Skylines are changing, and around every corner a new construction project is underway. Companies need to be more efficient, spend wisely and allocate resources strategically to get jobs done. While efficiency is key, streamlining back-office processes often gets put on the back burner when the focus is on a jobsite.
Construction companies like you can gain efficiencies by implementing strategic technology offerings. Implementing an automated purchase-to-pay solution can help increase productivity, decrease risk, and provide better visibility into cash flow. Without adding headcount, you can free up the time employees spend on paperwork, allowing them to focus on larger impact goals.
Here are three ways automating the accounts payable (AP) process helps you put more focus on projects, profits, and productivity.
1. Maximizes Efficiency
Time is a limited resource, and spending time reviewing invoices along with printing, signing and mailing checks leaves less time to focus on business strategy. Automating your AP can create efficiencies by streamlining the invoice approval process and providing transparency in the payment flow to reduce risk, obtain better payment terms with vendors, and deliver projects on time.
AP automation also allows your AP department to spend more time on value-added functions like scheduling payments to meet your cash flow needs, capturing early payment discounts and ensuring vendor compliance.
2. Provides Better Visibility and Increases Controls
Automating the AP process doesn’t mean giving up control of what is happening with company dollars. With automation, you have increased visibility and greater control by having immediate access to review, code and approve account information, even from a mobile device.
When invoices and payments are sent, received, and managed electronically, the risks of missing invoices, fraud and late payments are reduced. With more visibility into cash flow, you can make better, data-driven decisions.
3. Protects Vendor Relationships
Paying vendors on time, securely and via the method they prefer is key to cultivating a successful relationship. Paper-based payment processes can take weeks if not more to process, print, sign, and mail checks. AP automation allows you to process invoices faster and more accurately in order to pay vendors on time.
What the future looks like…
We are always striving to help our construction clients focus more on the job and less on the paperwork. With that, I’m excited to announce that AvidXchange and Core Associates, the makers of TimberScan® and Core Cloud Systems, have partnered together to deliver a complete accounts payable experience for the construction industry. The joint offering provides a full purchase-to-pay solution for Sage 300 CRE and Sage 100 Contractor users, delivering greater control over invoice and payment approvals, faster payments for vendors, and higher rebate potential to offset cash flow challenges.