Accounts receivable automation in the construction industry is like the scaffolding that supports a building under construction.
Just as scaffolding streamlines the building process by providing structure and efficiency, AR automation streamlines financial processes, ensuring invoices are sent, tracked, and paid with the precision and timing of a well-oiled machine.
This foundational support not only elevates your business’ financial health but also ensures that your cash flow remains as steady and reliable as the projects you build.
Laying the Foundation: What is Accounts Receivable Automation in Construction?
Accounts receivable (AR) automation serves as the digital backbone of your receivables management. Much like how modern tools have revolutionized building processes, AR automation has modernized how companies manage payments from clients.
By automating invoicing, payment reminders, and collections, accounts receivable automation software allows construction companies to focus on laying bricks rather than tracking bills, leading to more efficient operations, reduced errors, and improved cash flow.
Looking to learn more about accounts receivable? Check out our comprehensive AR guide.
7 Key Benefits of Accounts Receivable Automation for Construction Firms
Now that we’ve covered the basics of what AR automation is and how it works, it’s time to discuss how it benefits construction companies.
1. Faster Invoicing, Quicker Payments.
Construction's infamous payment delays are no match for AR automation. It accelerates invoicing, reducing the time it takes for money to start flowing back into the business.
2. Better Cash Flow.
Research indicates that adopting AR automation can significantly reduce a company’s average days sales outstanding (DSO) by about 32%, injecting vital liquidity to help keep your projects on track without financial hiccups.
3. Accurate Financial Data.
Say farewell to manual errors. AR automation ensures your financial data is accurate and reliable, essential for managing large budgets and planning future expenses.
4. Efficiency Gains.
Automating financial tasks saves valuable time and resources, allowing your team to concentrate on project delivery and operational excellence.
5. Improved Compliance and Security.
Automation helps maintain high standards of financial compliance and data security, protecting sensitive information and ensuring operations meet industry regulations.
6. Stronger Client Relationships.
Accurate and timely billing helps maintain positive relationships with clients, reducing disputes and building trust.
7. Real-Time Insights.
Immediate access to financial information enables informed decision-making, better budget control, and smarter resource allocation.
Centime’s AR Automation for Construction Companies
Centime is transforming financial management for construction teams, addressing challenges like delayed payments and tracking inefficiencies.
Our AR automation not only streamlines billing, but also handles change orders, and ensures prompt application submissions, to improve your cash flow and supplier relations. Get paid faster with our AI-driven collections process and user-friendly customer payment portal, and make better business decisions with our advanced forecasting.
By integrating seamlessly with major construction ERPs like NetSuite, Sage, and QuickBooks Online, Centime ensures a cohesive and efficient financial management experience, freeing up your construction team to focus on delivering exceptional project outcomes.
Want to learn more? Click the banner below to try Centime for free.
