Accurate financial forecasts are critical to managing cash flow, setting realistic goals and budgets, and guiding essential decisions that help sustain and grow construction businesses. But, creating them is not always an easy task for construction finance managers (CFMs).
CFMs confront unique challenges when tackling the often time-intensive financial forecasting process, including identifying and accounting for project fade, burn rates, and backlogs associated with their industry.
Finance teams within construction firms are under steady pressure to improve their firm’s performance while also reducing costs, and they are often encumbered by processes and systems that don’t always integrate or make data easily accessible. What’s more, they are likely disconnected from those who run core business units, which leads to a lack of insights into key business drivers, and ultimately a not so accurate forecast.
The good news is, technology, along with best practices, can solve these problems.
Here are 5 tips