The construction industry has been slow to automate its building processes and back office procedures. Practical limitations on automating building processes have kept most projects on a manual basis. Back office procedures are still handled manually by many construction firms because of the details, documents and timelines that drive the legal, financial and operational aspects of construction projects. The reasons why progress has been slow in automating construction industry practices are the same reasons why it is important that you, the contractor automate your back office processes and procedures. Accounts receivable are the perfect example. Here are some reasons why you should automate your accounts receivable.
IMPROVE YOUR CASH FLOW
If you automate accounts receivable, which should include automated billing and invoicing capability, your cash flow will improve by:
- Invoicing on a timely basis with automated reminders
- Reducing invoicing errors with invoice templates
- Attaching required documents electronically to invoices with work flow capability to avoid delays
- Sending automated reminders and invoice copies to past due customers
- Providing online notes to expedite resolution of invoice disputes and collection problems
- Including online bill payment with a hyper-link on your invoice , so your customer can make payment with a credit card or ACH transfer through a secure payment portal
IMPROVE DOCUMENT FLOW AND FOLLOW-UP
Documents and timelines drive the legal, financial and operational requirements of construction contracts. Automated accounts receivable with work flow gives you the ability to attach and send electronic document copies to construction lenders, general contractors, property owners, lawyers and other parties as needed on a timely basis. The hassle of juggling paper documents and timelines is greatly reduced.
MECHANIC’S LIEN LAWS
Some contractors don’t take advantage of mechanic’s lien laws in their state to protect themselves in the event a customer does not pay. They forego this protection because of the challenge of managing the documents and timelines required to administer the mechanic’s lien process with a manual accounts receivable system. Automated accounts receivable with work flow and automated reminders can reduce this process to a routine administrative task.
IMPROVE EFFICIENCY AND REDUCE COST
The amount of time and effort you and your staff spend billing and invoicing, processing required documents, resolving invoice disputes and errors, and making collection calls can be very considerable and costly. The time and money you save with accounts receivable automation can be spent more productively running and growing your business. Back office operations shouldn’t run your company. They should help your company to run smoothly and grow. Automating accounts receivable is an important step in making your back office work for you.
Automated accounts receivable software, which includes billing and invoicing with work flow, online notes, automated reminders and online bill pay, is available from Lockstep Collect, a leader in the field with a track record of assisting construction firms with billing, invoicing and accounts receivable management. If your firm would like to learn more about how you can automate your billing, invoicing and accounts receivable management, please contact Lockstep Collect at www.lockstep.io.