Innovation in Software: Accounting
Automation. That is perhaps the one word that best sums up the transformation happening in the construction-technology space, specifically as it relates to accounting.
In the past few weeks, I have ventured through a blog series that focuses on different areas of the business, identifying innovation. I have already explored project management and estimating. Today, I will take a closer look at accounting.
TechValidate Market Research issued an interesting report last year that reveals accounts payable is still a very manual operation—and it is leading to error. In fact, the report shows that “80% of companies that remit over 500 payments a month stated a payment error rate of 1% or higher. 44% had an error rate of over 3%. To put this in perspective, a 3% error rate on 500 payments a month is 15 errors, which can lead to 180 hours or over $24,000 spent annually on payment resolution.”
That is too much loss. Something needs to be done. For the construction industry, more automation is critical to improving accounting. Gaining access to the data that exists within the systems can improve business operations and ensure that error rate is reduced.
The challenge, admittedly, is many construction companies are still working off of legacy ERP (enterprise-resource planning) and accounting systems, which is requiring the use of APIs (application programming interfaces) to get the data in or out. Naturally, this is a costly solution to a costly problem.
This is where accounting software can become more innovative. The data exchange needs to be more seamless and automated, improving operations for construction companies. At least, that is what I am seeing.
What are you seeing? We would love to hear from you. We are looking for feedback for our biannual Constructech IT Playbook. Take the IT Playbook survey and/or the CFO survey now to help us understand how your construction business approaches technology.
Want to tweet about this article? Use hashtags #construction #technology #software #accounting #estimating #automation #API