Day-to-day changes in construction technology may not be apparent to people outside the industry, but those who spend their days on the job site know precisely how these innovations are changing the field. Best-in-class construction companies are at the forefront of the technology revolution and are poised to see significant improvements in 2019. Accounts payable automation is just one of the technology trends saving the construction industry with improved payment visibility and mobility without additional labor.
While construction companies face unique challenges on every project, modern technologies are making those difficulties easier to overcome. Field mobility and distant communications can become concerns of the past, as a new wave of technology designed exclusively for the construction industry promises to alleviate—if not diminish—these issues.
Accounts payable automation and payment solutions offer distinct benefits for construction industry leaders, including:
- Approval of eInvoices and payments anytime, anywhere you have an internet connection
- Assigning an ad-hoc approver when you’re out of pocket
- Ability to attach photo documentation in real-time
- Managing job costs, change orders, and compliance documents from the field as needed
- 24/7 visibility into and control over your cash flow
Implementing AP automation gives you and your suppliers access anytime to check payment status and update account information. Giving suppliers control and visibility into their receivables builds transparency and trust for a robust and collaborative relationship. As other markets rapidly embrace these digital tools, forward-thinking construction companies that adopt AP automation can carve a respected space within the industry and distance themselves from the competition.
Anytime, Anywhere Access
One constant in construction, whether you are a general contractor, subcontractor, or developer, is a plethora of bills and payments. Manually handling paper invoices and checks can become a full-time job, even for smaller companies. For those overseeing large projects or multiple ongoing jobs at the same time, it may require an entire department.
In the past, businesses had to manage accounts payable through inefficient processes. Invoices would arrive in the mail from suppliers. Then the invoices would have to be matched to an expected job cost, verified, and queued to pay. Checks would be printed, a manager or executive would sign the check, and it would be sent off again, via snail mail, to pay the bill. This process is slow, expensive, and cumbersome—but it doesn’t have to be.
Modern accounts payable systems use advanced matching and digital payments to automate payment processes. These systems allow businesses to lower processing costs, decrease late payments, capture payment discounts, avoid duplicate payments, and better track the end-to-end process from expense to pay.
Accounts payable automation solutions from AvidXchange take the sending and approval process for an invoice from 28 days to two or three. It eliminates manual and error-prone processes like data entry. The industry average cost to manage a paper invoice is $14.89, and the average cost for a paper check is $7.15. With automated AP solutions from AvidXchange, that drops to $1.50 per invoice and $0.68 per payment— massive savings.
With AP automation in place, you can redirect your office staff to handle more valuable business tasks and focus on further process improvements, rather than spending time following up with people, matching invoices and mailing paper checks. These teams can even help implement and oversee other technology advances you’re pushing your business to adapt. For example, thanks to partnerships with companies like GCPay, general contractors are improving their cash flow management and productivity by controlling their full end-to-end project lifecycle all in one place.
Your competitors are not waiting around to see what happens next. Millions of construction professionals log in to ERPs like Sage or Viewpoint each day; job site managers are using their phones to send updates to their bosses; CFOs and controllers gain real-time visibility into cash flow, accurate reporting, and cost savings from paying on time, and automated AP processes are making paper invoices and checks relics of the past.
No longer is new technology relegated to consumer markets. By implementing these innovations, you can secure a leadership position within the industry.
AP Automation: The Bottom Line
Project managers, controllers, and CFOs can all benefit greatly from accounts payable and payment automation, saving time and increasing productivity in the process. In addition to improving efficiency through streamlined and automated workflows, construction professionals can:
- Better manage costs through visibility into their cash flow and invoices 24/7
- Increase employee output and satisfaction through anywhere, any time access from any location with Wi-Fi via your connected device
- Scale for growth by implementing automation to mimic the current process and improve the routing and approval steps
Schedule a Demo Today!
AvidXchange takes the paper-based business processes your company has in place and turns them into an automated workflow system that gives you the visibility and control needed to take your AP team to the next level. We help more than 5,500 mid-market organizations receive, approve, and pay their invoices more efficiently.
Interested in automating your payables and creating efficiencies for your AP team? Schedule a meeting with an AP automation expert to learn how you can increase productivity and grow your business. Our construction sales lead will create a customized demo and in less than 30 minutes, walk you through the streamlined workflow of the accounts payable automation process.
To schedule your demo, click here!