If you’re a project manager or a business owner, you know that managing project finances can be a challenging task. From unexpected cost overruns to blown budgets, it’s easy to lose financial clarity on your projects and waste time and money in the process. However, with the right financial tool, you can take control of your project’s financial performance and make informed decisions that improve profitability. That’s where PowerWIP comes in.
PowerWIP is a software solution that eliminates common financial challenges by creating an interactive Work in Progress (WIP) that interfaces with your project managers. The solution was founded by professionals with deep expertise in the finance, IT, and construction industries, and it aims to help you and your team better understand your project’s performance and expose factors negatively affecting profitability.
Here’s how you can use PowerWIP to take control of your project’s financial performance:
Step 1: Extract financial data from QuickBooks Online
The first step is to extract financial transactions, estimates, and purchase orders from QuickBooks Online and create a Work in Progress schedule. This step is easy and straightforward, and PowerWIP automates the process, so you don’t have to spend time manually entering data.
Step 2: Create a PM job sheet
Once you have created a WIP schedule, each job on the WIP is connected to a PM job sheet that shows budget and actual costs for all major cost categories. The PM evaluates remaining budgets for each line and enters on each line the value of any savings or additional money needed to complete the project. All feedback from the PM flows directly into a savings/overrun column on the WIP.
Step 3: Review and approve savings and overruns
Once the PM has entered all the required information, it’s time to review and approve savings and overruns. PowerWIP makes this step easy by providing a graphical dashboard featuring a bubble graph representing the profitability of all jobs. Those jobs with profit fade are displayed below the line for quick recognition. This feature makes it easy to identify jobs that aren’t performing and make quicker course corrections.
Step 4: Post savings and overruns into QuickBooks Online
Once you have reviewed and approved savings and overruns, PowerWIP posts those savings and overruns into QuickBooks Online with the click of a mouse. This feature eliminates the need for manual data entry and saves you time and money.
The importance of using PowerWIP
Now that you know how to use PowerWIP, let’s discuss why it’s important to use this financial tool. Here are some of the benefits of using PowerWIP:
- Improved financial clarity: PowerWIP provides an interactive Work in Progress that helps you better understand your project’s financial performance. By using this tool, you can quickly identify jobs that are performing well and jobs that require attention.
- Elimination of common financial challenges: PowerWIP virtually eliminates common financial challenges such as wild variances in gross margin percentages, blown budgets at the end of a job, and unexpected cost overruns. By using this tool, you can avoid these challenges and improve profitability.
- Improved communication: PowerWIP improves communication between the field and finance, which is essential for effective project management. By using this tool, you can ensure that everyone is on the same page and working towards the same goals.
- Quicker course corrections: PowerWIP allows you to make quicker course corrections by identifying jobs that require attention. This feature saves you time and money by allowing you to make informed decisions quickly.
In conclusion, PowerWIP is a valuable financial tool that can help you take control of your project’s financial performance. By using this tool, you can improve financial clarity, eliminate common financial challenges, improve communication, and make quicker course corrections. If you’re interested
