One of the most important factors in construction accounting software is the ability to capture payroll data in real time. In fact, getting a new construction software package with accouting functionality that does not have the ability to capture payroll data in real time would be comparable to purchasing a new saw without any blades. Essentially, you're wasting your money and won't get anything that is useful!

Payroll is an important piece of construction project accounting as it represents the cost of human labor. Thus, it is key to be as up to date as possible at any given point in time. This will ensure that project charges are directed properly and will help project managers stay up to speed on the daily cost of the project and the impact that payroll figures have on it.

Further, some construction companies are structured such that they have graduated pay scales based on employee skill levels. Thus, an accurate, real time construction account software package will be able to track actual project costs at all times. Good software will take all guess work out of the process.

Most of today's construction accounting software packages will offer as much real time data as is possible. This is beneficial to construction companies because today's economy is more demanding than ever before. The world moves at a higher speed than ever and, as a result, projects are subjected to more risk if the data is old or incorret.

This is the good news. The potential bad news is that tracking project costs in real time can become an administrative headache when it comes to allocating manpower, equipment, and so on.

We know that most construction projects are not executed according to initial plans and estimates. Last minute on-the-job changes in labor, equipment problems and other unanticipated issues are commonplace.

For example, if a particular piece of the project is supposed to be completed at a given time and the only manpower available are not the people that were planned and accounted for in the project's budget, something will have to change and over or under charges will be reflected in real time payroll data collection.

Therefore, it goes without saying (although it is being said), that some amount of flexibility must be built in to an effective construction accounting software package. Project managers and field supervisors must be able to deviate from original plans to move the project forward. The hope is the the built in flexibility will still allow the project to be completed within the allocated budget.