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Now more than ever, with the rise of AI, construction companies are embracing new technologies that are transforming the landscape of construction finance. However, transitioning to these technologies requires careful consideration. The challenge often lies in not knowing where to begin or which solution is the right one for your company. This uncertainty can lead to delays in the adoption process, which, considering the impact on profitability and operations, is a significant concern. CFOs leading these updates must strive for precision in their technology choices to support future initiatives.
Audit your current processes for clarity
Before diving into technology adoption, it's essential to audit your current processes. Understand how your company operates and how you want it to work in the future. This foundational step provides clarity and sets the stage for effective technology integration.
Fortunately, the path to finding the perfect technology fit has never been clearer. As industries across the board transition into the digital age, valuable insights have emerged regarding how to make this shift, identify opportunities, and pinpoint the most suitable solutions swiftly and accurately. In this article, we'll present five things to assist construction CFOs in selecting the best tools for their organizations.
Personalized: Tailoring solutions to your unique needs
One of the primary reasons construction lags in technology adoption is the inherent complexity of its processes. Construction finances differ significantly from other industries, and even within the industry, each company approaches forecasting, work-in-progress (WIP) management, and cash flow differently. This diversity creates an opportunity rather than a challenge, particularly with AI in the picture. AI can analyze vast datasets and tailor solutions to unique needs, ensuring a personalized approach. CFOs can advocate for AI-powered, personalized solutions that align with their specific needs. Prioritizing AI-driven personalization allows for greater flexibility and utility, enabling customization of workflows, automation, and financial processes to suit your business perfectly.
Collaborative: Breaking down communication barriers
Construction often struggles with communication silos, hindering collaboration among departments. These silos can lead to process delays, reduced efficiency, and overlooked change orders. In some instances, managers seeking process improvements may struggle to pinpoint the source of these delays. AI, with its real-time data analysis and predictive capabilities, can be the solution to collaboration confusion. AI-driven tools connect and align teams seamlessly. CFMs should seek AI solutions that enhance communication and collaboration, fostering employee buy-in and improving overall productivity, efficiency, and operational clarity.
Connected: Ensuring access to accurate data
While collaboration tools are a step in the right direction, ensuring everyone is on the same page is crucial. Frustrations often arise when on-site teams access different data from office-based teams. AI, with its data integration and analysis capabilities, can bridge these gaps effectively. Prioritizing AI-driven connectivity yields significant results when adopting new technology. Whether through cloud-based solutions or automation tools that consolidate information using algorithms, enhancing accessibility leads to efficiency gains of up to 61%. CFOs should invest in AI-powered software that intelligently collates project, finance, operations, and people data into a unified platform.
Timely: Streamlining financial processes
Construction's financial pipeline can be slow, relying on information that's often two months old. To keep the business informed, financial departments put in significant effort, but operational bottlenecks may persist due to outdated tools. AI, with its ability to process and analyze data rapidly, can be a game-changer. CFOs should seek AI-driven solutions that simplify processes and reduce repetitive tasks. Automation and AI analytics can help, allowing teams to focus on analysis and verification, enhancing employee satisfaction and adding more value to the business. For example, you can allow AP automation to handle the data entry process for you, or use AI analytics to update your forecasts. When searching for technology, aim to leverage AI to simplify and streamline existing processes rather than adding new ones.
Accurate: Ensuring precision in financial data
Accuracy is paramount in construction finance, and AI can play a crucial role in ensuring it. Automation can ensure less human error in your data as algorithms can process vast amounts of data with a high degree of accuracy, reducing errors in financial reporting and analysis. CFOs should prioritize AI-powered tools that can identify discrepancies in financial reports, automatically reconcile accounts, and predict potential financial errors before they occur, enabling more informed decision-making and financial management.
A platform built for the industry: Briq
Following these guidelines can set CFOs on the path to successful technology investments. Seek companies that understand the construction industry's unique needs and align with your key goals. That's why Briq was founded by construction, for construction, with all the tools we've discussed here. Briq is a financial automation platform designed to help construction companies thrive. Our principles, as outlined in this article, guide our platform's development. To learn more about what Briq can do for your business, schedule a call to talk to our team at briq.com/demo.