There are a lot of requirements of contractors when performing public jobs. They have to get a payment bond from a bank, produce minority reports, Certified Payroll reports, and a variety of other information. There are some contractors who go through the difficult tasks of producing these items through a manual, paper-only effort. There are real downsides to this approach. There is a better solution. Construction Accounting Software has the tools to either streamline or completely automate these tasks.
Benefits: Automation of Required Reporting
The Davis-Bacon Act of 1931 requires contractors working on public jobs to submit weekly payroll reports to certify wages were paid. Over time, more employment-related reports were required from contractors such as Minority Reports. The challenge for contractors is finding the time to devote to producing these reports. Construction Accounting Software automates the entire process for you. Once employees are entered into the system, the reports are already there for you to pull. So, all the user would have to do is run the report and all of the necessary data is pulled and forms the report. Now, instead of manually creating this report, it is done for you. The same is done for Minority Reports. With all of the information already in the system, there is no need for extra effort to create the report.
Another major requirement of the Davis-Bacon Act of 1931 is that contractors pay their employees the Prevailing Wage rate. The challenge is depending on where the work is done, the Prevailing Wage rate can be different between Federal and State. By using Construction Accounting Software to handle payroll, you can set employees to receive the proper Prevailing Wage amount—once again the software is doing all of the work for you.
Construction Accounting Software not only streamlines your business processes, it also helps keep you in compliance with the law. Built in are specific functions that help contractors meet the many requirements of public jobs. Extensive employee info can be stored in the system to make producing Minority and Gender reports easier than ever. Users can conduct payroll from within the system, allowing them to create Certified Payroll Reports. Items like Prevailing Wage and Fringe Benefits can be calculated in the system as well.
Downsides: Inaccuracy/Time Consuming
Using manual processes to complete these required tasks can be a tricky proposition. Businesses face penalties, including loss of contract, if requirements are not met. The biggest challenge to a manual process is the amount of effort and time it requires. Not to mention the amount of extra time needed to double check and verify all the information is accurate.
Ensuring that your business is compliant when performing public jobs can be tough if done through manual processes alone. Construction Accounting Software was made to make tasks like this easier for everyday contractors. By allowing the software to handle the mundane tasks like the production of Certified Payroll Reports etc., contractors can devote more of their time to the more important tasks. ■
About the Author:
Eric Goldstein is the president of C/F Data Systems. With more than a quarter of a century of experience in the construction software arena, Eric has led C/F Data’s ongoing development of the company’s flagship solution, STRUCTURE. He began his career at ADP, and first joined the C/F Data System sales department in 1985 and was quickly promoted to vice president of sales. After sales positions with Timberline software and Textura, Eric returned as C/F Data’s president in 2009.
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Modern Contractor Solutions, October 2017
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