With a recent boom in technology in an industry that has traditionally been lagging behind the times, real estate development firms are starting to embrace technology to move projects forward with a higher degree of accuracy.
These software applications are categorized in only a couple of ways. Products that manage development but require the manual, double or triple entry of data from another source or department and applications that contain all the data in a single application with a single-entry point based on accurate general ledger accounting.
Real estate development management and financial accounting are different but very essential activities for any developer. But they must work together closely since the development outcome depends on the accounting quality and accuracy of the data.
With non-accounting-based applications, development management and financial accounting do not collaborate fully in most cases and create risk and inconsistencies in the data, reducing productivity for the entire organization.
Spreadsheets, like Excel, are simply applications utilized for organizing, analyzing, and storing data in which numbers and mathematical formulas can be applied. This works well to keep track of project costs but requires manual entry of the data leaving room for error at almost every entry, formula or revision.
Dashboard based applications provide development management teams the ability to view project data in a visual way, but in reality, that data needs to come from somewhere. It typically comes from a third-party application such as Excel or from the organizations accounting software such as Quickbooks.
To complicate things further, there is other business software functionality that is required for real estate developers that either has to come from additional applications or derived from manual processes.
As more systems and applications are introduced to the process, organizations run the risk of losing accuracy and overall productivity leaving room for error and ultimately increasing the complexity of all phases of the development process.
Developers that are dependent on these outdated siloed or manual productivity solutions such as Excel, Dropbox, SharePoint, local drive storage, archaic legacy solutions, etc. — often delivered projects past deadline and over budget. Meanwhile, developers that actively embraced technology delivered better overall performance (i.e., met deadlines and budgets).
Consensus says that the best way to run any organization is by utilizing the latest technology and having a state-of-the-art software solution appropriately created for its industry and purpose.
But until now, there haven’t been any effective solutions to this problem. The combination of multiple applications presents a significant operational hurdle for real estate developers. This is the conundrum developers have faced for many years.
Today, real estate developers need to embrace technology to enhance their accuracy, productivity, and overall profitability.
With new, state-of-the-art software solutions, developers can now have access to a complete business software solution including all the tools necessary for real estate development.
Acumatic Real Estate Development Accounting contains a full general ledger, AP/AR accounting application, plus project control, loan draw management, contract and commitment management, and more! It was created to provide one application that performs all the functions necessary on both sides of the business.
The fact is that technology based on financial accounting like Acumatica can take over many of the manual processes and combination of multiple disjointed systems developers have used in the past. It will reduce the bottlenecks in the current process and help manage risk and reduce errors.
The power of the Acumatica platform allows development management teams to communicate project statuses and data back and forth via a process that is updated in real-time. Providing accurate reporting, visual dashboards, and significantly reduced data entry at every step.
Plus, Acumatica features an open API (Application Programming Interface) that easily allows integration and additional extensions to meet your unique business needs.
To learn more about Acumatica Real Estate Development Accounting for your organization, Contact Us! We would love to chat about how it can help you and your team increase your data accuracy and organizational efficiency!
