Accurate and timely financial reporting is essential in construction. Yet, many companies find themselves limited by the native ERP reporting tools they rely on. Often designed for broader industries, these tools fall short of providing the dynamic, construction-specific insights businesses need to thrive. This is where a construction financial intelligence solution like ProNovos comes in—a superior choice that transforms your existing ERP system into a powerful, construction-focused financial reporting and forecasting machine tailored to meet the unique demands of your industry.
Published August 26, 2024 . 10 mins read
Unlock the Full Potential of Your ERP Data: A Construction-Specific Solution
Business
Not Getting Enough Out of Your Native ERP Reporting?
If you’re experiencing frustration with static reports and lackluster, non-interactive data visualizations, you’re not alone. Many construction businesses find that while their ERP systems offer the basics and are suitable for collecting data, they must rely on cumbersome spreadsheets to create financial reports. These spreadsheets, though functional, come with limitations and drawbacks that can hinder your ability to make informed decisions and get quicker results on tasks such as job cost updates, getting billings out the door, and month-end closeout. What’s needed is a solution tailored to the construction industry—one that overcomes the limitations of tools like Power BI and unlocks the full potential of your ERP data.
Limitation of Traditional ERP Systems
Traditional ERP systems, while robust, often lack strong financial intelligence capabilities, particularly when it comes to the unique needs of the construction industry. Common shortcomings include:
Limited Customization and Scalability
Many ERP systems fall short in offering the flexibility required to meet the unique demands of construction businesses. They often can’t accommodate the customization of key performance indicators (KPIs) tailored to your specific business type or scale to handle the increased data load, particularly for long-duration projects. This limitation can hinder your ability to gain meaningful insights and adapt as your business grows.
Not Construction-Specific
Generic ERP systems often lack the specialized features and insights crucial for managing the unique financial complexities of construction companies. Construction accounting and reporting involve distinct practices, such as percentage of completion, accrual accounting methods, and revenue recognition, which generic systems don’t adequately support. Moreover, they typically need help to incorporate critical elements like retention, overbillings, and underbillings. These systems also fall short in providing the flexibility to update job cost forecasts in various ways or accurately project revenue, making it challenging to maintain financial accuracy and control in construction projects.
Poor Integration with Other Tools
When ERP systems lack seamless integration with other key tools, your financial data becomes siloed, leading to inefficiencies and missed opportunities. An interconnected technology stack ensures that everyone in your organization is working with the same up-to-date information, reducing errors and delays. This shift away from reliance on outdated spreadsheets enables more accurate decision-making, enhances collaboration, and ultimately drives better project outcomes.
Signs Your Construction Business Needs to Elevate Its Financial Reporting
As your construction business grows, so do the demands on your financial reporting systems. Here are some key indicators that your current ERP reporting may no longer be sufficient:
Inaccurate Financial Reporting and Forecasting
If your financial reports aren’t providing a clear and accurate picture of your company’s performance, it’s a sign that your ERP system is struggling to keep up.
Inefficiencies and Delays in Project Management
When project managers lack access to real-time financial data, it leads to delays and inefficiencies that can derail project schedules and put budgets at risk.
Over-Reliance on Spreadsheets
If your team still heavily relies on Excel and manual spreadsheets to supplement your ERP’s reporting, it’s a clear sign that your current system lacks the dynamic capabilities needed for today’s construction environment.
Difficulty in Scaling Operations
As your business grows, the limitations of your ERP system become increasingly evident. Your project team may struggle to access crucial information like missing billings, timely updates on change order status, and the ability to manage the complexities of construction project lifecycles. These gaps can lead to unreliable forecasts and hinder your ability to scale efficiently and effectively.
The Solution
ProNovos is designed with the needs of construction businesses in mind, offering tailored solutions for various roles within your organization:
For CFOs or Financial Managers
ProNovos allows you to project short-term cash flow, ensuring proper cash inflows and outflows. You can anticipate near-term decisions, avoid mistakes, and perform variance analysis on revenue forecasts. Plus, you can monitor project financial performance and job cost forecasts, helping project managers keep their projects on schedule and within budget.
For Project Managers
Updating job cost forecasts and checking for missed billings is a breeze with ProNovos. The platform provides the insights needed to keep projects on track.
For Executives
ProNovos empowers executives to monitor and benchmark company performance KPIs, analyze WIP reports to proactively monitor profit margins, and spot under-billings before they become issues—giving you the confidence to send reports to bonding companies or bankers.
Connecting the Field and Office
Project managers in construction are tasked with building successful projects, and to do that effectively, they need tools that streamline their work and provide clear insights. However, traditional ERP reporting systems aren’t built with project managers in mind, often failing to deliver the real-time, actionable data they need. ProNovos bridges the gap between the field and office by making vital financial metrics—like profit margins, billings, change order impacts, and earned revenue—easily accessible and digestible. This reduces reliance on cumbersome Excel spreadsheets, enabling more efficient job cost forecasting and routine project reviews. By simplifying these processes, ProNovos empowers project managers to focus on what they do best—keeping projects on schedule, within budget, and ultimately, delivering successful outcomes.
Easy Implementation
Implementing ProNovos is straightforward and designed to maximize your ROI:
Quick Sync of Your ERP Data
Our seamless integration ensures that your existing ERP data is easily synced with ProNovos so you can benefit immediately.
Thorough Onboarding for Maximum Usage
We provide comprehensive onboarding to ensure your team knows how to make the most of ProNovos from day one.
Dedicated Client Support
Our support team is always on hand to provide quick answers and ensure you get the most out of the platform.
Scalable Growth
As your business grows, so does ProNovos—on your terms. Add new users when needed, and only pay for what you use.
ProNovos isn’t just an analytics or reporting tool—it’s a financial intelligence solution that elevates your financial reporting and forecasting, enhances your existing ERP system, and helps your construction business thrive.
Discover how ProNovos can help you shift from reactive to proactive financial management. Schedule a time with a solution advisor to learn more about what ProNovos can do.
