Financial Management Systems

Financial management systems allow a builder to keep a close eye on their business. They track everything from performance against plan to the performance of communities, projects and products. They keep everyone on the same page financially. They enable decisions to be made real time on the impact of accepting a deal or a contract.

A strong financial management system allows a builder to be one that the trades wish to do business with. The ability to communicate real time on bids and contract awards, generation of purchase orders to authorize work, approval of purchase orders for payment and any outstanding issues that need to be addressed all contribute to a smooth relationship. The ability to pay on time predictably is the result.

This is when having a Financial Management System fully integrated into a Construction Management System becomes essential.

Financial Systems Map

Bidding & Contracting/Online Vendor Portal

  • Maintain cost history by activity and plan
  • Automatic budget update based upon latest contract information & current costs
  • Automatic creation of house plan proforma at the company level, project level and lot level
  • Real-time tracking of costs against the original budget & latest estimates to complete
  • Electronic bid management enables efficient ability to bid to multiple subcontractors more times per year to ensure costs are under control
  • Capability to bid turnkey, unit-of-measure or both allows for the break down of cost to the lowest level desired
  • Provide an online Vendor Portal, a website for the builder’s subcontractors to be able to access real time bid requests, purchase orders, approved purchase orders, service requests and any disputed items.

Accounts Payable

  • Directly linked with the Project Management module of the Construction Management System, approved purchase orders automatically feed in when superintendents indicate that work contracted for has been completed and is ready for payment
  • This is called “inspection pay” and eliminates the need to match invoices to purchase orders and contracts, and eliminates any risk that an invoice is presented for work not contracted for – great time saver for the both the builder and the subcontractor
  • Creates a “paperless” payment process that is highly efficient

Project Accounting

  • Ability to track direct & indirect expenses to the lot level
  • Ability to associate lots with projects
  • Ability to review lot, project & plan profitability

Multi-company General Ledger

  • Ability to set-up and manage multiple legal entities and projects
  • Ability to manage revenue, expense, loans & cash flow
  • Ability to handle lot/project closings
  • Ability to track loans & loan draws

Financial Reporting

  • Ability to report lot, project and company financial statements
  • Ability to project cash flow
  • Ability to compare actuals to budget

If you would like to see a demonstration of what fully integrated, online, real-time Financial Systems look like, please contact us.