Stop playing Russian Roulette with your finances

If you are looking at forecasts, budgets, and cash flow that are misaligned and missing parts of the story, you’re not alone. A client of Briq said that, at times, making financial decisions for their business can feel like playing Russian Roulette — never a good thing. But, it’s the truth if you’re making financial decisions without a clear plan or solid information. 

There are so many things that can go astray in the construction process; it’s important to have your finances in order. To do that, you must:

• Connect systems
• Automate processes
• Compile data
• Track spend

That checklist will get you pointed in the right direction, but the following will ensure your success.

Work smarter

Lean into technology. Despite construction’s reputation as unwaveringly old-school, it needs an upgrade. The most important thing to remember is technology alone won’t save your teams from outdated methods; you need a mindset shift to go along with the technological one. 

Firstly, find where hours of your teams’ days go — most likely it’s data entry, searching for information, creating reports. Once you identify the problem you want to tackle, then choosing the right technology is your priority. Involve key stakeholders in the decision-making to ensure you have buy-in from people who can positively influence teams and stubborn individuals. Finally, make sure the tech you choose integrates well with your current tech stack; otherwise, you may be creating more problems than solving them.

Measure your metrics

Use the tech you choose to measure and monitor your metrics and KPIs. Excel is great, but it also is a lumbering piece of tech, easily broken by one out-of-sync cell. When upgrading your financial and business tech stack, you will want to implement something which has dynamic data and can be easily manipulated, all while remaining unbreakable. 

Some of the metrics you should consider monitoring are your rolling forecasts, WIP, contracts, change orders, labor, and costs in excess.

Manage risk

Your company will be better able to manage risk when using technology that can show you patterns, test multiple scenarios, and predict the future. But this all relies on connecting your teams and your systems, so everyone is working with the same information from the same place in real time. With departments across your company having access to all important business metrics, they will be empowered to make the best decisions possible.

Briq is a financial platform that enables construction companies thrive. Learn what Briq can do for your company by speaking with our experts.