The economic downturn has hit construction companies particularly hard, forcing contractors to make difficult decisions in order to cut costs. The common approach is to reduce staff and sell equipment in order to stay afloat, but this method increases overall risk. Companies could be forced to let valuable employees go and when the economy picks up again, could find those staff members working for a competitor. Recent advancements in technology have added another path-the ability to lower costs and optimize business processes by implementing a software system that doesn't require a heavy initial investment. This technology is called Software as a Service, or SaaS, and allows companies to use powerful, integrated software applications that increase productivity without the need of sophisticated hardware. Given the current economic conditions, SaaS could be the solution that allows contractors to survive the recession.

This is the eighth article in the series, "Software Feature Line-Up," by Mike Ode. Each article focuses on must-have accounting software freatures. To the previous article, click here.

In baseball, successful pitching has more to do with control and accuracy than any other skill. Successful contracting, likewise, is the result of job cost accuracy and control-including those elusive overhead costs. The key to identifying overhead costs and providing a complete picture of job profitability is the often misunderstood and sometimes complex concept known as overhead allocation.

Tags: 2009 September Issue , accounting , technology