you do your homework so the application you buy truly meets your needs and those of other stakeholders.

Find out how our expertise in construction accounting can add value to your business. Email us or call us at 1 (888) 875-9770.

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