3 ways to strengthen construction financial management processes
New year, fresh financial start – it’s not too late to make this your resolution.
It’s still the dawn of 2021, and many of us are working on goals to improve our lives. Get fit, eat healthier, sleep more – you know the drill. But you’ll want to improve your business in the coming months, too. The best way to do just that is by creating proper processes for construction financial management.
Even for contractors with little-to-no financial experience – the ones who have a passion for construction, design and impressing clients but are now wondering how to manage a construction budget effectively (or at all) – no need to sweat it. If you’ve got Buildertrend on your side, you have the tools to make your company more prosperous.
Our construction budgeting software can be just as easy to master as our scheduling, communication and sales-focused functionalities.
So, where do you start? For construction financial management done right, we’ll zero in on three processes to button up – and how tech gets the job done.
Read on to learn how leveraging construction project management software never leaves your finances to chance.
1) Implement cost codes to organize your finances
Construction financial management is made easier when expenses are organized, spic and span. That’s where cost codes come in. This enables construction companies to separate costs into specific categories to determine how much certain tasks are – and how that compares to what was forecasted.
What’s next after determining your cost codes?
You can effectively use and prioritize them within the Buildertrend platform by establishing a project budget via the Estimate tool. As the project progresses, you can then track expenses and categorize them as you see fit. Any user with appropriate access will be able to view the original estimate against actual costs, too.
With your cost codes and Buildertrend’s financial tools working hand in hand, you’ll see where you’re spending too much on each job – and aim to control it. This makes it simple to over deliver for clients while remaining under budget.
2) Know where you stand – and where you’re going – with reporting
The health of your business should never be a mystery. Let Buildertrend reporting check its pulse at any point.
Once you’ve successfully entered in your data into our Estimate and Budget tools, it’s time to take construction financial management to the next level with daily reports. These are useful for seeing where you stand today and what money moves to make tomorrow.
With Buildertrend’s Work in Progress report, you can keep projects in check by reviewing details like total billings, profits margins and cost to complete on individual jobs or across all jobs. This at-a-glance view then empowers your team to make quick pivots or adjustments as needed.
Maximizing success in 2021 is all about staying on track and on budget. Construction reporting gets you there.
3) Streamline processes by integrating with QuickBooks
Exceptional communication in construction is about more than just staying connected with your team from wherever, whenever. It’s about staying connected with your finances, too. Two-way sync between Buildertrend and QuickBooks has this process perfected.
Even better, the setup is easy, and your numbers are adjusted in real time. Now your financial information is stored in the same place as the rest of your project details. With the push of a button, you can take job specific expenses that originated in QuickBooks and send them back into your Buildertrend budgets for more accurate job costing across every project.
That means no more double entry or managing multiple systems. It all comes together under one roof with Buildertrend and Quickbooks for construction.
We’ll help you achieve confidence in your financial future – for 2021 and beyond.
Profitability strategies for 2024
We’re getting back to basics with actionable strategies for profitability – and tips directly from top builders on the importance of financial management.
Construction business loans: Definition, types and how to apply
In this comprehensive guide, we delve into construction business loans, including the types, benefits, application process and tips for securing them.
6 ways to improve your purchase order process
Construction purchase orders are a crucial component of project management. Learn more about what purchase orders are and how you can use them here.
Want to contribute to our blog?
We believe in building a community for construction – sharing is a big part of that. If you have industry expertise or a story to tell, your voice can reach thousands here.