January 30, 2014

Presented by Olivia Roemer, CCIFP

Best Practices in Construction Accounting Software

San Diego International Airport

Bonding and Financing Program

http://www.teamtag.net/

TAG supports and strengthens your company’s accounting department and management with outsourced bookkeeping, controller, and CFO services.

Whether you are a CFO who could use a quality controller once a week, a controller who needs bookkeeping assistance, or an office manager looking for higher level finance and accounting oversight, TAG can fill the need.

From sales to implementation, training to consulting, TAG’s team of certified consultants work to improve your efficiency and reporting capabilities with the best accounting software for the building industry. TAG is an Authorized Reseller with a team of Certified Consultants for:

• Sage 300 Construction and Real Estate

• Sage 100 Contractor

• Sage Estimating

• Contractor V

Beyond the Numbers…

TAG provides valued financial and business resources & counsel for companies and individuals on the move.

Surety Bond ProgramThe objective of the San Diego Airport Bonding and Contract Financing Program is to assist San Diego small and emerging contractors in obtaining or increasing bonding and financing for Authority construction projects.

Topics of Discussion

• Key Components of Construction Software

• Key Components Considerations

• Which software is right for your organization?

• Should the key components integrate?

• Should software grow with your business?

• How much should your software cost?

• What is the “Cloud”?

San Diego County Regional Airport AuthorityBonding and Contract Financing Assistance Program

www.bondingprogram@san.org

Key Components of Construction Software

• Estimating– Historical data to confirm accurate estimating

• Project Management– Track compliance and/or scope changes

• Accounting– Produce accurate reports on a regular basis

• Security– Confident that your information is secure

Key Components Considerations

• Estimating– What level of detail do you need for your estimates?– Do you need an Excel spreadsheet or a multi-tiered database?– Are you bidding at a GC, subcontractor or mixed level?– What type of work are you bidding? (e.g. Private, Public, Government)– Do you need to keep track of historical data for future estimates?

• Project Management– Do you need to track costs related to bidding and preconstruction?– Do you need to track correspondence during the life of a bid and/or job?– Do you need to track compliance items?– What type of reporting is required by operations?– Does operations need access to this information in the field?

Key Components of Construction SoftwareOlivia Roemer, CCIFP – Sage 300 CRE Certified Consultant and Construction Accounting Expert.

www.teamtag.net

Key Components Considerations• Accounting

– Do you need to track multiple companies, locations and/or divisions in one database?

– Do you need to track subcontractor compliance items (e.g. prelims, lien waivers, insurance certificates, etc.)

– Do you need to track cost to budgets and/or commitments? Warned if exceeded?– Do you need to customize reports and/or inquiries?– Do you want a document management solution?

• Route invoices for approval?• Do you need all documents related to the job to be managed?

• Security– Do you need to restrict access based on

• Employee duties/roles?• Certain jobs and/or job types?• Company database?• Individual tasks?• Individual reporting?• GL structure?

– What level of detail do you need in security logs?

TAG presents at the San Diego AirportOlivia Roemer, CCIFP – Sage 300 CRE Certified Consultant and Construction Accounting Expert.

www.teamtag.net

Software Type Overview• Level 1

– QuickBooks– Peachtree

• Level 2– Sage 100 Contractor– Contractor V– Foundations– American Contractor– Computer Ease

• Level 3– Sage 300 Construction and Real Estate– Viewpoint– Dexter + Chaney– Maxwell– Coins

Estimating: Microsoft ExcelProject Management: Microsoft SharePoint

Estimating: ProEst / Microsoft ExcelProject Management: Prolog/Primavera

Estimating/Project Management: Modules

Software Type Overview• Level 4

– JD Edwards– SAP– Oracle

• Other Construction Software– Prolog– Primavera– ProEst

TAG is a Software Solution Provider for the Construction Industry

Which software is right for your organization?

QuickBooks• Small construction company• Easy to use by all skill levels• Basic job cost reporting• Some purchase order tracking• Entries can be changed with ease (Good & Bad)• Limited estimate entry and tracking • No integration with Estimating or Operations.• Static reporting available• Minimal security restrictions

Contractor VSimple, easy-to-use, fully-integrated job cost accounting software for the construction industry

Which software is right for your organization?

Contractor V• Small to mid size construction companies• User friendly interface• Multiple billing formats including Trade, Progress billing and AIA

formats• Can process Certified Payroll• Contains Subcontractor Management• Can assign costs to equipment• Can track insurances• Can track Purchase Orders

Sage 100 Contractor (formerly Sage Master Builder)

Which software is right for your organization?

Sage 100 Contractor• Customize dashboards with menus, desktops and work process

shortcuts• More than 1200 built in reports with report drill down to transaction

detail• Built in report writer• Schedules can be viewed by Gantt Charts, task grids or critical path• Many billing formats – including AIA, contract billing and T&M• Built-in alerts can send emails (e.g. when job exceeds budget)• Fully integrated with other Sage products (e.g. Sage ACT! and Sage

Construction Anywhere)

Sage 300 Construction and Real Estate

Which software is right for your organization?

Sage 300 Construction and Real Estate• Mid to large size construction companies.• Estimating, Project Management and Accounting software

integration.• Track estimates/budgets and commitments with ease.• Track subcontractor insurance, lien releases, certified payroll, etc.

and be notified when vendor is not in compliance.• Receive updated job cost reports while out in the field.• Automatically be notified when job and/or cost code is over budget• Remote time entry for payroll• Multi-level security available• Ability to create and modify reports and inquiries• Document management solution available

Which software is right for your organization?

Viewpoint• Mid to large size construction companies• Specialty for heavy highway construction – which bills in production

units• Can easily tie costs to production units• Contains HR module and Pre-Construction modules

Dexter + Chaney• Mid to large size construction companies• Have JAVA based version on the web• Robust Service Management and Equipment modules• Forces GL accounts to cost types

Should the Key Concepts Integrate?

YES!!!• A good construction software package should work with all areas of

your business, from start to finish.• Estimating

– Entering job budgets/estimates or having them import directly from the estimator are vital to accurate job costing and future data analysis.

• Project Management– Track RFIs, submittals, transmittals and daily reports in one central location.– Track change requests and/or change orders within your software for accurate

billing and job cost reporting.

• Accounting– Tracking subcontractor contracts and supplier purchase orders help you stay

within budget and avoid possible overpayments and price discrepancies.

• Security– Multi-level user restrictions and data access

Olivia Roemer, CCIFP – TAG Certified ConsultantOlivia is a Controller who specializes in Accounting and Software Consulting for the Construction Industry. As a CCIFP and Sage 300 CRE Certified Consultant, she has helped businesses learn to effectively use their construction accounting software to make critical business decisions.

YES!!!• Can your current software grow with you?• As you become more sophisticated in your business approach, so

should your software.• The software should be able to easily scale up when you do.• It should have scalable security so only the right people have

information to the right areas.• Profit can be won and lost in the field so you need the right

information at a moments notice.• It should be intuitive to use, so training new employees isn’t a

daunting task.

Should Software Grow With Your Business?

• Construction software packages can run between $500-$50,000.• Computer hardware can run between $1,000-$100,000.• What is included in these price ranges:

– Software• Software package of choice• Software licenses• Software service and maintenance plans• Implementation Cost• Potential ongoing customization and/or consulting• Other 3rd party software applications

– Hardware• Server(s)• Workstation(s)• Licensing• Printer(s)• Network Equipment• Ongoing IT maintenance costs• External peripherals

How Much Should Your Software Cost?

• Considerations– Estimating

• Staffing (Do you plan on growing?)• Job Types (Private, Public Works, Government)• Reporting Needs (Internal and external)

– Project Management• Staffing (Do you plan on growing?)• Job Types (Private, Public Works, Government)• Reporting Needs (Internal and external)

– Accounting• Staffing (Do you plan on growing?)• Job Types (Private, Public Works, Government)• Reporting Needs (Internal and external)• Outsourced work (PayChex, ADP, Etc)

– Security• Staffing (Do you plan on growing?)• Reporting Needs (Internal and external)

Software Costs Are Relative

Construction Companies are Moving to the Cloud

What is Cloud Computing?

• “Cloud” is a set of hardware, networks, storage, services and interfaces that combine to deliver different aspects of computing as a “service”. – Services include software, infrastructure and storage over the

internet

• There are 3 models of cloud services that can be provided by a company– IaaS (Infrastructure as a Service)– PaaS (Platform as a Service)– SaaS (Software as a Service)

• These models then lead to the “Cloud Clients”

Cloud Models• IaaS (Infrastructure as a Service)

– The most basic cloud environment– The provider offers storage and computer resources that

developers and organizations can use– Often times provided as virtual machines (or combo of virtual in

physical)– Ability to scale services up and down according to user needs– User typically will install their own OS and applications and then

maintain updates and new installs– Examples: Amazon Elastic Compute Cloud, Azure Services

Platform, Google Compute Engine, HP Cloud

Cloud Models• PaaS (Platform as a Service)

– The provider builds an environment that offers “black box services” where developers can build applications.

– Typically the provider will include the operating systems, web server, and possibly the programming language environments or developer tools

– This service allows developers to develop and run their software without worrying about the cost to build the environment they need

– Sometimes providers will build environments that will grow automatically to match the demand of the developers

– Examples: Force.com, Windows Azure Cloud Services, Google App Engine

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Cloud Models• SaaS (Software as a Service)

– The provider builds the environment and hosts software and/or databases for the end user

– Provider manages the infrastructure and platforms that run the applications.

– Typically there may be many virtual machines built to handle the load and load balancing is handled seamlessly in the background

– Providers typically price the applications/environment on a pay-per-use basis or subscription basis

• Typically monthly or yearly flat fee per user– User just connects via cloud client and uses system– Examples: Google Apps, Microsoft Office 365– Only downside is data is stored on provider’s server

Surety Bond Program at San Diego AirportConstruction Accounting Software Workshop Presented by TAG

www.teamtag.net

Cloud Models• Cloud Clients

– Users access through networked client devices– Users often use web browsers – Users seldom need specific software loaded– Minimal hardware requirements– Examples: Desktop computers, laptops, tablets or smartphones

San Diego AirportBonding & Contract Financing Assistance Program

Cloud Characteristics• What Makes Clouds Attractive?

– Elasticity and scalability• The resources allocated can grow or shrink based on the company’s needs• This growth may come from the number of users or from the software

requirements

– Self-service• Users can request changes to the environment (faster processor, more

memory, more storage)

– Standardized interfaces• What the user sees (application interfaces) is the same for all users. Keeps

customization costs low if basic layouts are all that is required

– Billing and service usage metering• Pay as you go – the usages is metered and pay for what you use

Cloud Issues/Concerns• Providers and Business Considerations

– Cloud security• Identity management – manage personal identity info for proper access to

materials• Detection and forensics – ability to separate legal from illegal activity• Encryption – ability to protect your information

– Cloud manageability• Assets as well as the quality of service must be managed

– Cloud standards• Standards provided to company ensures that users can take tools,

applications, images and data to other cloud environments without having to rework anything

– Cloud governance and compliance• Who is responsible and what are the policies and procedures surrounding

these responsibilities

Maria A. Quiroz bondingprogram@san.orgSan Diego Airport Authority Bonding and Contract Financing Assistance Program.

Cloud Integration & 4 Keys• Keys Components of Software

– Most businesses will fall into the SaaS model for their Cloud needs

– This is beneficial to them because they can do all the work they need in the first three components in any environment – whether it be in the office or out in the field during meetings

– The key component to consider is security• Who’s going to have access to the data?• Who has access to modify security? Someone in a branch office, someone

in the corporate office, someone at the SaaS provider level?• Where’s all the data stored and how much data can they store before they

run out of room?• With the two biggest concerns being increased security needs as well as data

storage, when do the costs get prohibitively expensive?

Advantages to the Cloud

• User-Level Efficiency– Open lines of communication between the field and office staff– Full featured, familiar program with no learning curve– See updates to data in real-time

• Company Wide Efficiency– Access from anywhere by multiple users– Multiple device compatibility– Easy access for outside consultants and professionals– Single access point to update

• TAG is a dedicated Value-Added Reseller (VAR), developer and provider with certified experts on staff to help select, customize, implement, train and support business management software systems with customers in Southern California and across the United States.

• From accounting, Cloud ERP, SaaS, CRM, HRMS, project management, estimating, job costing, asset management, eCommerce solutions and more, TAG will find the right online, cloud, hosted, or on-premise software solution for your company size, industry and specific needs.

• TAG’s services are designed to guarantee your successful transition to NetSuite, the world’s #1 cloud business management suite and Sage business management software, including Sage 100 ERP (formerly Sage ERP MAS 90 and 200), JobOps, Sage CRM, Sage HRMS, Sage 100 Contractor (formerly Sage Master Builder), Sage 300 Construction and Real Estate (formerly Sage Timberline Office), Sage Estimating, Sage Construction Anywhere and Contractor V Plus.

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