Architekwiki
  • WIKI
  • Start Here
  • Resources
    • Arch Fin Model
    • MyCorbu
    • Trello-PM
    • FeeCalqs
    • OFFPLAN
    • Reading List
    • Free Resources
    • All Resources
  • Other
    • Details
    • About
    • Sign Up
    • Terms of Use
  • MyCorbu APP
  • WIKI
  • Start Here
  • Resources
    • Arch Fin Model
    • MyCorbu
    • Trello-PM
    • FeeCalqs
    • OFFPLAN
    • Reading List
    • Free Resources
    • All Resources
  • Other
    • Details
    • About
    • Sign Up
    • Terms of Use
  • MyCorbu APP

Architekwiki

A Resource For Architects
Subscribe

Accounting Mis-Match

5/18/2019

0 Comments

 
Accounting Mis-Match
​The insidious costs of a mis-matched accounting system. 

​How can accounting systems be mis-matched to the firms using them?

The First Way
The main way to get a mis-match is to use a generic accounting system. Architectural firms are project-based. If your accounting system is not project-based, one of two things has to happen. Either you build ancillary systems to track projects; or you mostly ignore the fact that you have a project-based business when doing accounting.

The problem with building ancillary systems, or even customizing generic software, is that it takes time to set up, it takes time to manage, and it takes expertise that you probably do not have. And all this time you are spending is not making you a better architectural firm. 

If you are ignoring the financial implications of being a project-based business, at least you are saving time. But you don’t really know why you get the results that you do. 


The Second Way
Another way to get a mis-match is to use an architectural accounting system that is designed for firms who can afford to have a full time bookkeeper. These are the 7% of firms who have more than 20 people. 

I tried that way out of ignorance. I didn’t think I had a full time bookkeeper, but I did. I didn’t dig deeply enough into what seemed like a given. 

The cost of the software is not the mis-match. The mis-match is the time that you invest in learning the accounting discipline, the time that you invest in managing the software (think AutoCad updates), the ongoing cost of maintaining your accounting system (postings, yearend close out, new tax rates, etc.), and the cost of doing things because you can. 

Financial statements and payroll are two examples of things you end up doing because you can. Both of these cost more to do yourself than to hire an expert. It may not seem like it because one is an unidentified overhead expense and the other is a very identifiable overhead expense. The unidentified overhead expense is not only larger but it is insidious because it also represents lost opportunity. You spend too much time on an accounting chore instead of spending that time on something of more value - business development, or doing architecture. 
Accounting Mis-Match
The Way
For the majority of architectural firms the solution is bookkeeping rather than accounting. Use an accountant for accounting. Just keep your financial transactions and your time entries by project (your firm is treated as a project in this solution). 

The software that I have been building is designed to do just that. The focus is on how each project stands as of yesterday, or when the last time entry was made. 

This is a link to a Test Drive Account so you can see what Architectural Bookkeeping looks like.

MyCorbu is the name of the software.
Accounting Mis-Match
Picture
MyCorbu
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Resources

    Start Here

    Picture

    Picture

    MyCorbu

    Trello-PM

    FeeCalqs

    Picture

    Terms of Use
    Your use of Architekwiki is implicit agreement with the 
    ​
    Terms of Use.

    RSS Feed


    Categories

    All
    Business Development
    Communications
    Concepts
    Design
    Detail
    Estimating
    Finances
    Legal Issues
    Management
    Miscellaneous
    Money
    MyCorbu
    People
    Planning
    Process
    Projects
    Records
    Services
    Specifications
    Standards
    Time
    Tools


    Archives

    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    June 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012

    Resources
VISIT ARCHITEKWIKI'S RESOURCES
Picture
Architekwiki | Architect's Resource | Greater Cincinnati | (859) 444-4560
© 2012-2020   Architekwiki​