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Why construction companies need to use Cloud ERP

Learn more about how Cloud ERP systems help fulfill the unique needs and challenges of the construction industry.

How to choose the right Cloud ERP solution for your business

Helping Construction Companies Adapt to Change

The construction industry is one of five industries driving the U.S. economy. As the population expands, construction projects are on the rise, keeping general contractors, subcontractors, home builders, and land developers busy managing costs, contracts, budgets, commitments, compliance, inventory, resources, and more, all while putting client expectations at the forefront.

Even with growth in the construction industry, the uncertainty between projects and industry pain points persist. Keeping to a projected budget and timeline in the face of supply chain disruptions, labor shortages, rising material prices, and other pandemic-related challenges is no easy feat.

How can construction companies flex with these ever-changing circumstances? A cloud ERP construction solution can help them achieve optimum adaptability.

Why Construction Companies Need to Use Cloud ERP

ERP can help managing Resources and Timelines in Construction

Though the construction industry has a reputation for lagging behind in technology adoption, JLL’s report, The State of Construction Tech: 2020, says the pandemic has pushed construction companies to adopt technology faster than ever. Many have implemented industry-specific, cloud-based ERP systems to efficiently manage their resources and timelines.

A cloud ERP solution connects separate business management systems and organizes data in one place. This centralized database with integrated business applications—including CRM, financials, project accounting, inventory management, and more—is accessible by every employee (with appropriate role-based permissions) from anywhere, at any time, on any web-enabled device. As a single source of truth, it helps streamline workflows, communication, and collaboration.

With industry-specific cloud ERP construction software, construction companies can easily gain insight into job costs and manage financials, materials, documentation (e.g., RFIs, daily reports, and change orders), and project information (e.g., tasks, employee time, profitability, etc.). Making grounded forecasts based on real-time data has also never been simpler.

"REMCAN is excited to start using the AP Artificial Intelligence invoice recognition. We’re processing well over 2,000 invoices a month, and the AP AI will allow us to be way more efficient."

Andrea Deakove, Project Lead

REMCAN Projects

Benefits of ERP software for the Construction Industry

Cloud ERP can provide construction companies with a number of benefits, including:

Increased efficiency: Cloud ERP can help construction companies streamline their operations and processes, leading to increased efficiency. For example, cloud ERP can automate tasks such as invoicing, payroll, and inventory management. This can free up employees to focus on more strategic tasks, such as bidding on new projects and managing customer relationships. At the same time, they have real-time access to data for making informed forecasts and business decisions.
Improved visibility: Cloud ERP can provide construction companies with a single source of truth for all of their data. This can help them to improve visibility into their operations and make better decisions. Cloud ERP can track project costs, track inventory levels, and generate reports on financial performance.
Automated workflows: Cloud ERP can automate many of the manual tasks involved in construction project management, freeing up employees to focus on more strategic work
Enhanced collaboration: Cloud ERP can make it easier for construction companies to collaborate with their team members, partners, and customers. This can help them to improve communication and coordination, which can lead to better project outcomes. It helps team members access project data in real time and collaborate on document
Improved communication – Mobile access for field teams increases productivity.
Seamless integration with third-party applications (e.g., Procore, ProEst, Prophix, and Assignar).

Overall, cloud ERP can provide construction companies with a number of benefits that can help them to improve their efficiency, visibility, collaboration, costs, and compliance.

Here are some additional specific reasons why construction companies need to use cloud ERP:

The construction industry is becoming increasingly complex. Cloud ERP can help construction companies to manage this complexity by providing them with a single platform to track all of their data and processes.
The construction industry is becoming increasingly mobile. Cloud ERP can help construction companies to stay connected with their employees and partners, even when they are not in the office.
The construction industry is becoming increasingly data-driven. Cloud ERP can help construction companies to make better decisions by providing them with access to real-time data and analytics.

Choosing a Cloud ERP System for Your Organization

Any construction company that invests in cloud ERP construction software will enjoy the preceding advantages. However, the company must do its due diligence.

Choosing the right construction software for your business involves ERP research, ERP evaluation, and ERP selection, and Acumatica’s complimentary Construction Management ERP Evaluation Checklist is a great place to start. It’s a comparative tool that highlights five key evaluation categories.

Productivity
Functionality
Technology
Value
Risk

Construction companies should also confirm that the construction ERP software in which they are interested can be customized to fit their specific needs. As the evaluation checklist notes,

“The financial management system you select today will affect the way your construction business runs for the next 5 to 10 years. You need a system that helps your staff be more productive and maintain outstanding customer service.”

How Acumatica Can Help

The Acumatica Construction Edition, designed specifically for construction companies, was born in the cloud. Front office, back office, and job site personnel have access to a single solution that seamlessly integrates Acumatica’s core applications (e.g., Sales, Payroll, Financials, Marketing, CRM, Inventory, and Project Accounting) with specialized, third-party applications. Data syncs in real-time across programs and devices, giving every team member a single source of truth. Job costing, change management, budgets, commitments, compliance, and billing information are stored in one central location and are available 24/7 from any web-enabled device. The solution allows managing every corner of your construction business and operations with best-in-class financials, robust project management, native payroll, change management, embedded CRM, and flexible cross-industry functionality.

With the construction industry predicting continued growth, Acumatica’s agile, user friendly, and mobile cloud ERP construction solution is exactly what construction companies need to stay ahead of the competition.

Contact our team today with any questions about Acumatica’s cloud ERP software and/or to set up a demonstration.

Featured resources

Migration Guide

Construction ERP: Feature Comparison

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General Checklist

Construction Accounting Software Checklist

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