As the name suggests, Project Accounting is simply accounting on a project-by-project basis. In the case of Project Accounting, all of the financial components of a project such as estimates, budgets, costings, bookkeeping, billing and everything in between is being tracked. Project accounting is important for certain industries where work activity is performed on work to work basis since it allows to identify the profitability of each project which further identify areas of cost & revenue that can be then be optimised.
In the case of standard cloud accounting, it deals with the entire accounting for a company as a whole, usually within a fixed period (i.e. quarterly or annually). Standard accounting takes into account every project that an organisation undertakes.
Project accounting is concerned with the financials of an individual project. It allows companies to identify areas of their finances that can be optimised by monitoring on day-to-day financials. This helps the companies to identify trouble areas that could impact margins.
We at Whiz Consulting specialises in doing project accounting and have wide experience in running project-based accounting for various industries bases in Australia.
Areas where project accounting is widely used and is an important feature of accounting:
We use the following popular accounting software to manage revenue and cost of a project: