Properties Magazine March 2017 : Page 47

your new system, the reports coming out of it will be flawed. And this is a particular danger when transition-ing from an older software platform to a newer one. For example, you may be working off of inaccurate inven-tory counts or struggling with duplicate vendor entries. On a more serious level, your database may store information that reflects improperly closed quarters, unbalanced accounts because of data entry errors or outstanding retainage on old jobs. Too often there is a rush to imple-ment a new system by a specified date. Cleaning up the data is usually the first thing to go when trying to meet these deadlines. A methodical, analytical implementa-tion should uncover some or, one hopes, all of such problems. You can then clean up the bad data and adjust entries to for instance, add new phases or cost code groups that allow you to manage project expenses much more efficiently and closely. Beyond job costing, other oppor-tunities for improvement include optimizing your chart of accounts and improving your internal controls. Again, to obtain these benefits, you’ll need to take a slow, patient approach to the software implementation. Getting a leg up Just thinking about what could go wrong will give you a leg up on avoiding the biggest disasters. To further increase your chances for success, involve your CPA in the implementation. P Jim Komos, CPA, is a tax partner with Ciuni & Panichi, Inc. He can be reached at 216-831-7171 or jkomos@cp-advisors.com. The Ciuni & Panichi, Inc. team provides audit and accounting services, tax compliance and consulting, valuation and litigation support, management advisory services, wealth man-agement, growth management and retirement planning. A major risk to construction accounting software implementation is imprecise or incomplete job-costing data. Contractors face a distinctive challenge in integrating not only general business accounting data, but also the details of multiple, ongoing projects. tighten the accuracy of your account-ing records and, thereby, improve your financial reporting. Seizing opportunities A major risk to construction accounting software implementation is imprecise or incomplete job-costing data. Contractors face a distinctive chal-lenge in integrating not only general business accounting data, but also the details of multiple, ongoing projects. A typical approach is to move job-costing info from the old system to the new one as quickly as possible, using whatever on-the-fly method seems most expedient. Naturally, doing so can lead to data transfer errors. But, again, there’s also a risk of missed opportunity here. When upgrading to a new system, you’ll have the chance to improve your job costing. You may be able to, www.propertiesmag.com 47

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