Current Accounting

Five Reasons You Need Project-Based Accounting Help

As we head into the New Year, now is the perfect time to either set things up so that you can maximize your write-offs come tax time,

As we head into the New Year, now is the perfect time to either set things up so that you can maximize your write-offs come tax time, or to plan to take accountable steps for expansion after the holidays. There are many reasons hiring a project-based accountant can help – these are some of the most common.

What is Project-Based Accounting?

Standard accounting and project-based accounting are two separate things. Standard accounting involves tracking expenses and counting revenue, usually within a fixed timeframe such as monthly or quarterly. Project-based accounting is a way to monitor the financial activities that a company is pursuing at a specific time. There are many reasons that businesses can benefit from project-based accounting.

Reconcile Project Account Records

When you use project-based accounting, it measures daily revenues and expenses and provides real-time and current information about where the project stands at any given time. Therefore, you can use the information to adjust your practices accordingly for the best outcome along the way.

Provide a Comprehensive Overview of the Entire Project

If you structure project-based accounting practices properly, you can get a comprehensive overview of all aspects of a specific project, from materials to labor to any time delays that occur along the way. That means that leadership can make immediate and informed decisions on demand as needed.

Service Organizations Can Track Accurate Billing Information

For those who operate in the service sector, project-based accounting can help to track their customers’ data and billing as well as their own, so when the project ends they aren’t left trying to figure out invoicing and paying their own invoices.

Cloud-Based Project-Based Accounting

A major advantage of project-based accounting is that it can be available via the cloud. That means everyone gets the information they need on time, from anywhere. Cloud-based and project-based accounting means that many people can share information at the same time, so there isn’t just one gatekeeper to all the data everyone needs.

No Need to Hire Full-Time Accounting

Unlike traditional accounting services, project-based accounting only requires that you have accounting help when you need it and only pay for what you need. Unlike traditional accounting, if you don’t need full accounting services, project-based accounting has a beginning and ending point, which means lower overhead costs for your business or organization.

Project-based accounting differs from standard accounting in many ways. The main idea is that you don’t pay for services you don’t need, and you get more immediate information to make accurate decisions throughout the project timeline. At Current Accounting, we provide project-based accounting for our clients, customized to your needs and available on cloud technology. Contact us today to discuss how we can help with your project needs.