Construction companies face complex payroll challenges. If you’re in the industry, then you know these challenges cover the gamut from dealing with dozens to thousands of workers and complicated union and certified payroll requirements, to managing projects spread across regions and states (with different tax rates, codes and rules). It’s a headache. What you need is sophisticated cloud construction management software, such as Acumatica Cloud ERP and Acumatica’s Construction Edition.
Acumatica Construction can help you manage union requirements, federal remittances, year-end reporting, certified payroll and more—without aspirin.
Manual, Legacy Payroll Solutions Bar Success
Barriers in construction are nothing new. In this recent post, Modernizing Your Construction Business with Cloud Software, we write:
“One of the biggest and hardest [challenges] to overcome has been the continued reliance on manual, paper-based processes and multiple, disconnected systems to manage operations. These disconnected systems—or legacy solutions—are often outdated and require manual workarounds to get a job done. Construction companies that rely on these solutions suffer from data silos, multiple versions of information, poor visibility, poor productivity, human error and a lack of control over business operations.”
Using manual, paper-based processes or legacy software solutions to handle payroll produces the same consequences, plus a lack of visibility into true costs. Adding fuel to the flames, construction companies, according to Construction Executive (CE), are overpaying payroll by $7 billion dollars. Every year. And this is apparently a “conservative estimate.”
CE declares that incorrect time reporting is the biggest culprit for overspending, and it’s not just employees causing the problem. Supervisors, payroll and HR contribute to the problem with timecard submission and data entry errors.
“Misreporting is done accidentally more often than it’s done maliciously (although both are a reality), but in either case, the errors don’t need to be large to create problems. In fact, it’s the other way around. Big errors tend to be caught and fixed, while smaller ones slip through unnoticed. Add enough of them together, and payroll can easily be inflated by thousands of dollars per month for each employee.”
Small, medium or large, no construction company can afford to lose money over fixable issues. CE suggests the answer is “leaning into technology and embracing the right tools.”
Here at NexTec Group, we believe that technology and tool is Acumatica’s construction ERP software and Time Management solution.
Acumatica’s Construction ERP Software
With Acumatica Construction Edition, you can manage multi-company, multi-project payroll processing. Built-in tax codes, including federal, state and local taxes, automates what can otherwise be a human-directed, time-consuming and error-filled occupation.
Cloud-based construction management ERP software lets you:
- Manage union requirements, certified payroll and labor classes
- See project costs in real time
- Automate payroll collection and processing
- Calculate pay rates and process paychecks in real time
Acumatica’s Time Management solution, which is embedded and licensed with the Acumatica platform, addresses time reporting concerns. With Weekly Crew Time Entry, you can capture time for your employees, contractors and crews and enter it into any web browser or through the mobile application (mobile technology is important for the construction industry) with a single click. The information is automatically calculated and collected on a consolidated timesheet, reducing order entry time and mistakes.
Also included in Acumatica’s Time Management solution is the ability to route timecards for multiple approvals, receive alerts when new time activities need attention and configure approval workflows.
Manage Construction Payroll with Acumatica Cloud ERP
There’s no getting around it. Construction payroll management is complex, but there are ways to simplify the complexity, and Acumatica Cloud ERP is one of them.
With Acumatica, you manage payroll, finances, projects, operations, supplier relationships and more from a single, flexible and robust system. It’s a cloud ERP solution that eliminates the old, inefficient (not to mention profit-killing) way of doing business, and it sets you and your construction company up for success.
As CE notes, “In the future, this shift towards digital solutions will not only strengthen the bottom line of individual companies but also impact the entire industry, creating better outcomes for owners and employees.”
NexTec is committed to creating better outcomes for our customers. We have been helping businesses choose the best ERP, CRM, BI, Cloud and On-premise solution for their specific needs for over 26 years. To learn more about the importance of modern software in the construction industry, download NexTec’s complimentary How to Compete in Construction with Modern Software guide
Contact us today with any questions about Acumatica Cloud ERP and Acumatica Construction Edition. Together, they can help you manage not only your construction payroll requirements, but all of your construction management needs in the digital economy.
We’d love to chat.