Contractors have to handle numerous and complex administrative functions, which come with a high risk for errors that can impact construction firms' bottom lines.
Automating accounts payable processes is imperative, even for smaller firms, as specialized software packages can be customized to address unique requirements and are capable of performing many different accounting functions, notes Darlene Moore, the vice president of finance for the general contracting firm WIMCO Corporation, in an article for Building Design + Construction Magazine. Accounts payable departments can implement duplicate payment audit software to reduce the risk of errors.
Moore noted that WIMCO uses document imaging technology that enables all invoices, checks, subcontractor contracts and change orders to be scanned into its computer system, which facilitates communication amongst partners and collaborators. For example, a contract can email invoices as a PDF file to the project superintendent, who can then apply a computer signature stamp. This boosts operational efficiency, as opposed to sending paper documents back and forth.
Additionally, contractors can minimize the impact of errors by hiring an accounts payable recovery audit firm to identify and recover lost profits as a result of errors.