According to a recent U.S. Bank study, 82% of businesses that failed noted sagging cash flow as a leading indicator.
If you’re a construction financial professional, you know how true this rings, as a strong cash flow is the key to keeping your company’s doors open and projects moving. If your cash flow dries up, it becomes extremely difficult to take on new projects — where up-front costs are almost always a significant part of the construction workflow.
Manual Processes are Draining Your Cash Flow
As the construction industry, and the world around us — modernizes, it’s becoming more important to ditch manual billing and cash management processes. Here’s why:
If the right people never seem to have access to review the right invoices or bills at the right time and it’s hard to tell if a bill has been approved, then how accurate is your cash flow?
Of course, this can be solved by allowing secure, real-time access to approvers who can view and quickly “OK” a bill and send it to the appropriate parties. Additionally, giving your entire project teams the instant visibility they need to see billing status and any changes made is key to faster, more accurate billing, increased project productivity by keeping work on projects moving, and, ultimately, stronger and more reliable cash flow for your organization.
But how do you know where to start with modernizing your billing and cash flow processes?
A unified construction management system helps your organization collaborate and adjust billing needs as necessarily due to improved transparency. Faster billing processes means higher profit margins, reduced project risks and a stronger cash flow.
On-Demand Webinar: Learn how to Gain Control of Cash Management & Forecasting in Difficult Times.