Automation
A construction firm with lots of different clients is likely to find that there are some finance jobs that just can’t be escaped. Take invoicing: with clients all paying at different speeds, it could well be the case that there are a double-figure number of unsettled invoices at any one time. Keeping track of who owes what can sap staff time quickly, so a finance software package that can automate everything from the initial invoice to reminders is a good move.
Data accuracy
For a firm with very regular cash flow and a non-dynamic list of tasks, it may be possible to keep track of who is owed what with a simple spreadsheet. However, as any finance director at a construction firm can tell you, this isn’t always the case for those who work in the building trade. At any one time, a building firm could have lots of different unpredictable inflows and outflows.
Suppliers may be providing a different amount of material every week, for example, while the number of contractors on board could double at a moment’s notice. With spreadsheets, the potential for data inaccuracies to slip through is high – but with sophisticated finance software that is capable of independently flagging errors, the risk is reduced. This means that the finance team can produce credible, unified information on outstanding payments at any one time.
Cloud access
For a construction business, portability is key. Some team members might be based in the office, while others are on site. Others are likely to be out and about across the local area, speaking to potential new clients. When everyone can log into a centralised dashboard and view payment information, though, they can all be kept in the loop – and all relevant parties can work together to chase down outstanding payments.
Investing in finance software to manage outstanding payments is a wise move no matter what industry you work in. However, for a construction provider, it’s especially important to give some thought to tackling the problem. With so many diverse supply chains and different invoices likely to be in, losing track of them will mean wasted staff time at best – and lost revenue at worst. Finance software, though, is a great way to avoid these problems.