Making the Most of Your Construction Accounting Software Payroll Process By Deneb Construction Accounting Software

Today’s payroll process seems be more complicated than ever. And unfortunately, it’s not an area of your business that can be overly forgiving of errors. Between wage, fringe and tax rates; union stipulations; certified payroll; and a host of additional variables, maintaining efficiency and accuracy can be a challenge. Construction Accounting Software Here are some suggestions to help manage and facilitate this critical task.

1.      Be software savvy

Use a construction accounting software system that is exclusive to the construction industry and that is fully integrated. What that means is that the various platforms of your system, i.e. payroll and general ledger, will communicate with each other. For maximum efficiency, payroll should integrate, in real time, with job cost, equipment control, work order, general ledger and bank reconciliation.  

 

2.      Get educated

Fringes, certified payroll, taxes (FICA, Federal, State, local), deductions including 401K, child support, and garnishments - know what they are and their place in the payroll process. 

 

3.      Stop writing paper payroll checks

Switch to direct deposit. Employees will receive their pay much sooner and the electronic transfer of funds will eliminate the cost of writing and mailing checks.

 

4.      Streamline functions

By integrating job cost with payroll, you’ll enjoy more ease and accuracy with scheduling, estimating, budgeting, and reporting.

Check for accuracy

You’ve probably heard the term “garbage in – garbage out”  -  meaning whatever information you put into your system is going to determine the accuracy of what will be coming out. It usually takes less time to make sure the information you are entering is accurate than trying to diagnose errors later in the process. Make sure work hours, classifications, overtime, and with holdings are correct. Utilize a system or process to validate your data prior to entry.

Know what your construction accounting software payroll feature can do. Take advantage of all facets of your payroll system such as creating W2s and running reports. In some systems, both can be produced with just a click of button.

 

It’s easy to only think about payroll when something goes wrong, but it’s a critical administrative function that deserves to be in the spotlight. By making the payroll process more efficient and accurate, construction companies can improve compliance, limit risk, and set the stage for growth.