| Better Next Year, No.1: Avoid Spreadsheet Dependency |
|
|
| Written by Fred Ode | |
|
Page 2 of 2
Spreadsheet Dependence and Off-the-Shelf Software Contractors using inexpensive generic applications, such as small business accounting software, also tend to suffer from spreadsheet sprawl. Why? Because these off-the-shelf applications do not offer contractors enough flexibility or formatting capabilities for job costing or specialized reporting. Owners complain they cannot see their data the way they need to see it. As a result, they spend even more time reentering and manually updating data into spreadsheets. Without the ability to integrate data between general ledger, job costing and other modules, for example, it becomes impossible to manipulate data and see numbers in different ways (such as aging reports by project manager, production reports by geographic region or financials by job). In exchange for greater reporting detail and flexibility, these contractors come to rely on a series of disparate worksheets that offer virtually no data validation or protection against errors. Database Software Outperforms Spreadsheets Spreadsheet software is great at performing complex calculations, linking to worksheets, performing ad hoc queries, what-if scenarios and so on. It has serious drawbacks, however, when used for data storage, or retrieving data from beyond the simplest of queries or accommodating multiple users. Adding large amounts of data to spreadsheets can quickly deteriorate the integrity and usability of spreadsheets. In contrast, most job cost accounting programs, as well as other construction-specific applications, are built upon secure databases, designed to handle large amounts of data and multiple users. These applications can easily handle millions of records, and reports can be shared among users without concern for tampering or unauthorized use. In general, the larger the size of your data or the more challenging it is to organize, the more likely you are to need an integrated construction-specific application built upon a database management system. Think of it as the storage place where all company data can be seen all at once and examined in hundreds of ways. Each transaction is entered once and flows to other areas or modules where appropriate. In addition, date-sensitive applications tie every transaction to their entry date so that reports can be run for any time period—monthly, weekly, daily...or even prior years in the past. Good construction-specific software also features hundreds of standard construction accounting reports, as well as customizable report-writers, so that contractors can recreate their spreadsheet reports without reentering data. And in those instances where contractors need to manipulate or extrapolate their data outside the system, many good construction-specific systems provide seamless interface with third party report writers or spreadsheet applications. Have You Outgrown Your Spreadsheets? Spreadsheets are flexible, easy-to-use and can be found on nearly every office PC. As "the" tool that revolutionized desktop computing, there will always be a role for spreadsheets in construction. In fact, for the small contractor or start-up company, these desktop applications may be the only technology required for their financial and reporting needs. However, as contractors grow in size and project volume, there will come a time when the business can no longer rely on spreadsheets for collecting, consolidating, reporting and analyzing data. As a tool for estimating, job costing and financial reporting, spreadsheet technology has simply outlived its usefulness. Perhaps the greatest liability appears to be the hidden cost of wasting valuable resources; spreadsheets are clearly an inefficient way of handling data. Fortunately, construction-specific software systems built upon powerful database engines now offer what spreadsheets don’t: A comprehensive data warehouse of up-to-date, accurate information and unlimited reporting possibilities. Fred Ode is the CEO/chairman of Foundation Software, developer of construction job cost accounting software called FOUNDATION for Windows. For further information on FOUNDATION for Windows, visit www.foundationsoft.com. Ode can be reached directly by phone at 800.246.0800. Comments (0)
 Write comment
|
