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Technically Speaking
BY FRED ODE
Editor’s Note: Looking for answers to your tech issues?
Send your construction-related technology questions to heyfred@foundationsoft.com.
HARD-CLOSE VS. DATE SENSITIVE
ACCOUNTING SYSTEMS?
Q: I’m having a hard time getting
prior years’ data out of my accounting
system, especially when the data
crosses over a fiscal year-end boundary.
The Department of Labor’s Office
of Workers’ Compensation Programs
(OWCP) came in recently for an audit
and requested information from July
1, 2006 through June 30, 2007. It
took us nearly an entire day to manually
summarize the information from
a compilation of printouts. Do you
have any suggestions?
Fran
A: Many outdated accounting
applications use a hard-close
system, which is designed to prevent
users from posting data in periods
that have already been reconciled.
Unfortunately, you have described
just one disadvantage to using such
a system.
Date-sensitive systems, in contrast,
allow users to access any
report, including historical data from
any date and time, even past years.
To prevent data entry or adjustment
errors, these systems also offer a user-defined date range that can be set up
and controlled by an administrator.
When combined with an integrated
job cost accounting system, date sensitivity
also creates unlimited opportunities
for construction business
owners and managers to view and
analyze historical job data. With
access to all post-project reporting,
contractors are able to produce more
accurate estimates, improve productivity
and streamline workflow.
Of course, date sensitivity is just
one criterion to use when determining
whether or not your current
accounting system is right for your
business. Because hard-close systems
present many obstacles when
it comes to reporting, you may want
to consider other limitations of your
accounting software. Now may be
the time to start thinking about how
you can better meet your company’s
unique accounting and financial
management requirements.
Fred
Disclaimer: Technically Speaking
reserves the right to change names and
edit questions for privacy, length, and
readability issues.
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