Having construction expenses to manage at all is a relief after two years of wild on-again, off-again projects. It is the nature of our industry to have financial cycles, even when we’re working steadily.
However, 42% of us pay our subcontractors before our customers pay us. Later, cost overruns nibble away at profits. If you think in terms of win-lose, the customer wins, the subcontractors win, and hopefully you don’t lose. You just win less.
Controlling construction spend through software automation is a way to better manage projects’ financial outcomes.
How Automation Can Manage Construction Spend
Financial automation software tracks every dollar spent:
- Accounts payable
- Corporate cards
- Employee expenses
Automation increases control over construction spend through:
- Real-time reporting – All projects stray off-budget, but automation software gets you back on track sooner. Knowing real-time status means decision-making is faster and more efficient. Cost overruns are caught earlier and finance teams save time looking for exceeding expenses; the software raises a red flag in real-time.
- Time-saving money-management – Your finance team can save time reconciling expenses. The back-and-forth financial transactions between vendors, corporate cards, and general accounts payable are minimized plus the human-error factor is greatly reduced.
- Workflow approval processes – An automated approval process gives you a handle on construction spend like nothing else. You can quickly go to the expenditure source with questions. It also creates an audit trail that – again – saves time for finance team members hunting and reconciling so they can provide insights and actual finance management rather than spending time on damage-control accounting.
When you’re able to see the big picture, construction spend and budgeting become knowledge-driven. You can make necessary adjustments quickly.
Construction Monitor Provides Money-Making Business Leads
We believe construction spend and money management software are necessary to grow your business. That’s why we offer information about software platforms. But you’ve got to make money in order to manage it.
Construction Monitor won’t endorse any brand of software except our own. Building permit software allows us to refine data you can use for business-building. Whether you’re seeking a mentor, considering new-start partnerships, or simply tracking competitors, we can give you data analytics pertinent to your area of the U.S.
Need to know more? We’re eager to share. Call 800.925.6085 (international/435.586.1205) or contact Construction Monitor.