If you’re planning to deploy a new ERP system and you’ve opted for SAP Business One then congratulations, you’ve made a good decision. But don’t pat yourself on the back just yet. The next stage of the process is implementation – and the stakes are high.
Engineering services companies need a robust and efficient job costing tool. Too often, their existing software is incapable of meeting this requirement. They rely on a combination of accountancy software, project management applications and spreadsheets that don’t share data with each other, and therefore cannot provide the visibility needed to cost jobs accurately. For these businesses, being able to monitor the profitability of each project as it progresses can seem like a distant dream. But it doesn’t have to be…
Almost every company can say their always busy, but not many of them generate the kind of profits they’d like to. In an industry like engineering services, it can seem the conveyor belt of contracts and projects is never-ending and there’s barely enough time to fit it all in, but your revenue figures never quite reflect that frantic level of activity.
Keeping a close eye on job profitability is essential for all project engineering and contract services companies, but it can be particularly challenging for those with many contracts and a large number of staff out in the field every day.
For companies that generate the majority of their revenue by servicing products or equipment, accurate job costing is absolutely vital for building a profitable and sustainable business.
It is universally acknowledged that a business cannot succeed – i.e. grow – without an accurate picture of how much it costs to serve its customers. Despite this understanding, many companies still neglect the process of job costing.
As technology evolves, so do data systems. New architecture means they are now smaller and more efficient. Soon, your legacy system will be obsolete because it simply will not be able to keep up. And businesses need to update and adapt to changes – mobile and e-commerce, for example – so they are not overwhelmed and by-passed.
