Office managers in the construction field know the industry isn’t exactly made up of early adopters when it comes to innovative software and construction technology. But this tendency shouldn’t prevent office managers from exploring the value that construction technology can add. Many construction softwares, particularly those that help manage financial processes, empower office managers to do their jobs better.
Presenting an argument to the boss as to why they should adopt new construction technology may seem intimidating, but the following benefits of financial management software for construction companies should be enough to convince them. Read on to see how implementing construction software can save the company time and money while empowering office managers to be the best at their jobs.
1. Decrease Accounting Errors
Easy-to-use construction software for financial accounting can help office managers significantly reduce errors. Managing invoicing and billing through a specialized software platform minimizes human error and speeds up accounting processes. This reduces stress for office managers, and cuts down on time spent reviewing and double-checking accounts and paperwork. More accurate financial management saves time and prevents billing delays.
2. Reduce Late Payments
Unfortunately, late payment is common in the construction industry, but it’s a fact that sending preliminary notice reduces late payments. levelset‘s data from 2015 shows that mechanics liens only needed to be filed in fewer than 2% of cases where preliminary notice and notice of intent were sent properly. Some construction softwares make the process of sending notice a breeze. Managing this process online through a specialized platform can save office managers a significant amount of time and can increase profits by making sure payment is secured on every project. Sending conditional lien waivers is another way to speed up the payment process.
3. Streamline Invoicing and Accounts Receivable
Construction technology helps save time on routine bookkeeping practices so the office manager can focus on customer service and supporting the firm’s sales team — activities that generate customer loyalty and increase revenue. By automating busy-work, office managers can spend more time on higher priority tasks that require personal involvement and creativity.
4. Manage Cash Flow
Improving invoicing, sending preliminary notices, and increasing the accuracy of bookkeeping are all tools to help improve cash flow so construction companies don’t have to worry about paying bills late or struggling to make payroll. A construction company with healthy cash flow is in a good position to grow and take on new business. Tracking accounts receivable and expenses electronically makes it easy to identify problems early on and solve them before it’s too late, for example, recognizing that an invoice has not been paid before the timeframe to file a mechanics lien expires.
5. Maintain an Electronic Archive
SAAS (software-as-a-service) solutions can help maintain accurate financial records to track customer credit histories, file taxes accurately and better manage the firm’s financial situation. Cloud-based construction technology provides a secure database of financial records and is accessible from any internet-enabled device. Personnel with the right credentials can see customers’ purchasing and payment history and write more accurate bids by comparing similar jobs. Everyone from office managers to owners will appreciate the peace of mind and streamlined operations processes.
Getting the Owner’s Buy-in for Construction Technology Investments
Because software hosted in the cloud, it is a scalable solution that requires no infrastructure investments or hardware upgrades. Office managers should consider the overall time and cost savings, then do the research to provide the decision-makers with options to select construction technology that fits the company’s needs and within the company’s budget.