Construction companies have complicated financial management requirements, particularly related to disbursements for materials, labor, and vendors. Disbursement management processes can be tricky to handle, from managing the payments to ensuring accurate accounting and reconciling transactions. Construction companies have to keep their accounts precise, monitor their cash flow, and maintain transparency with their clients while keeping up with the project’s pace.

Construction disbursement management is all about ensuring that payments are made in a timely fashion, and funds are accurately allocated to the right projects, suppliers, and vendors. With various stakeholders and numerous financial operations, construction disbursement management can be complex, time-consuming, and prone to errors without suitable tools and technology. Fortunately, specialized construction disbursement software can streamline the process by automating workflows, tracking disbursements, and keeping financial information up to date.

Here at Fund Control, we know exactly how challenging it can be so we’ve developed the ultimate disbursement management software for our clients. Call us at 800-625-5972 or simply request to try a free demo to experience our intuitive system

The following are common problems when it comes to managing construction disbursements and their accompanied solutions.

Manual Data Entry & Human Errors

Construction disbursement management involves frequent manual data entry and calculations that are susceptible to human errors. Manually entering data increases the risks of errors that can negatively impact payment accuracy and delay payments.

Solution – Construction disbursement software reduces the risks of manual errors by automating accounting workflows that eliminate manual input. The software automatically calculates amounts, matches invoices, and cross-checks details to ensure accurate and timely payments. This feature increases efficiency and accuracy while decreasing risks that arise because of manual interventions.

Delays in Approvals

Construction disbursement requires approvals from various stakeholders, which can cause delays that impact the project’s schedule. Manual approval workflows require manual document exchanges within the team, leading to delays in approvals.

Solution – Automated construction disbursement software with audit trails can streamline the approval process by allowing a project’s approver to approve transactions from anywhere with internet access. The process can be automated to avoid delays in payment processing, and payment confirmations can be sent to all stakeholders.

Limited Visibility

With multiple projects and suppliers involved in construction projects, construction disbursement can create complexities in tracking and monitoring various disbursement transactions. Without proper software, the construction company will lack visibility into how transactions are being allocated.

Solution – A construction disbursement software that offers advanced reporting capabilities and dashboards that can provide real-time analytics and insights into cash flow, expenses, and payments across projects. This feature can help construction companies stay informed of their disbursements and provide transparency to clients.

Inefficient Billing & Payment Process

Billing and payment processes are time-consuming when performed manually. Construction companies struggle with reconciling payments and ensuring that invoices are fully paid.

Solution – Construction disbursement software automates billing and payment management by automating payment schedules, alerts, and payment processing. By setting up automated payment schedules, the software eliminates payment delays, reduces the time spent on administration, and streamlines payment processing for vendors and suppliers.

Fix Disbursement Problems Today

Construction disbursement management is critical to the success of construction projects, and it’s essential to do it right. Although traditionally construction disbursement management is challenging and time-consuming, especially without the use of software, companies can now automate workflows, streamline communications and approvals, and improve visibility with specialized technology like construction disbursement software.

By efficiently managing disbursements with automated software, construction companies can improve their operations, maintain control of their costs, and ensure timely payment to their suppliers and vendors.