Driving Best Practices for Contractors with Accounting Software
Ensure the integrity of all your financial and construction accounting software needs with PENTA, the enterprise software system which incorporates nearly 40 years of best practices for all construction software needs.
PENTA is construction ERP software (Enterprise Resource Planning) that delivers the right combination of accounting functionality, enterprise-class utilities and robust technology to meet all financial management challenges faced by engineers and commercial and industrial contractors.
Efficiently manage your firm's financials with enterprise-class software:
Proactively monitor potential financial impacts with Operational applications integrated with Construction Accounting
Keys to a Successful Construction Software Rollout
Evaluating Construction Accounting Software? Learn the three Keys to a Successful System Rollout.
Download the White Paper
Flexible Organizational Unit Structure
PENTA construction accounting software has been designed from the ground up to meet the needs of large firms with sophisticated requirements such as complex multi-company organization structures, diverse project management requirements, multiple locations, and international operations. A key requirement to meeting these needs is a foundation that supports an organization structure that grows and changes over time. In PENTA this begins with the Organization Unit hierarchy.
The Organization Unit structure is a complete definition of your business units including the assignment of attributes such as where you have legal entities, where you want to establish balance sheets, where you require P&L reporting, etc. These attributes may be assigned to a business unit regardless of where that business unit exists in the overall hierarchy. The Organization Unit is one component of the general ledger structure, but it is not a segment of the chart of accounts. Some software vendors provide a Company Code, and then bury other organization unit components in the chart of accounts.
Keeping the organization unit hierarchy as a separate entity outside the chart of accounts enables:
- Unlimited levels of business units within the corporate hierarchy
- Ability to roll up financial results using the parent/child hierarchy, but just as easily roll up similar business units across the hierarchy without having to hardcode reports
- Chart of accounts is set up one time, not once for each company and business unit
- As your corporate structure changes over time PENTA allows for insertion of new levels in the hierarchy or changing the relationships of the existing business units
- User security may be tied to any level in the hierarchy. For example, user ABC may be allowed to view activity in division 1 but not division 2 within company X
- Ability to define business rules by organization unit. Some examples include:
- Establish different overhead rates by company, division, department, etc.
- Authorize the use of specific data elements by business unit – e.g., work order status code “out to lunch” is valid for use in the Denver service department but not the Portland service department, or customer location #99 is valid for use for a subset of business units, but not all
- The approval workflow for a purchase order may differ between the engineering and construction business units
Automated Earned Revenue / WIP Calculations
PENTA enables you to automate earned revenue and Work in Process (WIP) calculations including the posting of accruals into the general ledger. On lump sum contracts, PENTA uses actual job costs and forecast cost at completion or estimated cost for a percentage of completion earned revenue calculation. On Time and Materials (T&M) or cost plus contracts, PENTA accrues unbilled revenue using a job’s markup percentages or billing rates applied to costs incurred but not yet billed.
Accounting Period Controls
PENTA financial management software allows you to control who has access to an accounting period using status codes which can be open to all authorized system users, or controlled on a per-user basis, whether the period is open, restricted, closed or reported.
5 Reasons Why Your Construction Firm's AP Department Needs ECM Software
Evaluating Construction Accounting Software? Learn 5 Reasons Your AP Department Needs ECM.
Read the White Paper
Construction Project Management with Integrated Job Cost Accounting and Project Administration
PENTA Project Administration provides a central working area for Project Managers to execute administrative, as well as financial control of a project. Full integration with PENTA Job Cost Accounting keeps accurate, current job cost information readily available. PENTA helps Project Managers handle a variety of construction project management responsibilities, including:
- Change Management
- Subcontracts / Purchase Orders
- Issues, RFIs, Submittals
- Drawing Management and Document Control
- Meeting Minutes
- Daily Reports
Construction Accounting Analytics, Reporting
PENTA financial management software facilitates continual performance improvement. Using PENTA’s Executive Dashboard (Workbench) construction accounting and finance professionals can analyze past performance for planning, identify exception conditions for action and trend current performance for forecasting. Some of the key information provided includes:
- Forecast & Actual Margin Variance on Jobs
- Gross Margin Trend Month by Month
- Job Contract Booking and Estimated Margin Trend
- Cash & Working Capital Status
- Profitability by Customer (Current vs. Prior Years)
- AR & AR Status – Past Due Invoices
Bank Activity Management
PENTA construction accounting software helps your accounting personnel track activity through an unlimited number of banks and bank accounts:
- Automatic Generation of Positive Pay files for both Payroll and AP checks
- Direct deposit for both Payroll and AP distributions
- Automatic import of cleared checks to aid the reconciliation process
Answers to the most commonly asked accounting questions regarding PENTA software:
Open AllClose All
Is PENTA an integrated solution?
Yes. All PENTA modules are tightly integrated; transactions are never entered more than one time and are automatically distributed to each module that uses those transactions, ensuring the sub ledgers and general ledger are always in balance.
Does PENTA accounting software help to image, store and manage accounting documents electronically?
Yes. PENTA allows users to capture documents such as accounts payable invoices electronically, providing centralized storage and access.
Does PENTA accounting software allow for OLAP analytics of financial data?
Yes. PENTA Role-Based Workbenches are Construction Business Intelligence Tools that provides for ad-hoc analysis of financial information with the ability to pre-define KPI’s distributed to users in the form of dashboards, graphs or reports.
Does PENTA accounting software address requirements of a multi-company construction firm?
Yes. PENTA can handle accounting for an unlimited number of companies, divisions, departments, etc. within a single database, including automated inter and intra-company logic to simplify processing of transactions between companies.
Does PENTA perform revenue recognition calculations and are the results reflected in the general ledger?
Yes. Users determine the frequency of which they perform revenue recognition calculations, quarterly, monthly or even weekly. Earned revenue is calculated in accordance with a job’s contract, lump sum, cost plus, T&M or unit price, with revenue accruals and over/under billing entries automatically posted to the general ledger.
What financial statement reporting options exist within PENTA? Does PENTA issue consolidated financial statements?
Yes. PENTA offers over 25 different financial statement templates, including consolidated financial statements. PENTA’s Workbench Trial Balance information may also be used to facilitate the creation of user-specific financial statement reports.
Does PENTA enable booking of transactions in currencies other than US Dollars?
Yes. Record transactions using currencies other than your primary reporting currency. PENTA converts source currency values to a base currency equivalent amount using current exchange rates, while maintaining payable, receivable and cash balances in source currency amounts.
Does PENTA support Positive Pay?
Yes. PENTA enables construction companies to configure positive pay files for accounts payable and/or payroll checks for an unlimited number of bank accounts.
Is it possible to track financial budgets in PENTA?
Yes. Track an original budget as well as an unlimited number of revisions or re-forecasts of budget information.
Does PENTA provide Contracts in Progress or WIP reporting?
Yes. PENTA provides multiple Contracts in Progress or Work in Process report options for inclusion in a standard financial reporting package.
Learn How PENTA Can Help You
Penta Technologies develops enterprise software that helps construction, service, and engineering enterprises improve business performance.
Request a Free Demo