At their core, projects and project management are complicated. There are many moving parts, costs, people, and compliance requirements that need to be managed and accounted for at every stage. Government entities can be responsible for a diverse array of projects, from infrastructure to social welfare initiatives.
The key to success lies in optimising resources, cost efficiency, and compliance, all in a timely manner. Government bodies must demonstrate budget management to meet departmental expectations and fulfil their commitment to the public. Recognising this need, government entities can turn to advanced project-costing software solutions.
The dangers of manual project costing
Manually managing complex government projects creates elements of risk:
- Errors and wasted time from manually duplicating data across disconnected systems,
- Poor visibility of project budgets and statuses slows down decision-making.
- Minimal support to manage compliance requirements,
- Difficulty accurately capturing payroll costs without integrated payroll,
- Poor budget compliance affects the ability to secure new projects.
- Inefficient billing processes disrupt cash flow.
6 ways to improve efficiency with project costing software
Investing in project costing software minimises risk in your workflows and supports your department or team to deliver efficient, timely results.
1. Build better budgets with reliable information.
Government projects are subject to tight budgets and limited funding opportunities. Project costing software systems help you stay within budget and prepare for future projects. The system monitors all costs in real-time and compares actual expenses against budgeted amounts. Automated notifications trigger at certain thresholds and when projects are at risk of going over budget. This gives you the opportunity to adjust course and plan for change, staying one step ahead of budget risks. Use technology to execute projects with transparency and fiscal responsibility.
2. Empowering decisions and optimising resources with data-driven insights
Efficient resource allocation is vital when executing a range of diverse projects, preventing shortages or waste that compromise the success of multiple projects. Managing projects in real-time and in the cloud ensures optimal resource placement, mitigating risks in complex projects, and maintaining schedules. Government departments are empowered with data-driven insights to make informed decisions and contribute to overall project success. In contrast, manual processes rely on guesswork. This highlights the importance of adopting modern systems for improved decision-making.
3. Maintain accountability with real-time reporting.
Transparency and accountability are non-negotiables for government entities. Government entities need to readily communicate project progress and financial information to the public and other departments. With instant access to project finances and statuses, government officials can monitor project health, make timely decisions, and communicate effectively.
4. Ensure regulatory compliance for all projects.
Government projects are subject to stringent regulatory standards and fiscal compliance requirements. The public sector can struggle to adequately maintain financial and project compliance in manual systems. Documents can be misplaced, and the details in your general ledger can be corrupted by manual data duplication and human error. Project cost systems are designed to ensure that financial practices align seamlessly with these standards. Use them to allocate expense claims, site forms, or other files to specific projects for comprehensive compliance management.
5. Build a single source of truth with integrated systems.
Siloed information across different functions limits collaboration and operational efficiency. Implementing a cloud-based ERP system with integrated project costing allows seamless access to data within a centralised platform. This platform should integrate with common external systems, eliminating disconnected project management and accounting processes. Data flowing across departments enhances financial and project accuracy, boosting overall efficiency. Additionally, it fosters a collaborative environment for stakeholders to share information and monitor project progress.
6. Automated billing and reporting processes
With so much disconnected data that needs to be chased and re-entered, manual billing becomes slow and prone to errors. Automation between integrated payroll, finance, and projects ensures accurate billing and a true representation of project costs. Real-time billing information can be used to track project milestones and stay on top of timelines and budgets. Automation minimises the risk of errors associated with manual entry, speeds up the processing of financial transactions, and guarantees that all costs are accounted for in the progress of the project.
Project costing solutions for government organisations
MYOB Advanced’s Projects module is a powerful project costing and project accounting solution.
MyOB Advanced Business is a modern, powerful, and secure cloud-based business management platform. It is built for the cloud by the world’s fastest-growing ERP system, Acumatica, and localised for Australian and New Zealand organisations by MYOB. It is customisable and configurable based on its range of integrated modules and dedicated industry editions. In addition to the Projects module, MYOB Advanced has powerful finance functionality to support government organisations. It supports integrated project management functionality alongside powerful finance, payroll, workforce management, and CRM., ensuring accuracy and compliance for government entities.