Why should you use Construction ERP Software to plan your budget schedules?

Budgeting is the process of evaluating how much money has gone out and how much has come in over some time. Its one of the parameters used to know the status of the business organization. So budgeting naturally becomes essential to analyze the current situation and the future trajectory.

A strong and effective budgeting mechanism enables the organization to calculate debt, plan an investment, seize a merger proposition, and many more. The process of budgeting may differ from one organization to the other as per the size, nature, and workforce of the organization.

In this context, it becomes clear that having an automated budgeting system in place is vital for the construction industry to thrive in the present-day cut-throat competitive environment.

What is the role of ERP software in making budgeting and estimation decisions?

An ERP software for construction has a multifaceted usage in helping a contractor plan his/her budget for a specific project over some time. So one should ask who is responsible for planning the account in a construction company. Who is responsible???

Planning Head: Responsible for performing complicated budgeting & estimation works. A Construction ERP Software gives him/her the centralized dashboard that allows 24×7 real-time visibility and control over the entire budget division. 

Planning Executive: Using the ERP can create digital project designs, upload BOQ (bill of quantity), and manage the change transitions in real-time at a single platform. 

Regional Heads: Can approve and deny bills, cross-verify financial statements, revise labor bills, sub-contractor bills, client bills, etc. 

In simple terms, applying a construction ERP in the construction budgeting process is to simplify the work by digitizing and automating the entire process. 

Other benefits of Construction Budgeting & Estimation Software:

1. Track fund usage across divisions, Projects, and Regions
2. Real-time visibility over Accounts Payable and Receivable with Ageing analysis
3. Refer Cash flow history and Future forecast of fund flow
4. Manage salary outgo, Admin costs, and Overheads for each project in a single platform
5. Know the status for Bank Guarantees / Letter of Credit.

How is Digitization carried out?

Is Digitization beneficial?

The frequent criticism of having a nondigitized budgeting system is that it is time-consuming. Nobody wants that, especially when the contractors are reporting that executing a project within the schedule to be the biggest challenge they are currently facing. Digitization takes away the errors and guesswork that is associated with the budget planning process. Digitization gives a clear road-map and sets the trajectory by analyzing multiple factors, and no guesswork is encouraged. Digitization makes rectification of errors easy.

Legal compliances like taxation, cess, GST, e-invoice, can all be integrated into one platform for ease of access and clarity as all the related works can be carried out in real-time. 

Data entry becomes more precise as it’s all computerized: no discrepancies, and enhanced transparency in the entire budgeting workflow cycle. Take a free DEMO of Tactive Construction Budgeting & Estimation Software for a real-time experience.