{"id":8372,"date":"2019-02-01T00:00:00","date_gmt":"2019-01-31T13:00:00","guid":{"rendered":"https:\/\/bxglobal.wpengine.com\/nz\/uncategorized\/construction-cash-flow\/"},"modified":"2022-03-20T17:24:32","modified_gmt":"2022-03-20T06:24:32","slug":"construction-cash-flow","status":"publish","type":"post","link":"https:\/\/stage.buildxact.com\/nz\/blog\/construction-cash-flow\/","title":{"rendered":"How to manage the cash flow of your construction business"},"content":{"rendered":"

\u201cThe root of all evil in the industry is chronic non-payment for jobs,\u201d<\/strong> according to the Australian Subcontractors Association<\/a> in a recent article in the Fairfax papers<\/a>. Nothing new maybe, but construction cash flow is something that\u2019s on everyone\u2019s mind at the best of times. Non-payment is maybe the worst case, but it\u2019s not just that, what about late payment? Non-payment and cash payment have the biggest impacts when it comes to causing construction cash flow headaches for a large construction company or a custom home builder. Learning how to manage cash flow will help set you up for long-term success.<\/p>\n

\u201cWe\u2019ve come out of a period where there has been so much workaround. Good systems didn\u2019t necessarily come into play then because the next job was always around the corner\u201d the article reads. Good systems are easier to run when you have good software, which has helped most industries achieve massive gains in productivity and risk reduction.<\/p>\n

Construction management software can help avoid negative cash flow<\/strong><\/h2>\n

Construction management software is designed to simplify your residential construction business. Tracking construction cash flow is important and every construction company, big and small, does it in order to be successful and stay in business. It automates and connects all the parts of your business \u2014 like estimating, job management and accounting \u2014 allowing you to be more efficient and profitable.<\/p>\n

Construction management software is key to growing your business. Tracking your business expenses is important to make sure the current cash flow is healthy, meaning more money is coming into the business than going out. Negative cash flow can hold you back from making decisions that fuel growth. Sometimes, especially for custom home builders, negative cash flows are the result of late payments from customers on construction projects. It’s important to know when more money is expected into the business, to inform decisions that help keep it running. A construction business with cash flow problems usually struggles to stand out from the competition, so getting software to help you keep track of the finances will go a long way in setting you up for success.<\/p>\n

Benefits of construction management software<\/strong><\/h2>\n

If you\u2019ve used or are still using Microsoft Excel<\/a>, paper plans, calculator, and ruler to create takeoffs and estimates, there\u2019s a better way. You can start reducing the unnecessary stress of managing multiple jobs or not knowing if you\u2019re making money. Always know if you will have money coming in to continue driving your business forward.<\/p>\n

Save time and frustration by using a construction management software solution that centralizes manual, inefficient processes into a single automated platform.<\/p>\n

An integrated, Cloud-based system saves you flicking between spreadsheets and manually inputting data into multiple systems can lead to mistakes. Sometimes, these mistakes can lead to losing money, which is never a good thing for a small business owner.<\/p>\n

Stop wasting time checking different places to get the needed information.<\/p>\n

For builders and trades in construction, having an integrated solution for estimating, job management, timesheets and accounting will cover 90% of what most companies need. Builders can save hours by making better software choices.<\/p>\n

Some things to consider:<\/p>\n