Powerful Project Financials

Powerful Project Financials Explained

 

Having the capability to properly manage all aspects of your project financials is a powerful tool. Not only will you have complete control, accountability, and visibility over your project from the point of creation, right through to completion, you will have the ability to make proper, informed decisions to guarantee success.

 

 

Build Detailed Estimates and Accurate Project Financial Forecasts

 

Even before a project begins, ProScope for NetSuite allows you to build up detailed estimates and project forecasts via a comprehensive job costing estimator. This lets you scope the equipment, services, and resources required for a project in order to build an accurate project financials forecast, which should, in turn, lead to more competitive pricing.

 

Once the project won and underway, ProScope allows you to have multiple versions of the same forecast. This is useful to be able to compare versions as the project progresses. For instance, it is possible to compare forecasts to actuals to understand what is actually happening at any given time. ProScope also allows you to map forecasts or budgets into cost centres as well as to the client’s cost breakdown structures.

 

Easily control project financials

 

While cost controlling is intrinsically linked to forecasting, key here is the additional functionality ProScope provides when it comes to adding critical resource cost – people and assets – into the project. When this resource is occurring intercompany, it takes a significant amount of time and usually a lot of manual effort for these to be properly allocated. With ProScope, intercompany invoicing and reconciliations are fully automated, saving time and ensuring that project closing and reporting can be done accurately.

 

 

 

Facilitate Easier Project Procurement and Control of Inventory

 

At the outset of the project, it will be known, even at a high level, what resources and materials are required. Some of these will be in house and ready to be utilised, e.g. people on the bench, or in the case of materials or assets, available to be allocated from an inventory. More often than not it will also be necessary to bring in subcontractor resource and buy additional materials. To achieve this, a request will have to go to procurement and follow various complex procurement processes to get the items to where they need to be. With ProScope, you can manage all this from within the project, through automation, properly tracking and tracing all assets, as well as human resources, something which NetSuite is unable to offer.

 

What’s more, at the end of the project any unused inventory will be re-stocked, however items that are unused can still be tracked for use on future projects to avoid procuring again, instead re-using items that have already been paid for, therefore are 100% margin.

 

 

Generate Comprehensive and Accurate Project Reports

ProScope has built-in functionality to allow for comprehensive and accurate project reporting.

 

For each activity, the cost is estimated at the start of a project financials. This can then be attached to cost centres for internal reporting purposes and also mapped to the client’s cost breakdown structure. It is possible to track what the estimate on completion is based on the latest forecast. Tracking actuals to date allows for various different types of analysis and reporting, depending on what is required. It is also possible to view by the different billing modes, what has actually been invoiced to date, alongside revenue, costs, and margins.

 

This has all been designed to drives good capital working management at a project level.  A lot of systems don’t allow for this and as a result, a lot of companies have to do their working capital management a company level which is too generic. It won’t show the problem child projects that are eating up resources, those projects are well underway but have not yet been billed to the customer, and so on. Senior management needs to know this information so they can ask the right questions to ensure the Project Manager is on top of the project. Questions, for instance, that demand why work has not been billed for, or why inventory is being held on to.

 

Often projects are not billed because of an error that, if spotted earlier, could have changed the outcome. Errors such as this can cause huge headaches and usually have to be written off at the end of the project because, by this point, it is too late to bill the customer.

 

ProScope makes it possible to analyse costs by cost centre and activity but it also allows you to view cost ‘buckets’.  Reports can draw out as sold costs, EAC costs and actual costs to date. What’s more, you can view asset costs, vessel costs, procurement costs and labour costs independently of each other to give an accurate picture of what is actually going on within a project. This greater visibility allows true insight into the project, allowing management to make proper decisions based on what is and isn’t going well and, once again, take any necessary action sooner rather than later.

Contact us now for a more detailed conversation about how ProScope For NetSuite can help you with your project financials.

 

 

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