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Chapter 6 MANAGEMENT 299

Computer Cost Accounting:

There are many Integrated Cost Accounting Systems that are more than adequate for most
Job-Costing needs. The type of software selected will depend on a number of factors but usually
amount to personal choice or a recommendation from a business associate. The obvious choice
of software for the budget conscious buyer will be a modular system that can have modules added
as you’re needs dictate. The ideal system would include a fully integrated estimating module that
will automatically convert your estimate to a construction budget and a cost accounting
capability. Prior to purchasing or upgrading your present general accounting software we
recommend consultation with your accountant and other professional business associates
knowledgeable in these matters. The expectations for a good Cost Accounting System would be
one that can identify problem areas of your construction budget while allowing a variety of
accurate statements and reports to be printed out.

The Data Entry System will require Job-Cost Coding for payable invoices and payroll
expenses that matches your initial contract budget coding. Account Receivables, when invoiced,
would be entered and coded to the individual projects providing you with a current and accurate
budget balance. The advantages of Computer Based Cost Accounting is the relative ease of
inputting data and the accurate, automatic current output that results. Depending on your volume
of business and the available personnel for cost accounting purposes we recommend a system be
implemented. The ultimate goal should be fully Integrated Computer Based Cost Accounting
System that is compatible with your computer based General Accounting System.