Simplify Your Project Costing and Billing Process

Project costing and billing is a source of pain for many companies due to the many processes within a project lifecycle, managing project variations and budgets, as well as keeping track of project profitability. Any mistake which occurs during the project process can lead to project disruptions and billing inaccuracies which are difficult to rectify.

Here are 5 ways to simplify your project costing and billing process:

1) Manage your projects digitally to reduce data inaccuracies.

To start off, here are the main processes involved in the costing and billing for a project:

  • Project Tender and Bills of Quantity
  • Project Budget
  • Handling of Variation Order and Project Retention
  • Delivery, Material on/off-site, Installation, Progress Claim and Certification.
  • Project expenses and Timesheet

Many companies start out by managing their projects via spreadsheets. This may be possible in the beginning, but once projects start to expand and increase in volume, spreadsheets become inefficient as they cannot support a project workflow completely. They may even lead to serious disruptions and inefficiency if the data captured is inaccurate or out of date.

2) Coordinate your project processes and status tracking across departments.

Consider a project cost management software such as SAP Business One to help integrate and track your project status across every business function. For example, your project team can update project status in real-time such as project purchases , which saves time on internal reporting as well as making the information available to other departments such as the procurement, inventory and accounting teams to access and update as needed.

These benefits are shared throughout your functional departments as it increases project coordination and minimises the need for handovers should urgent assistance be required for specific projects.

3) Closely track project purchases and material/labour costs to ensure that projects remain within budget.

A lot of work is involved in project cost tracking as costs can easily add up due to various material and labour costs. Using a project cost management software, your team can easily define project budgets for each project scope to accurately track and incur material costs relating to each project, as well as labour costs according to employee timesheets.

With SAP Business One, the system automatically routes purchase requisitions for management approval if an inventory item’s unit price or total line item amount exceeds the internal benchmark set, or if the new purchase will exceed the budget set aside for the project scope.

4) Monitor billing and invoicing processes closely and ensure payments are received on time.

Besides completing your projects, maintaining healthy cash flow is another critical part of running a business. Your cash flow determines whether your subcontractors and employees can be paid on time, the project sizes which you can take on, and helps to avoid disruptions to your day-to-day business arising from financial difficulties or seasonal demand fluctuations.

There is little use in driving project completions if your business does not receive payments on time. Therefore, we have developed the Inecom Project Billing add-on specifically to complement SAP Business One. Utilising data saved in the default SAP Business One system, Inecom Project Billing improves upon the billing process to enable users to track crucial details such as work status, project certification, project claims, retention and project billing. These features ensure that your users are given a clear direction on pending items as well as immediate actions to take at every project stage.

5) Generate project reports with real-time data.

You have finally completed a long-running project – but not before all the necessary reports are updated and verified for accuracy. This is another major pain point for businesses who run their projects manually, as they now must check that every project stage and any variation are recorded clearly in their reports for auditing and management purposes. 

This process is much simpler if you are using an ERP system, as most ERP systems provide configurable report templates where your project data will be plugged automatically to generate profit and loss reports, project budget reports and timesheets, along with in-depth breakdowns into each project scope, itemised costs, billing stages and more. 

To find out more about project cost management and how to simplify your project management process with an ERP system, contact our team for a consultation today. 

To hear more about SAP Business One and how it can benefit your business, join our upcoming webinar ‘SAP Business One Live Demo’ on 20th July 2023 (Thursday), 2 to 3pm. 

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