If you’re involved in the world of architecture and project management, or hold a role at an architectural firm, you’ve probably noticed that standard accounting processes just won’t cut it for you. This is because unlike the duties of an average 9-5 job, the work that architects do are highly project-based, which vary in the amount of time it takes to complete. Therefore, it’s important for those in the architectural industry to utilize accounting practices that work best for the business and its timescales.
Given the time required to finish architectural projects, project accounting is an option highly worth consideration. Project accounting focuses on the details of each project and aims to drive success in shorter time frames than traditional financial quarters or periods. The nature of project accounting allows employees from top to bottom to take control of their projects and exemplify their financial responsibility.
1) Project accounting extends individual sets of financial statements and reports to each project that an architect works on. This empowers everyone involved in the process, including project managers and construction workers, to take matters into their own hands by efficiently managing time and money and holistically enhancing productivity and profitability across their company.
2) When employees are entrusted with financial management responsibilities, they are given the opportunity to strengthen their prioritization, budgeting, and judgment skills. And because project accounting is so intricate, it reflects the quality of work being done on any particular project, ultimately incentivizing employees to perform their tasks well.
3) Additionally, being able to analyze financial reports and financial information for individual projects in real-time is a great way for a business to organize and stay on top of bookkeeping. Doing so also paints a more accurate picture of cash flow, since all cash transactions coming in and payments going out can be individually tracked.
4) Keeping track of each project’s financial data is best recorded when at the forefront of your mind so that the details are not forgotten. Financial information can also be recorded in cloud-based accounting softwares, which provides the right tools to meet the needs of architectural businesses and their operational functions. As part of our accounting services, our accountants at Financial Optics can help you determine the best accounting software for your business, whether it be Quickbooks, Xero, FreeAgent, or other software systems.
5) Finally, taking a granular approach to accounting can reveal specific sources of both profit and problems. These insights can be acted upon to optimize opportunities for profitability and make changes to any problems or risks that emerge. While project accounting does require more frequent documentation of your financial information at different stages of each project, it’s a way more effective approach to accounting for architects.
If you’re wondering what the benefits of hiring an accountant to handle your accounting needs are, look no further. We get it — Project accounting can be a time-consuming, tedious, and extremely detailed process that can likely get in the way of the creative aspects of the industry.
Outsourcing your accounting needs to us can allow you to dedicate more time towards cultivating stronger team development across your departments, honing into the complexities that each project brings, and encouraging collaboration within your company.
On top of that, Financial Optics does not assume a one-size-fits-all approach to accounting services, especially for specialized industries. We prioritize your needs and build customized accounting strategies to help you access all of your necessary financial information while staying on top of your accounting game.
Our accounting services for architectural firms include:
- Cloud-based Bookkeeping
- Cash Flow Management
- Accounts Payable
- Accounts Receivable
- Financial Reporting
- Payroll Processing
- Periodic P&L Reports
- Employee Compensation Plans
- Virtual CFO and Business Advising