The modern construction financial workflow

The modern construction financial workflow is ever-changing. Other industries have been able to move to the cloud and work collaboratively across departments, developing stronger business strategies. But with construction finance, forecasting has been impacted by cumbersome spreadsheets and siloed teams. It needs to change. 

However, it’s not as easy as it might be for other industries. Construction is a complex industry, every job has multiple partners and deals ongoing throughout each stage of the project and an individual contract to match. Construction finance is just as unique as it deals with many more moving parts than any other industry. So, when moving to the cloud with the intent to improve financial planning and analysis, the technology needs to be specific so it can work within construction’s flux states.

It needs to be personalized

For example, nothing in construction is repeatable — there’s no formula because every project, every company, every subcontractor has a unique way of getting the job done. When talking with Chad Green, CEO of Bauen Studios, about finding the right formula for financial forecasting, he pointed out, “there are very few solid answers that are standardized across the industry — standardization almost doesn't exist in construction.”

Essentially, few WIPs are the same and so a formulaic approach or a standard set of data points in a program won’t cut the mustard. Personalization when it comes to financial planning software is more than just a calculation or a format, it’s the company’s workflow and process.

Connect systems for stronger predictions

This is bigger than integrations. CFMs don’t need more tech to integrate into their other systems. They need to build a connected network encompassing people, processes, and systems. When one person is inputting data, but another hasn’t accounted for their spent report, and a third is creating a report with bad data, it adds up to a problem. 

The solution is working with an extended financial planning mindset where data is more than a report that was input two weeks ago. Decide how data should be read, understand where it needs to come from, and then implement a platform that enables smart connectivity to start driving real results.

Teams are stronger with collaboration

“Collaboration is a really important part of long-term success, in my opinion,” says Green when sharing with Briq that the extra time it takes to get departments and partners working together is worth it to ensure a project is run correctly. Essentially, improving a company’s financial workflows relies on getting out of the silo and facilitating departments to work effectively together. 

True collaboration allows multiple departments to keep moving forward and continuously improve the plan. It’s the engine driving real results and profit because when teams are collaborating there are fewer misunderstandings and better processes.

Have trust thanks to higher accuracy

Through automated processes and better data management, a business can start engaging in more informed scenario planning. With data fed in from other teams and the machine power to analyze patterns and potentialities, risk assessments can be more thorough and completed quicker.

Automation and accuracy can give peace of mind. Green says that using Briq has given him a lot of trust in his forecasting and planning thanks to the historical information he can access. Furthermore, that “trust helps build the courage to move forward and take bigger steps” because he can trust in the information he’s using.

Close the books in a timely manner

With so many moving parts, changing costs, outstanding orders, and slow reporting, the reality is some companies are only closing out their April books in October. If that’s the case, their forecasting is never going to be accurate because there is no visibility on how projects have gone or are going currently. Without the historical data, the next prediction can’t be made.

The planning cycle needs to be tightened up—quarterly to monthly, monthly to weekly. When that happens, thanks to extended financial planning, made from better processes, collaborative work, and smarter information, a business can start moving faster without massive human interaction. Project managers can assign the right workforce, have the right budget, and it all comes from the data a company already has but isn’t using.

Make it sustainable

Construction companies across the board need to commit to modernization to thrive. But its needs are bespoke. The key is to understand that the right technology can empower teams to build stronger business strategies and achieve sustainable growth. Talk with our construction finance experts to learn what Briq can do for your business.