Upgrade Accounting Software for Engineering Firms | Velosio

To be successful in the long term, engineering firms must deliver exceptional value to every client while each one of their projects stays profitable. As anyone in the business will tell you, it is easier said than done.

Beyond the not-so-simple task of construction, engineering firms must excel at various administrative processes, including project management, financial management, and client relationship building. Balancing these responsibilities can be challenging, especially for firms without access to reliable, modern software tools. Juggling project deadlines, tracking financials, and staying up to date with client communication often leave little room for the strategic thinking and innovation needed for successful companies to continue to thrive.

Cloud-based engineering accounting software may be the answer

For many engineering firms, the solution lies in adopting cloud-based accounting software tailored to the unique demands of engineering and design professionals and their businesses. These tools simplify essential tasks like managing client data, tracking income and expenses, and generating comprehensive financial reports. Advanced features like inventory and resource management further optimize workflows to keep projects running smoothly.

By leveraging specialized accounting software, engineering firms can free up more time to focus on their core mission—delivering exceptional designs—while the software manages the essential administrative work. In this article, we will explore how accounting software designed for engineering firms works, the features you need to look for, and best practices for deploying new account software.

What is engineering accounting software?

Engineering accounting software supports the key activities of design, engineering, and construction businesses, like project management, tracking work time and expenses, and client billing. Many platforms also offer tools to enhance customer relations and conduct more strategic business oversight so professional engineers can concentrate on skill-related work without critical business functions falling by the wayside. This capability is especially helpful for smaller firms that may not have the same administrative resources as larger enterprise organizations.

Sophisticated accounting software often includes enterprise resource planning (ERP) capabilities, which integrate data and processes across various departments such as finance, human resources, and project management. The main objective of using an ERP system is to promote integration—eliminating silos within teams, streamlining workflows, and optimizing complex operations that span the entire business. By providing a unified operating environment, these systems help engineering firms improve efficiency and drive better performance.

Examples of engineering accounting software

Microsoft Dynamics 365 Business Central: A comprehensive ERP that integrates financial management features, project tracking, and workflow automation.
Sage Intacct: A cloud-based solution offering financial management and real-time reporting.
Progressus: A project-centric platform combining accounting, time tracking, and professional services automation.
Workday: A unified system integrating accounting, payroll, and workforce management.
Oracle NetSuite: A cloud-based ERP that combines accounting, inventory management, and CRM tools.
Acumatica: A cloud ERP solution offering accounting, project management, and inventory tracking tailored to project-driven businesses.
Odoo: An open-source ERP with customizable accounting, CRM, and operations modules.
Certinia (formerly FinancialForce): A service-focused ERP that includes project accounting and resource management, built on the Salesforce platform.
IPS Cloud: A basic cloud ERP system simplifying accounting, inventory, and operations for small to mid-sized engineering firms.
Deltek: A project-based ERP designed for professional services, offering project accounting and resource management tools.

What are the benefits of using specialized engineering software?

Engineering firms are more project-focused and have unique administrative and financial workflows that general-purpose accounting software may only partially accommodate. Specialized software tailored to the industry offers several key advantages:

Streamlined administrative tasks
Accounting can be time-consuming, especially for engineers and project managers without financial expertise. Specialized engineering accounting software automates repetitive tasks, allowing you to focus on work involving your professional skills: design, project management, and strategic decisions.

Gain better financial oversight
Centralize all financial data—profit margins, expenses, and tax deductions—for improved visibility and control. A unified platform helps ensure you stay informed and make data-driven decisions.

Automate complex processes
Engineering accounting software automates critical workflows like contract generation, payment reminders, and late fee applications. Notifications keep you updated, reducing manual busywork, and ensuring smoother client interactions.

Win more bids
Quickly generate structured, precise job proposals to win more bids and streamline client negotiations. Creating detailed, professional estimates quickly can give your firm a competitive edge.

Easily track time and expenses
Integrated time-tracking tools let you monitor billable hours, set rates on different resources, and simplify invoicing with accurate records. These tools improve resource allocation and ensure accurate billing.

Complete projects faster
Task management tools help you organize priorities, reuse standard templates, start work timers, and collaborate seamlessly with your team. These features integrate into your workflow to boost efficiency and make meeting deadlines easier.

Simplify invoicing
Automated invoicing tools enable professional-looking invoices with built-in reminders, late fee applications, and read receipts. Templates save time while maintaining a polished, consistent appearance.

Get paid faster
Offer globally recognized payment options like credit cards, ACH, and PayPal to make it easier for clients to pay promptly.

Look for these 10 essential features in engineering accounting software

Choosing the right accounting software is crucial for engineering firms to manage their unique, project-driven financial needs efficiently. Consider these key features when selecting a solution:

1. Real-time activity tracking
Stay informed with real-time updates on task and overall project progress, costs and overruns, and resource utilization. This feature enables proactive decision-making and ensures projects stay under budget.

2. Flexible budgeting
You need the ability to adjust financial plans as project requirements change. Flexible budgeting tools allow for accurate forecasting and better management of unexpected expenses or shifts in project scope.

3. A project creation wizard
Simplify project launches with a guided setup process and standardized templates for defining budgets, timelines, and resource needs. This feature streamlines workflows right from the start.

4. Flexible subscription fees
Choose a payment model that suits your firm’s needs, whether monthly, annually, or bundled with other services. Flexible subscriptions help you scale software usage based on project demands and budget constraints.

5. Resource planning and grouping
Optimize your personnel, equipment, and materials allocation with resource planning tools. Grouping features organize teams efficiently, ensuring the right resources are available for every project phase.

6. Task management and workload distribution
Assign, track, and manage deliverables with robust task management features. Workload distribution tools help balance team efforts, reducing bottlenecks and preventing unnecessary overtime or overwork.

7. Customizable user permissions and access controls
Enhance security with detailed permissions to control who can view, edit, or approve financial data and manage company resources.

8. Expense management and project-specific tracking
Track expenses at the project or task level for detailed financial insights. Expense management tools streamline approvals, reimbursements, and reporting to keep costs in check.

9. Flexible allocation and rate tables
Handle complex billing needs with customizable rate tables and flexible fund allocation tools. These features improve cost accuracy and simplify billing for diverse project requirements.

10. Error management and transaction validation
Prevent costly mistakes with error detection and validation tools. These features ensure every transaction is accurate and compliant with your firm’s standards.

Architecture Accounting Solution Comparison Chart

How do I choose the right engineering accounting software for my business?

To select the best accounting software for your engineering firm, you must assess your current tools and workflows. Identify what supports your team’s efficiency, as well as pinpoint recurring challenges. Identifying these patterns will help you determine the most needed features to improve operations.

Other key factors to consider:

Industry-specific functionality
Engineering firms can have specific operational needs. Look for software designed for project-based accounting that tracks income, expenses, and resources at project and task levels. Essential features include tools for billing, support for various contract types (fixed-price, cost-plus, time-and-material), milestone tracking, and compliance management.

Budgeting and forecasting
The software should allow for detailed project budgets, real-time cost monitoring, and forecasting future financial needs to help you stay on track and plan effectively.

Integration capabilities
Ensure the software integrates seamlessly with essential tools your team already uses, such as CAD platforms, project management software, or ERP systems.

Collaboration features
Accounting software should promote teamwork by enabling easy information sharing, tracking project progress, and enhancing coordination between teams, clients, and external partners.

Reporting and analytics
Choose software with robust reporting tools that offer real-time analytics, customizable reports, and visual dashboards for tracking your key performance indicators (KPIs) so you can make informed decisions.

Scalability
Your software should grow with your business, supporting additional users, managing larger projects, and handling more complex transactions as your firm expands.

Customer support
You should also look beyond the software itself to the provider. For example, good customer support is critical to ensure smooth operations. Look for providers offering multiple support channels, such as phone, email, and live chat, as well as training resources and a detailed knowledge base.

Budgeting tips using engineering accounting software

A well-managed budget ensures both financial stability and smooth project execution. That should lead to reduced misunderstandings and more positive relationships with your client and your own staff. Engineering firms can leverage accounting tools with features like time tracking, project scheduling, and financial reporting to monitor and adjust budgets as project requirements evolve.

Project budgeting techniques

● Top-Down Budgeting: You establish an overall budget and then work down to allocate resources based on experience with similar projects.
● Bottom-Up Budgeting: In this method, you estimate costs for individual tasks and aggregate them to create your project budget.
● Parametric Estimating: Here, you use historical data to predict costs based on specific project parameters.

Steps to build a reliable budget

Identify Revenue Streams and Expenses: On one side of the ledger, understand your income sources, such as client payments and project fees, and on the other, track your overheads and potential unforeseen costs.
Allocate Resources by Project Phase: Distribute resources strategically across design, development, and execution stages to ensure each phase is properly funded.
Set Realistic Financial Goals: Define clear financial objectives and milestones that align with your firm’s strategic vision.
Plan for Revenue and Talent Needs: Forecast expected income and address resource gaps with a well-defined talent plan to ensure smooth operations.

What is the best engineering accounting software?

Finding the right accounting software for engineering firms means choosing a solution that balances robust functionality with industry-specific needs. We here at Velosio believe Progressus is a standout option. It is built on Microsoft Dynamics 365 Business Central, a comprehensive ERP integrating essential engineering business functions, such as finance, procurement, project management, and resource planning, into a single platform. Progressus provides centralized insights, tight control over operations, and the scalability needed to grow alongside your business.

Choosing the right provider is also critical to unlocking the full potential of your accounting software. An experienced provider like Velosio can tailor the solution to your firm’s unique needs, streamline the deployment process, and ensure you maximize your investment. We can help you leverage platforms like Dynamics 365, Azure, and Microsoft 365 to gain a competitive edge.

With over three decades of experience implementing ERP solutions for project-based businesses, Velosio will ensure a smooth transition to Progressus and Dynamics 365 BC so your firm can leverage the power of cloud technology to stay competitive and thrive.

Update Your Accounting Software to Power Your Engineering Firm