Introduction

‍An expanding electrical contractor, aiming to diversify into various areas of their industry, faced significant operational hurdles due to improperly configured accounting software. Despite investing heavily in Sage 300 Timberline, the system’s inefficiencies led to outdated financial reports, affecting decisions at all organizational levels.

Challenges

‍The electrical contractor managed three separate entities under one accounting system, which struggled under the load of increased complexity. Financial reports lagged six months behind, causing frustration and concern among owners, auditors, surety providers, and bankers. This systemic failure threatened the contractor’s financial integrity and operational efficiency.

Solution Implemented

‍RedHammer intervened with a comprehensive strategy to overhaul their financial systems:

• Software Reconfiguration: The team reconfigured Sage 300 Timberline to suit the specific needs of multiple entities.
• Standardization Procedures: Implemented uniform processes across all entities to ensure consistency and accuracy.
• Paperless Accounts Payable: Introduced a paperless AP approval system to streamline processes.
• Staff Training and Reallocation: Provided essential training to the staff and reallocated tasks for optimal workflow.
• Regular Financial Reviews: Established weekly job cost meetings to maintain financial oversight and ensure timely data entry and reconciliation.

Results

‍The transformation led to substantial operational improvements:

• Reduced Overhead Costs: Achieved a 23% reduction in accounting-related overhead.
• Timely Financial Reporting: Monthly on-time delivery of accurate financial statements for all entities.
• Improved Decision Making: Management now receives timely job cost information, enhancing operational decision-making capabilities.

Conclusion

‍This case illustrates the critical importance of right software implementation in construction accounting. With RedHammer’s help, the contractor not only fixed their immediate software issues but also enhanced their overall business operations.

Call to Action

‍Facing similar challenges with your accounting software? Contact RedHammer to discover how our tailored software solutions can improve your business efficiency and financial accuracy.