In the competitive world of real estate development, success hinges on efficient management and accurate financial reporting. Acumatica, a powerful accounting solution, provides a customizable financial platform that we have built upon. Our solution offers a range of features that can help commercial and residential real estate developers manage the many complex facets of their business.
In this article, we’ll explore 4 critical areas where real estate developers need a purpose-built software solution to facilitate growth:
1. Project Control – Project cost data and income activity are captured and coded, then posted to the General Ledger, letting you see real-time financial data as your project progresses.
2. Commitment Management – With the help of Acumatica, you can monitor costs, track subcontractor retainage, and avoid overpaying subcontractors and suppliers. Additionally, it tracks insurance certificates, warning you when coverage is about to expire.
3. Loan Draw – Track your equity in a project and enjoy automated, customizable reporting that makes loan preparation a snap, easily adapting to each lender’s specific requirements.
4. Project Reporting – Our unique forecasting algorithm provides the estimated completion cost at any point in the project lifecycle, helping you easily manage financial risk.
Let’s examine these areas more closely.
1. Project Control
One of the critical challenges for real estate developers is keeping a tight grip on project finances. Acumatica Real Estate Development Accounting automates the capture of project cost and income activity at the cost-code level, updating the general ledger in real-time. This streamlines accounting processes, reducing the burden on accountants and project managers.
2. Commitment Management
Managing contractual commitments, such as contracts and purchase orders, is vital for real estate developers. It helps ensure that both you and others live up to their obligations and avoid penalties. Acumatica Real Estate Development Accounting offers real-time updates on commitments, helping you control costs and prevent overpayments. It also keeps track of subcontractor retainage and monitors insurance certificate expirations, helping you ensure your projects are completed on time, on budget, and with minimal risk.
3. Loan Draw
Acumatica simplifies the complex process of project funding and cost tracking. It consolidates project costs and funding in one integrated solution, ensuring you can monitor both aspects efficiently. Plus, it accommodates lender-specific requirements by allowing you to relate your cost categories to their respective lender categories, streamlining the loan application process.
4. Project Reporting
Effective financial reporting is a cornerstone of successful real estate development. Acumatica Real Estate Development Accounting offers a comprehensive solution that spans financial management, project control, and office accounting. You have full control over how financial reporting is executed, unlike other solutions that lock you into their standard offerings. Whether you need detailed reports, consolidated financial statements, or owner positions in the portfolio, Acumatica’s reporting tools have you covered.
Additionally, Acumatica Real Estate Development Accounting provides configurable dashboards that help you visualize key financial data at a glance, in real time. Having that data – customized to the key performance indicators that matter most to you as a real estate developer– makes it possible to see changes and trends early on and take appropriate action to ensure the project stays on track.
As an example, the Project Variance Report offers a comprehensive view of budgets, commitments, costs, and more. It even includes lending status and capital contributions as funding sources, making it a one-stop solution for project tracking.
One unique feature of our solution is the ability to forecast the project cost at completion from any point in the project lifecycle. Even if the project is only 25% or 50% complete, you can work with an accurate estimate of total cost that will help you plan and mitigate risk.
Acumatica Real Estate Development Accounting– An Efficient and Effective Solution for Developers
Acumatica Real Estate Development Accounting solution provides real estate developers with a robust set of features designed to drive success. From streamlined project control and commitment management to efficient loan draw processes and tailored financial reporting, which empowers developers to make informed decisions and optimize their operations.
Acumatica Real Estate Development Accounting is a valuable tool that can help you achieve your goals effectively and efficiently. Contact us today for a demonstration, and learn how it can revolutionize your business!