When it comes to valuing work, generating applications for payment in a timely manner and tracking retentions owed or held by the business, many construction companies are daunted by the paperwork, spreadsheets and organisation required. In some cases with retentions they simply give up, which can lead to writing off money owed to the business. However, construction accounting software can take the time, stress and hassle out of managing applications and retentions.
Let’s compare side by side manually managing these processes with the results of using construction-specific accounting software alongside Sage.
Manual Spreadsheets vs Construction Accounting Software
ManualSoftwareAccuracyRelying on static spreadsheets means key milestones such as payment due dates on retentions can be missed, resulting in disputed payments and lost profits.Software that captures the agreed payment terms on every contract ensures applications are made accurately and on time, so retentions owed or held by the business are never lost.ProfessionalismMany contractors rely on Excel spreadsheets to create the paperwork for applications and retentions, which can look messy and contain inaccuracies.Automating processes ensures uniformity and accuracy across documents, so you can produce professional, branded paperwork with a single click.SpeedIf a client misses a payment date, chasing them with phone calls, emails and invoices is time-consuming and costly.Construction-specific accounting software enables companies to pursue outstanding debts quickly and robustly by having accurate information to hand, resulting in timely payments.TrackingWith complex finances to keep track of, across numerous projects, it can be easy to forget their status when money is due; contractors have lost entire end-of-year retentions due to mislaid paperwork.Construction-specific software gives greater visibility across multiple projects and, crucially, allows you to structure contracts as agreed so payment can be applied for in a timely manner.
Without the right construction accounting software for your business, managing the applications for payment process whilst tracking retentions can cause many problems, take up precious time and cost you a lot of money.
This can be easily avoided by implementing software that suits your business and integrates smoothly with existing systems, improving visibility across projects and ensuring both contractor and client stick to deadlines.
For larger, enterprise-level businesses, applications and retentions can cause even more dramatic issues if not handled correctly. Our enterprise-level cloud solution EVision Construction ERP, built within Microsoft Business Dynamics Central, is our most comprehensive solution enabling companies to manage the entire construction and contracting lifecycle from initial bid, through to site final account.
To see how Construct for Sage can handle Applications and Retentions in action, you can view a recording of our live webinar here.
To learn more about how EVision can benefit your business, click here.
Alternatively, you can arrange a free online demonstration tailored to your specific requirements by emailing us at construction@eque2.com.
