The winter season is typically a tough time for the construction industry and the past few years have brought even more unique challenges. Now, many contractors have an overabundance of work, but not enough employees (or goods) to get the job done—in addition to the traditional issues that can stall work. In the age of labor shortages and supply chain disruptions, the struggle to find the materials needed to complete a project (and get them on time), manage material costs against bids and find labor are having a huge financial impact on businesses. These effects will only be amplified this winter due to packed schedules, volatile supply prices and labor shortages.

Construction business owners should consider ways that back-end financial technology can help keep things moving—including predicting anomalies in supply chain and managing cash flow—as the industry navigates this supply chain and labor crisis. Cloud accounting software could help optimize construction businesses over the next few months through a variety of means including inventory management, payments, cash flow and project management.

Manage inventory

Syncing cloud-based accounting software with third-party apps can help manage inventory and time tracking, allowing construction businesses to stay ahead of any curve balls thrown their way. Such apps can also transfer inventory adjustments such as cycle counts and scrapping inventory over to cloud accounting software to keep contractors’ books up to date.

Separately, many digital tools can complete manufacturing inventory management tasks such as advanced work orders, bills of materials and barcode scanning to save business owners’ time. And with the number of daylight hours reduced to under 12 hours during the winter, it’s essential to incorporate as many timesaving tools as possible to help get the most out of each day.

Speed up payments

Construction business owners should also consider using cloud accounting software to invoice clients and pay subcontractors faster with online invoicing which can help streamline the overall process during the winter. Less manual entry will also lead to a reduction of errors, increased efficiency and accuracy, greater security and cash flow visibility.

Using cloud accounting software also helps contractors track IOUs to know who owes what and when. It also cuts back on manual back-end processes, so contractors can focus on getting the job done instead. On top of having shorter days in the winter, the U.S. Bureau of Statistics claimed approximately 42,000 workers had to take at least one day off due to ice, sleet or snow, making additional time back extremely valuable.

Manage cash flow

During the winter, cash flow can get tight due to project delays. Using cloud accounting software allows business owners to check on cash flow at any time through an online dashboard.

A major benefit of using cloud accounting software is the ability to keep track of a business’s financial health and access up-to-date and real-time insights. A cloud-based general ledger can serve as a single source of truth so business owners can view a snapshot of where the business stands, and create a monthly overview of the business, including earnings, payments and pending financial matters. Most overviews use real-time and historical financial data, which can be especially helpful when making crucial data-based decisions, such as whether to redirect resources toward certain activities when the cold throws a wrench in the plans.

Project management

In addition, using a technology solution that incorporates online project management tools to easily track a construction job during the winter is crucial, because failing to plan is planning to fail. With increased risks and multiple jobs on the go, if businesses do not have solid project management in place, it will run the risk of blowing up their budget and/or completely missing timelines.

Through incorporating an online utility for project management, business owners can leverage their understanding of managing projects and simplify its application. This in turn will save time and allow them to focus on the higher volume of projects in flight this winter. A cloud-based project management tool can also help business owners prepare for volatile variables in each project through tracking costs and profitability, providing quotes and invoices, and seamlessly collecting money for jobs completed.

The most significant benefit of creating a clear-cut online project management plan is better, more sophisticated project tracking. With an online system, contractors be able to track projects phase-by-phase and understand the key variables that have an impact on profitability. Additional benefits include open client communication and real-time project transparency.

To keep their construction businesses viable this winter, contractors should consider leveraging technology as a helping hand.