Businesses operating in the AEC industry are held to strict standards and compliance regulations in all aspects of operations, including bookkeeping and accounting. Engineering firms are required to maintain financial records that are based on the accrual accounting method and are aligned with the generally accepted accounting principles (GAAP). That said, some engineering firms already have the IT resources necessary to host an on-premise solution and they enjoy the increased control it provides them over the SQL database. When contracting with government agencies, such as the Department of Transportation or the Department of Defense, it’s very important to ensure every project meets a particular set of regulations.

Software can simplify regulatory compliance by providing robust reporting tools that can show time and expense tracking by employee, transaction histories and more. The system should be able to meet the different billing needs of an engineering firm, billing by hour or by project and tracking employee time. It should also let you track your billable and non-billable resources to maximize cost recovery. In this guide, we’ll show you how engineering accounting software vendors are optimizing the workflows of businesses like yours.

Turn receipts into data for tax time ✨

To keep your engineering firm’s bookkeeping records organized and maintained, consider using cloud-based solutions and workflow automation. These tools can streamline processes, reduce errors, and improve collaboration, ultimately saving you time and money. Improving efficiency and outsourcing solutions can alleviate common challenges such as data accuracy and time management. With cloud-based bookkeeping software, you can access your financial information from anywhere, at any time. This will allow you to keep track of your expenses, income, and cash flow in real-time. Additionally, cloud-based options offer the advantage of automatic backups, so you don’t have to worry about losing your data.

These prices may have changed, so it’s best to check Intuit’s website for current pricing. I do not have information on specific versions of QuickBooks beyond my last knowledge Accounting For Engineering Firms update in September 2021. QuickBooks is still widely used, but for larger or more complex businesses, it may not meet all their needs, leading them to explore other options.

What are some common challenges faced by engineering firms in bookkeeping, and how can they be addressed?

Specialized accounting tools designed for the unique way engineering firms execute and bill projects enable maximizing profitability. Solutions like QuickBooks Online, NetSuite, and Sage 300 CRE provide capabilities aligned with engineering operational workflows. More lightweight platforms like FreshBooks and JobProgress offer excellent value. Any engineering business should adopt accounting software tailored for project costing and job cost needs. Understanding the basics of bookkeeping is paramount for engineering firms to effectively manage their finances and make informed business decisions.

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Cash Flow Best Practices For Engineering Firms

Outsourced CFO services can be extremely helpful in engineering firms that lack the guidance and experience of an in-house CFO. They can also be helpful to firms with an in-house CFO who are facing new challenges, undergoing a transformation, or growing rapidly. If you find yourself basing leadership decisions on your gut feeling and instincts alone, then you might be missing out on opportunities, running headlong into problems, or making big mistakes. A well-rounded bookkeeping and accounting team should consist of a bookkeeper, a staff accountant, and a controller. The respective average salaries for these employees (not including additional employee costs such as benefits, insurance, or PTO) ring in at $43,857, $61,663, and $250,871. Our strength is in the unique management-based approach we apply to the audit, review or compilation of financial statements.