Bridging the Gap Between Project Management and Accounting

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Having access to the right information at the right time when analyzing, planning, and managing data is important. One must be able to have an overall view of an organization as well as a detailed view by department. Regardless of your role, everyone must agree on one thing; effectively managing a project and efficiently planning a resource’s time is the key to a successful project.

We all want to be able to control all of the elements that may impact a project’s performance but this is virtually impossible, therefore you must have the tools to help you quickly adjust and adapt to changes. Many say that the key to success for project management is if you can manage milestones, resources, and deadlines.  But the issue remains: was your project profitable?

The question now turns to: how do you bridge the gap between your project management and your financial system? Where there is collaboration, there is productivity. Yet, there are few solutions that bridge the gap between tracking project management activities and the associated costs.  There are possible workarounds and shortcuts that exist; one of the most popular is managing everything within a GL code. It works, but this opens the door to errors and it could take a long time to extrapolate the data once it is in the system.  I’m not saying that it isn’t possible, it’s just not efficient. By keeping these activities separate, there is a greater risk that activities related to a particular project will be miscalculated or forgotten all together.

The challenge in today’s business world is that Project Managers are expected to do both; it is no longer just accounting’s job to calculate a project’s profitability. Project Managers must estimate and allocate tasks to a particular team or resource, but they must also calculate the time and costs. By enabling Project Managers to follow projects more closely and at a more granular level, they now have a better chance of remaining on budget and profitable.

Another evolution in project management is the idea of everyone being accountable for their portion of a project. By being able to break down a project and allow for more people to have access to clear and relevant information in real-time, each individual can now set personal priorities, anticipate issues sooner and make quicker and more informed decisions on their specific part of a project.

So when you are looking at your next project (pun intended) within your own ERP solution, look at evaluating whether or not your organization has an integrated project management and accounting practice. If you answer no, some top features that should be on your checklist include a planning module that integrates to your employee’s time & expense entries, a solution that is fully integrated to a financial solution such as Microsoft Dynamics GP, and a consulting firm that specializes in project accounting as it is no secret that a project accounting module requires many business decisions when it is being implemented.

Learn more about how you can bridge the gap between project management and accounting with JOVACO Solutions by calling us at 1-888-988-3535 for more details.

By JOVACO Solutions, your Quebec-based Microsoft Dynamics GP partnerRead phonetically Dictionary

1 thought on “Bridging the Gap Between Project Management and Accounting”

  1. For project management, it's important to have numbers that you can rely on. Spreadsheets are often error-prone so it's best to upgrade to a budgeting and planning solution that forecasts for the future. Decision makers often need quick access to accurate data in order to be competitive.

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