Build a stronger construction business with cloud accounting and financial automation By Dallas MacCorquodale, CPA, MNP LLP
bers. Even today, this can be time consuming, requiring you to sift through paperwork, input data, chase down invoices,
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Work smarter, not harder” is a common phrase in the construction industry — and it applies to financial management as well.
and finish payrolls. But technology has changed the conversation about how accounts are recorded, from paper ledgers to computerized spreadsheets to today’s cloud accounting and bookkeeping solutions. What makes cloud accounting different and more effective than ledgers and software is the ability to interconnect with other systems. Moving your accounting system into the cloud enables seamless sharing of financial information with your external accountant, your finance team, and other interested parties from any internet connection. It also makes your operations more efficient and effective by breaking down information and system silos. Payroll, accounting, project management, and sales teams historically work under separate systems used independent of the other. This created duplication and a higher probability of errors in your data. Now data can be shared across teams, resulting in increased collaboration, better information, and minimal duplication. Using data to build a better business
Work smarter, not harder. This is a 44 Vancouver Island Construction Association
common phrase in the construction industry, and it applies to financial management as well: automation is at the heart of cloud accounting. By connecting systems such as your payroll, bank account, and project management software, cloudaccounting systems allow significant automation of tedious, time-intensive tasks. While automated functions save you time to focus on growing your business, you still control the approval process. Automated programs such as MNP’s ease accounting and bookkeeping solution enable business owners to establish key points such as setting approval limits, timing, other signatories, and multi-factor authentication. Cloud accounting and bookkeeping platforms also can help you identify opportunities for improvement. By using the insights delivered by the platforms, you can plan your cash flow better. For example, you can use the data to see how long it takes for receivables to be paid by certain customers and better understand what cash flow might look like – and time payments accordingly.
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he basics of accounting haven’t changed in centuries: you still need to reconcile incoming numbers with outgoing num-
In conclusion
By modernizing a company’s financial and operational systems, construction companies save their financial staff time, which they can use to supply better insight into projects, trends, and company key performance indicators to provide tangible value to the company - rather than having them worry about just getting the information into all the various systems correctly. These new opportunities can help you run your business more effectively, saving time and contributing to your bottom line. Dallas MacCorquodale, CPA, is a member of MNP’s Real Estate and Construction team in Nanaimo. Dallas’ services include cloud-accounting implementations, financial process improvement consulting, and forward-looking corporate and personal tax planning and compliance. To learn more, contact Dallas at 250.734.4360 or dallas.maccorquodale@mnp.ca. n
