{"id":24776,"date":"2024-09-05T06:12:44","date_gmt":"2024-09-05T10:12:44","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=24776"},"modified":"2026-01-22T05:18:38","modified_gmt":"2026-01-22T10:18:38","slug":"improving-cash-flow-management-construction-firms","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/improving-cash-flow-management-construction-firms\/","title":{"rendered":"Improving cash flow management: A guide for construction firms"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/construction\/\" class=\"entry-header__link\">Construction<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tImproving cash flow management: A guide for construction firms\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2024-09-05T06:12:44-04:00\">September 5, 2024<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Improving cash flow management: A guide for construction firms\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/improving-cash-flow-management-construction-firms\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/susiecarter\/\">\n\t\t\t\t<img decoding=\"async\" alt=\"\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2019\/07\/Susie-Carter.jpg\" class=\"entry-author__image\" height=\"40\" width=\"40\" fetchpriority=\"high\" \/>\t\t\t\t<span class=\"entry-author__name\">Susie Carter<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n<p>Poor cash flow management is one of the biggest causes of insolvencies for US construction firms. <\/p>\n\n\n\n<p>But while you might feel helpless when clients don&#8217;t pay, there are steps you can take to proactively manage risks and keep control of the health of your construction business. <\/p>\n\n\n\n<p>Read this guide from Sage to find out how to protect your firm from cash flow issues.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-here-s-what-we-ll-cover\">Here&#8217;s what we&#8217;ll cover<\/h4>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-cashflow-in-construction-the-pros-and-cons\" data-level=\"2\">Cashflow in construction: The pros and cons<\/a><\/li><li><a href=\"#h-strategies-for-managing-cash-flow\" data-level=\"2\">Strategies for managing cash flow<\/a><\/li><li><a href=\"#h-manage-cashflow-for-growth-not-business-as-usual\" data-level=\"2\">Manage cashflow for growth, not &ldquo;business as usual&rdquo;<\/a><\/li><li><a href=\"#h-the-problem-construction-still-relies-on-paper-systems\" data-level=\"2\">The problem: Construction still relies on paper systems<\/a><\/li><li><a href=\"#h-advantages-of-using-software-based-systems\" data-level=\"2\">Advantages of using software-based systems<\/a><\/li><li><a href=\"#h-final-thoughts\" data-level=\"2\">Final thoughts<\/a><\/li><\/ul><\/div>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Discover Sage Construction and Real Estate solutions<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Whether in your office or in the field\u2014 get the job done right every time.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-us\/sage-construction\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-6302\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Learn more<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2019\/03\/GettyImages-636056868-1064x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2019\/03\/GettyImages-636056868-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-cashflow-in-construction-the-pros-and-cons\">Cashflow in construction: The pros and cons<\/h2>\n\n\n\n<p>There&#8217;s almost <a href=\"https:\/\/www.statista.com\/topics\/974\/construction\/\" target=\"_blank\" rel=\"noreferrer noopener\">$2 trillion-worth of construction work on the table for US firms <\/a>right now, with investment pouring in to infrastructure, renewable energy, and commercial projects. <\/p>\n\n\n\n<p>It sounds great in theory\u2014but in reality, it&#8217;s only exciting if your clients pay on time, and you can protect yourself from cash flow problems.<\/p>\n\n\n\n<p>In parallel to increasing work orders is an increasing number of bankruptcies in 2024\u2014driven by challenges that just won&#8217;t go away\u2014like inflation, labor shortages, supply chain disruptions, and rising interest rates. <\/p>\n\n\n\n<p>Couple that with evergreen challenges like delayed payments, cost over-runs, under-pricing, high fixed costs, and economic downturns, and you&#8217;ve got a combination that can put the financial security of your business at risk.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-strategies-for-managing-cash-flow\">Strategies for managing cash flow<\/h2>\n\n\n\n<p>The good news is you can protect yourself from financial issues at every stage of the construction lifecycle. <\/p>\n\n\n\n<p>Here are 8 top tips to help you get ahead:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-1-to-bid-or-not-to-bid-you-decide\">1. <strong>To bid or not to bid? You decide<\/strong><\/h4>\n\n\n\n<p>A critical first step is to decide whether you really want to win specific new work opportunities in the first place. <\/p>\n\n\n\n<p>While numbers look great on paper, the old adage still rings true\u2014turnover is vanity and profit is sanity. <\/p>\n\n\n\n<p>In an industry notorious for low margins, take time to think whether you could cope financially were something to go wrong with a contract. It&#8217;s all too easy for \u201chiccups\u201d to turn profits into losses.<\/p>\n\n\n\n<p>At the same time, resist any pressure to get involved with the all-too-common practice of \u201cunderbidding\u201d or competing for work just to follow in the footsteps of your peers\u2014even when the numbers don&#8217;t add up.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-2-manage-high-fixed-costs\">2. <strong>Manage high fixed costs<\/strong><\/h4>\n\n\n\n<p>With skills shortages across the globe, construction labor costs are on the rise. <\/p>\n\n\n\n<p>And that&#8217;s on top of inflation, which continues to drive up the cost of equipment, and materials. <\/p>\n\n\n\n<p>Be cautious about taking on new permanent staff and long-term financial agreements, because any unexpected downturns in work could cause costs to outstrip income, and cause financial distress.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-3-implement-robust-contracts\">3. <strong>Implement robust contracts<\/strong><\/h4>\n\n\n\n<p>The key to great financial management is to ensure that your clients pay on time. <\/p>\n\n\n\n<p>Sounds simple, but construction projects often involve multiple stakeholders, as well as extended payment cycles, which can leave you without the necessary liquidity to cover ongoing expenses.<\/p>\n\n\n\n<p>Whatever the project, make sure you draw up a robust contract with crystal clear payment terms and schedules outlining the frequency of payments and any specific milestones which must be achieved to receive the money. <\/p>\n\n\n\n<p>This is particularly important for contracts involving elements of retention\u2014where a portion of the payment is held back until specific stages are completed, to ensure satisfactory delivery.<\/p>\n\n\n\n<p>Finally, be sure to include penalties for any late payments from clients to deter clients from harming your finances.<\/p>\n\n\n\n<p>But remember, you also have a role to play in maintaining best practice within industry. <\/p>\n\n\n\n<p>It&#8217;s a small world in construction, and reputation matters. <\/p>\n\n\n\n<p>So make sure you practice what you preach and pay your contractors according to agreed terms, too. <\/p>\n\n\n\n<p>It&#8217;s helpful to be known as a company that&#8217;s good to do business with.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-4-proactively-identify-and-manage-potential-cost-over-runs\">4. <strong>Proactively identify and manage potential cost over-runs<\/strong><\/h4>\n\n\n\n<p>Some people say that totally unforeseen events no longer exist because issues are now so common that we should expect them as standard.<\/p>\n\n\n\n<p>For example, we regularly see supply chain issues\u2014such as those linked to initiatives like the &#8220;Build America, Buy America Act,&#8221; which mandates that highly sought-after materials be domestically produced.<\/p>\n\n\n\n<p>And then there&#8217;s the regular freak weather events, failed deliveries, and challenges linked to labor or skills shortages.<\/p>\n\n\n\n<p>Without foresight and careful management, these issues can turn profits into losses and create a domino effect that could end in insolvency. <\/p>\n\n\n\n<p>Make sure you build in contingencies to cover operational hiccups\u2014like setting money aside to deal with things like \u201cno shows\u201d by specialist subcontractors.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-5-don-t-forget-the-day-to-day\">5. <strong>Don&#8217;t forget the day-to-day<\/strong><\/h4>\n\n\n\n<p>It&#8217;s all too easy for seemingly minor expenses to add up and compound into serious overspends over a year. <\/p>\n\n\n\n<p>Don&#8217;t get caught out, be vigilant on all expenses, as well as issuing and processing your invoices.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-6-keep-an-eye-on-the-big-picture\">6. <strong>Keep an eye on the big picture<\/strong><\/h4>\n\n\n\n<p>While the market is booming right now, nothing lasts forever, and we live in unpredictable times. <\/p>\n\n\n\n<p>Keep an eye on news of any impending economic challenges like recessions which can signal potential reductions in demand for construction services. <\/p>\n\n\n\n<p>To be forewarned is to be forearmed.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-7-manage-debtors\">7. <strong>Manage debtors<\/strong><\/h4>\n\n\n\n<p>The <a href=\"https:\/\/www.fiscal.treasury.gov\/prompt-payment\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">1982 Prompt Payment Act<\/a> was implemented to ensure that subcontractors are paid fairly and on time for their work while allowing the main contractor to maintain oversight and control over the project&#8217;s quality and progress.<\/p>\n\n\n\n<p>Nevertheless, issues still happen. <\/p>\n\n\n\n<p>Prevention is often better than cure in managing debtors, so avoid potential issues by taking note of warning signs\u2014like subcontractors consistently presenting delays with sourcing materials, providing appropriate staffing, or delivering work on time.<\/p>\n\n\n\n<p>When problems do arise further down the line, it can get more difficult. When a client refuses to pay you, get ready to be firm to recoup the money you&#8217;re owed.<\/p>\n\n\n\n<p>Maintain fair relationships by following your agreed dispute resolution process\u2014and if that fails, don&#8217;t be afraid to escalate to the small claims courts. <\/p>\n\n\n\n<p>They usually take care of disputes involving up to around $25,000, but this differs by state.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-8-establish-a-line-of-credit\">8. <strong>Establish a line of credit<\/strong><\/h4>\n\n\n\n<p>For many construction firms, it makes sense to have a \u201cback up\u201d credit line to cover any short term squeezes on cash.<\/p>\n\n\n\n<p>Speak to your bank and financial institutions about whether you could access a low interest loan to use in the event of major problems. <\/p>\n\n\n\n<p>That way, you could avoid the risk of tying up all your cash on one-off expenditures that don&#8217;t generate a return.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-manage-cashflow-for-growth-not-business-as-usual\">Manage cashflow for growth, not \u201cbusiness as usual\u201d<\/h2>\n\n\n\n<p>The \u201chorror stories\u201d of poor cashflow management are well-documented.<\/p>\n\n\n\n<p>But what&#8217;s discussed less frequently is the missed opportunity cost of staying behind the curve. <\/p>\n\n\n\n<p>Managing finances is an essential discipline and shouldn&#8217;t be considered as a competitive advantage. <\/p>\n\n\n\n<p>But if your competitors get armed with accurate, efficient, and real time data, and you don&#8217;t, you&#8217;re going to be playing catch up for a long time, rather than getting ahead.<\/p>\n\n\n\n<p>Advanced companies are moving their finances online, freeing up time to spend on value-add activities. <\/p>\n\n\n\n<p>They&#8217;re busy connecting and integrating all relevant applications like SalesForce, for complete visibility of all transactions across their organizations.<\/p>\n\n\n\n<p>Do you really want to be left chasing pieces of paper?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-problem-construction-still-relies-on-paper-systems\">The problem: Construction still relies on paper systems<\/h2>\n\n\n\n<p>Rabbet&#8217;s 2023 Construction Payments Report found it costs $273 billion to carry forward the fees and costs associated with slow payments.<\/p>\n\n\n\n<p>In addition, it found that nearly 14% of total construction costs could be eliminated with faster, more reliable payments to contractors.<\/p>\n\n\n\n<p>But according to pymnts.com, <a href=\"https:\/\/www.pymnts.com\/digital-payments\/2024\/75percent-companies-still-use-paper-checks-despite-high-cost\/\" target=\"_blank\" rel=\"noreferrer noopener\">75% of Companies Still Use Paper Checks<\/a>\u2014which shows that industry is still reliant on legacy processes and infrastructure.<\/p>\n\n\n\n<p>Using paper-based systems to manage finances can lead to several significant risks, including:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-1-incorrect-data-and-errors\"><strong>1. Incorrect data and errors<\/strong><\/h4>\n\n\n\n<p>Paper-based systems rely on manual effort, where it&#8217;s easy for human error in areas like data entry and miscalculations. <\/p>\n\n\n\n<p>These mistakes then inform inaccurate records\u2014with a domino effect that your financial records are wrong.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-2-wasting-time-and-resources\"><strong>2. Wasting time and resources<\/strong><\/h4>\n\n\n\n<p>There is an immediate cost in terms of time, labor, and money of carrying out low-value and administrative manual tasks. <\/p>\n\n\n\n<p>Not only that but in the long term, it reduces productivity and results, while potentially delaying critical financial decisions.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-3-poor-flexibility\"><strong>3. Poor flexibility<\/strong><\/h4>\n\n\n\n<p>Modern construction firms are agile, working seamlessly across multiple sites and offices. <\/p>\n\n\n\n<p>But with paper systems, based at a single location, you&#8217;re restricting people from working in a remote, decentralized or flexible way, which slows down operations.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-4-poor-security\"><strong>4. Poor security<\/strong><\/h4>\n\n\n\n<p>By definition it&#8217;s hard to get a truly secure system for paper records, putting your essential documents at risk from fire and water damage as well as theft and data breaches.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-5-limited-business-insight-to-drive-growth\"><strong>5. Limited business insight to drive growth<\/strong><\/h4>\n\n\n\n<p>Why make it even harder than it needs to be to complete audits? <\/p>\n\n\n\n<p>No one wants to spend more time than they need to sifting through physical records to find relevant information. <\/p>\n\n\n\n<p>Especially when you could avoid this by using a software-based system.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-6-out-of-date-information\"><strong>6. Out of date information<\/strong><\/h4>\n\n\n\n<p>Paper based systems can&#8217;t update themselves &nbsp;so you&#8217;re always going to be on the back foot, inputting data and making decisions retrospectively.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-7-environmental-harm\"><strong>7. Environmental harm<\/strong><\/h4>\n\n\n\n<p>As a business, it&#8217;s really not a good look to be reliant on deforestation and large amounts of waste associated with paper systems. <\/p>\n\n\n\n<p>Not only that but storing paper can be expensive compared to digital solutions.<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Sage 300 Construction and Real Estate management software<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>The market leader in end-to-end construction and property management software.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-us\/products\/sage-300-construction-and-real-estate\/#gate-a31f3ed2-53bb-4dce-953c-6b6be1709e7f\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-4208\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Watch a demo<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/crane-above-city-1064x810.jpg\" class=\"single-cta__image\" alt=\"crane above city\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/crane-above-city-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-advantages-of-using-software-based-systems\">Advantages of using software-based systems<\/h2>\n\n\n\n<p>Using cloud-based accounting systems for financial management enhances accuracy, efficiency, security, sustainability, and strategic decision-making. <\/p>\n\n\n\n<p>You can manage risks any time, anywhere, securely.<\/p>\n\n\n\n<p>So, it&#8217;s perhaps no surprise that, according to pymnts.com, around <a href=\"https:\/\/www.pymnts.com\/tracker_posts\/from-the-ground-up-rebuilding-payments-in-the-construction-industry\/#:~:text=According%20to%20PYMNTS%20Intelligence%20research,virtual%20cards%20for%20supplier%20payments.\" target=\"_blank\" rel=\"noreferrer noopener\">30% of construction businesses are aiming to use digital technologies to speed payments.<\/a><\/p>\n\n\n\n<p>Here are 7 ways software systems can help construction companies to manage the flow of cash:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-1-maximize-accuracy\"><strong>1. Maximize accuracy<\/strong><\/h4>\n\n\n\n<p>Design out the potential for human error by using systems that automate calculations and data entry processes. <\/p>\n\n\n\n<p>This will result in more accurate cash flow data, reducing any potential discrepancies that can arise from manual handling.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-2-get-real-time-data-and-insights\"><strong>2. Get real time data and insights<\/strong><\/h4>\n\n\n\n<p>Get on the front foot with real-time updates and analytics about your transactions, which will help you respond quickly and effectively to financial challenges. <\/p>\n\n\n\n<p>With <a href=\"https:\/\/www.sage.com\/en-us\/sage-construction\/\" target=\"_blank\" rel=\"noreferrer noopener\">advanced software systems<\/a>, specifically designed for the construction industry, you&#8217;ll also get advanced reporting and analytics tools which help you to identify patterns, predict future access to funds, and make data-driven decisions to drive business growth.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-3-save-time-and-money\"><strong>3. Save time and money<\/strong><\/h4>\n\n\n\n<p>Focus on more strategic activity by automating routine management tasks like invoicing, payments, and reconciliations.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-4-maximize-security\"><strong>4. Maximize security<\/strong><\/h4>\n\n\n\n<p>Protect your business intelligence via sophisticated security measures like encryption, user authentication, and access controls. <\/p>\n\n\n\n<p>A far cry from the basic\u2014and arguably, inadequate\u2014traditional methods like locked filing cabinets and offices.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-5-simplify-the-audit-process\"><strong>5. Simplify the audit process<\/strong><\/h4>\n\n\n\n<p>With all documentation stored online, you can simply download records to create a robust audit trail that complies with regulatory requirements.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-6-support-business-growth\"><strong>6. Support business growth<\/strong><\/h4>\n\n\n\n<p>It&#8217;s easy to scale software systems so you can cope with extra business. <\/p>\n\n\n\n<p>You can also integrate other relevant applications used within your business such as payroll and sales systems to create a single, accurate source of data across your business.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-7-environmental-benefits\"><strong>7. Environmental benefits<\/strong><\/h4>\n\n\n\n<p>Be a leader, not a dinosaur, on protecting the environment. <\/p>\n\n\n\n<p>Now&#8217;s the time to get rid of paper, and the need for expensive storage, once and for all.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-final-thoughts\">Final thoughts<\/h2>\n\n\n\n<p>The US construction industry is not a place for the faint-hearted\u2014with huge risks as well as opportunities ahead. <\/p>\n\n\n\n<p>It\u2019s going through change that will decide winners and losers\u2014so the big question is: will you choose growth and success, or is it business as usual?<\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Poor cash flow management is one of the biggest causes of insolvencies for US construction firms. Read Sage&#8217;s top tips to avoid risks.<\/p>\n","protected":false},"author":870,"featured_media":8982,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[404],"tags":[192,180],"business_type":[],"lilypad":[],"context":[],"industry":[50],"persona":[98,97],"imagine_tag":[246,468,233],"coauthors":[800],"class_list":["post-24776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-construction","tag-construction","tag-construction-financial-management","industry-construction-and-real-estate"],"sage_meta":{"region":"en-us","author_name":"Susie Carter","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-521696036.jpg","imagine_tags":{"246":"Construction","468":"Grow your business","233":"Medium Businesses"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/24776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/870"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=24776"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/24776\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/8982"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=24776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=24776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=24776"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=24776"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=24776"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=24776"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=24776"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=24776"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=24776"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=24776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}