Accounting Software for Engineers: Project Management, Time Tracking, and Full Financials

What Can Accounting Software Designed for Engineering Companies Do for You?

The reality is that there are many nuances to adequately managing financial information for a business that sells services instead of products. Engineering companies selling their professional services have unique requirements: billing is often based off of time, off-site work is frequently performed, the type of financial reports needed can vary, and a client-centric approach to managing and presenting data is imperative. Finding a solution optimized for the way your engineering company works can make a big difference in leveraging cost-savings and growth from your software investment.

Accounting software packages designed for engineering firms offer a full range of financial management tools. Accounting features include the ability to print checks, pay bills, track expenses, manage payroll, create orders and invoices, manage receivables, establish budgets, perform bank reconciliations, and create top level financial reports.

Accounting for Time and Labor

Time and billing and project management are two examples of modules that engineering companies often require. One of the unique things for engineering firms is that there may also be a need for tools such as a work order management module or job costing. Which system will work the best for you depends mostly on the type of work you perform. A time and billing modules provide a way to track time spent working for clients. A time and billing module will support time-tracking where entries can be assigned to specific clients or projects, as well as marked billable or non-billable. Time and billing is typically the easiest way to bill for work that is primarily based off of time. Summary views in time and billing applications help service businesses analyze the work they've performed on particular projects. Basic expense tracking capabilities provide a method for charging incidental costs back to the client. A job costing module will also track labor, but it provides additionally capabilities for tracking things like equipment use, subcontractor usage, and materials. It's important to note that most job cost modules do not create invoices within the application as time and billing modules do. (A separate invoicing module is usually required with job costing.)

Tools that Help Put the Customer First

Engineering firms also often work directly with their clients, rather than simply for the customer. Additionally, an engineering oriented company will usually have clients within specific local geographies--whereas manufacturers, distributors, and even retailers with online presences may work with clients across a wider geography. Both of these reasons contribute to the importance of increased sensitivity toward a very client-centric approach. Tools that help improve client relations, such as customer relationship management (CRM) systems are critical. An integrated CRM package can provide comprehensive information on customers and prospects for sales, marketing, and customer service.

Accounting on a Project or Job Basis

As engineers perform work on a project basis, there need to be tools designed specifically to provide insight into the profitability of jobs. Further, clients often expect detailed reports on the work that their providers have completed. The ability to create reports that easily bring together relevant data for customers in easy to read forms can be a big boost in increasing customer satisfaction and promoting client retention.