What is project accounting software?
Project accounting software organizes the financial activity of a project: budgets, committed and actual costs, time, expenses, revenue, billing, and forecasts. It answers whether work is financially on track and which commitments remain. The project view should reconcile to the organization's finance system rather than becoming a separate, conflicting ledger.
Core data and workflows
Budget and cost structure
Define projects, phases, cost categories, and funding sources. Record baseline budget and approved changes separately. Capture purchase commitments before invoices arrive so managers can see likely exposure, not only posted costs.
Time and expenses
Route timesheets and expenses through appropriate review. Link approved hours and costs to project, task, rate, and period. Make corrections traceable and define how late entries affect closed periods.
Billing and forecasting
Track contract terms, milestones, billable time, and invoice status. Distinguish recognized revenue from cash received. Forecast remaining cost and margin using assumptions that project and finance owners can review.
Implementation steps
- Choose one project type and define the financial questions it must answer.
- Agree on project codes, cost categories, rate rules, and finance-system ownership.
- Model budget, commitment, actual cost, time, billing, and forecast records.
- Test change orders, rejected time, partial billing, and period adjustments.
- Measure budget variance, unbilled work, forecast accuracy, and margin trends.
Where INFORMAT fits
INFORMAT provides low-code data models, forms, linked records, workflows, permissions, dashboards, and integrations. Organizations can use these to build project-finance workflows connected to accounting systems. General-ledger posting, revenue recognition, and tax treatment require finance-specific systems and professional validation.
FAQ
Is project accounting the same as project management?
No. Project management coordinates delivery, tasks, and schedule. Project accounting focuses on financial commitments, costs, revenue, and profitability.
Why track committed costs?
Purchase orders and contracts can consume budget before an invoice posts. Including them gives a more realistic view of remaining funds.
What is the first integration to plan?
Usually the authoritative finance or ERP system, so project actuals and billing statuses reconcile.