Construction Cash Flow Management – Part 3

The first part of this four-part series laid the foundation concerning cash flow. The second part discussed essential components of cash flow and growth. In this part, the focus is on construction-specific software designed for cash flow management for construction contractors. 

Cash Flow Management – The Right Tool

Good cash management doesn’t begin with cash on hand—it starts at the cost budget level. Some costs can be hidden or unexpected in construction, so it’s essential to think everything through from the start to ensure a steady cash flow down the road.

At The Profit Constructors, we guide our clients in using tools like Knowify’s “Plan and Track” to align project management and accounting. By setting up detailed cost budgets within Knowify and connecting them to real-time tracking, our clients can anticipate costs rather than react to them.

Each project milestone, material purchase, and labor hour is accounted for, helping to uncover and plan for those hidden costs before they impact cash flow.

Knowify’s “Plan and Track” feature makes it easy to:

• Map out costs

• Manage contracts

• Follow through on every step

With this approach, our clients make cash flow decisions based not just on today’s cash balance but on the full scope of project expenses – planned and unplanned.

Proactive budgeting at the job level supports smarter cash flow decisions for every construction business. If you’re not using cost budgets to inform your cash management strategy, there is a real likelihood of upcoming trouble.

Cash Flow Management – Knowify and AIA Billing

Knowify offers even more cash flow strength through simplifying AIA billing. Streamlining AIA billing is a matter of keeping cash flow on track.

AIA-style billing is often a standard requirement for contractors working on larger projects, but it can also be a significant pain point. Missteps in this process don’t just delay payments; they can create a ripple effect that jeopardizes your entire cash flow.

That’s why understanding the AIA billing workflow isn’t just about compliance; it’s about control. Properly managing this process ensures you’re:

• Billing for the correct percentage of work completed

• Tracking retainage

• Staying ahead of payment schedules

As you can see, this amount of control directly impacts your bottom line.

This is where Knowify shines. With its user-friendly interface, Knowify simplifies AIA-style billing, helping you generate accurate, professional pay applications in just a few clicks. Automating much of the process reduces errors and enables you to get paid faster, so you can focus on running your projects – not chasing payments.

If you’ve been struggling with AIA-style billing, it’s time to examine your workflow closely. You can ensure your cash flow stays strong and predictable with the right processes and tools.

Ambitious Construction Contractors look to The Profit Constructors to provide advocacy in dealing with:

• Clients and customers

• Employees and subcontractors

• Vendors and service providers

• Governmental entities

Working with The Profit Constructors gives Construction Contractors the means to organize their operations in ways that help them:

• Remain informed

• Avoid hassles

• Reduce risks

• Be future-ready

Ready for action? Or want to know more? Get in touch today to schedule a complimentary discovery call. 866-629-7735