Project accounting can help you track the progress of all the projects for a operational viability & financial feasibilities. It tracks all of financial components of a project such as estimates, budgets, costs, bookings, billing, advance received and everything in between. Project accounting is important for certain industries where work activity is performed on work to work basis since it allows to identify the profitability of project which further identify areas of cost & revenue of project that can reform.
Standard cloud accounting deals with the main course of the accounting for a company as a whole, and usually within a fixed time frame (i.e. quarterly or annually). Standard accounting tallies the total expenses, budgets, accounts payable, accounts receivable etc. across all projects within an organisation.
Project accounting monitors the financials of individual projects. It allows companies a closer look into their day-to-day financials of the ongoing projects, which in turn allows them to identify areas of their finances that can be optimised. It also allows them to identify trouble areas that could impact margins in that project and as well overall company’s financial targets.
Sectors in India where project accounting is widely used and is an important feature of accounting are -
We use the following popular accounting software to manage revenue and cost of a project: