Most businesses would agree that effectively managing projects and finances is critically important, yet incredibly challenging.
This comprehensive review delves into the best project accounting software solutions available, providing an in-depth comparison across key criteria to identify the top recommendations.
You'll discover the purpose and key benefits of project accounting systems, review features of leading options like Microsoft Dynamics GP, NetSuite OpenAir, Sage Intacct, Deltek Ajera, and QuickBooks Online Plus, evaluate them across crucial evaluation metrics for selection like budgeting, billing, resource management, reporting, and ease of use, and see clear conclusions and advice to help you make the right software choice for your business needs.
Introduction to Project Accounting Software
Project accounting software is purpose-built to manage all financial aspects of projects, providing enhanced visibility and control compared to traditional accounting systems. As projects become increasingly important for business growth, specialized software is needed to track project budgets, expenses, billing, and profitability.
What is Project Accounting Software
Project accounting systems are designed for professional services, construction, IT, and other project-driven companies. Key features include:
- Real-time tracking of project budget vs. actuals
- Automated client billing based on milestones or time & materials
- Cost control through expense allocation and reporting
- Detailed visibility into project, department, and organization profitability
By centralizing all project financials, these systems reduce administrative work and minimize accounting errors. Managers gain greater control and insight to make data-driven decisions that boost margins.
Key Benefits for Businesses
Project accounting software delivers a range of benefits including:
- Enhanced budgeting through real-time tracking of budgets vs. actuals at both project and organization levels
- Streamlined billing through automated generation of invoices based on contracts
- Improved cost control by allocating expenses to correct projects and departments
- Better forecasting with drill-down reports to predict profitability
- Scalability to grow from a few projects to thousands seamlessly
By leveraging these advantages, services businesses can improve productivity, increase project profitability, and make smarter business decisions.
Purpose and Scope of this Review
This comprehensive review will analyze the top 5 project accounting software tools on the market today based on:
- Core features - Budgeting, billing, reporting, integrations
- Ease of use - UI design, configuration, controls
- Customer support - Implementation assistance, training resources
- Pricing - One-time, monthly, scalability
The goal is to provide an independent and detailed assessment to help services businesses find the right solution to meet their unique needs and improve project success.
What is project accounting software?
Project accounting software is designed to help project-based businesses manage their finances on a per-project basis. It is particularly useful for professional services firms, construction companies, creative agencies, and other organizations that deliver client projects.
Rather than tracking all financials at the company level, project accounting software allows you to:
- Create project-specific budgets
- Assign employees, tasks, and costs to individual projects
- Bill clients and track project revenue
- Analyze profitability by project
This gives project managers, controllers, and executives visibility into the true costs, resources, and health of each engagement a business takes on.
Integrating project accounting into your existing systems and workflows can help dramatically improve insights into your business's performance. Leading solutions connect to popular accounting platforms and PSA tools to seamlessly share data across systems. This unifies project and financial details for accurate forecasting, reporting, and decision making.
With the right project accounting software in place, project-focused businesses can gain the visibility and control they need to maximize profitability over both the short and long-term.
sbb-itb-beb59a9
Comparison of Leading Project Accounting Platforms
Selecting the right project accounting software is crucial for efficiently managing project finances, ensuring timely billing and revenue recognition, and gaining insights into profitability. This section compares the top 5 leading options based on key criteria:
Microsoft Dynamics GP
Microsoft Dynamics GP offers robust capabilities for project-oriented businesses.
Strengths:
- Tight integration with other Microsoft products like Excel, Power BI, and Azure
- Flexible project budgeting and costing
- Automated revenue recognition and billing
- Customizable to industry-specific needs
Weaknesses:
- Requires expert implementation given complexity
- Expensive licensing model
- Not suitable for smaller businesses
Overall, Dynamics GP provides exceptional project financials and reporting but demands significant time and investment to deploy and tailor effectively.
NetSuite OpenAir
NetSuite OpenAir focuses heavily on project management with solid accounting support.
Strengths:
- Intuitive user interface for PM tasks
- Real-time project cost monitoring
- Automated timesheets and expenses
- Customizable reports and dashboards
Weaknesses:
- Integration with NetSuite ERP can be tricky
- Limited support for complex revenue recognition
- Light on dedicated project accounting features
OpenAir excels at project execution backed by financial visibility, but accounting teams may still need traditional software.
Sage Intacct
Sage Intacct delivers robust scalability for growing project-based businesses.
Strengths:
- True cloud construction with scalable architecture
- Tight integration with CRM and HCM systems
- Flexible dimensions for tracking projects
- Customizable dashboards and reporting
Weaknesses:
- Designed for broader financial use so light on project accounting
- Limited resource management capabilities
- Add-on modules can get pricey
Intacct gives project firms enterprise-grade accounting flexibility but remains lightweight regarding operational project management.
Deltek Ajera
Deltek Ajera focuses squarely on core project accounting needs for services firms.
Strengths:
- Specialized for professional services firms
- Handy pre-configured workflows
- Robust reporting with 80+ standard reports
- Advanced revenue recognition capabilities
Weaknesses:
- Outdated user interface and navigation
- Light on PM features beyond accounting
- Support for complex projects more limited
For mid-market project-based businesses seeking a specialty accounting system, Ajera hits the mark with domain expertise.
QuickBooks Online Plus
QuickBooks Online caters to smaller businesses with the Plus version adding more advanced project tracking.
Strengths:
- Intuitive interface with easy learning curve
- Great integration between modules
- Decent project tracking features for the price
- Handy self-service reporting
Weaknesses:
- Designed for main street, not larger enterprises
- Limited custom fields for projects
- Light on complex project accounting
- Add-ons raise the price
QuickBooks Online works well for smaller firms with straightforward project financials, but scales poorly to enterprise needs.
Key Evaluation Criteria for Selection
To determine the best project accounting software for your business, focus on these key areas during your software selection process.
Budgeting and Cost Tracking
When evaluating project accounting tools, assess the budgeting and cost tracking capabilities:
- Automated budget calculation based on project plans and resource rates
- Flexible cost allocation to split expenses across multiple projects
- Real-time budget vs actual reporting to monitor project financials
Prioritize solutions that provide robust and automatic budget management features to simplify financial oversight of your projects.
Billing and Revenue Recognition
Carefully review the billing and revenue components:
- Project invoicing functionality and templates
- Revenue recognition methods and automated milestone tracking
- Cash flow forecasts and management reports
Choose project accounting platforms that give you flexible options for billing clients and recognizing revenue for optimal cash flow control.
Resource Management
Examine how well each software option can:
- Plan project team members and roles
- Track employee/contractor utilization rates
- Allocate labor and expenses to projects
- Monitor all resource spending for accurate costing
Look for advanced resource planning and cost tracking capabilities that provide visibility into your project resources.
Reporting and Analytics
Verify that the tool offers:
- Real-time, customized reporting on all project financials
- Automated scheduling of reports to stakeholders
- Interactive dashboards with key project KPIs
- Data visualizations for actionable insights
Reporting and analytics should provide deep visibility into the performance of your projects and business.
Ease of Use
Consider usability factors like:
- Intuitive graphical interface for all user levels
- Flexible configuration options and workflows
- Minimal training requirements for adoption
- Available support and troubleshooting resources
Evaluate both functionality and user experience to ensure seamless adoption across your organization.
Conclusion and Recommendations
For small businesses, QuickBooks Online Plus strikes an optimal balance between user-friendliness and robust project accounting capabilities. Its intuitive interface coupled with customizable reporting and billing make QuickBooks Online Plus a leading choice for companies just entering the project accounting realm.
As organizations scale in size and complexity, platforms like Deltek Ajera and NetSuite OpenAir merit strong consideration given their enterprise-grade functionalities around resource planning, project costing and advanced analytics. Procurement teams would be prudent to include all project stakeholders when evaluating software options to ensure alignment with organizational requirements and use cases.
While no solution provides a one-size-fits-all approach, investing time upfront to properly evaluate accounting software against core business needs vastly improves the odds of a successful implementation and user adoption. Test driving platforms to experience the workflow firsthand can prove invaluable before committing to a long-term contract.
