Because of the cyclical nature of the industry, construction companies face a lot of challenges in finding skilled and reliable workers, staying in compliance with contracts and regulations, and figuring out how to turn revenue into profit. While technology can’t help with all of the issues construction companies face, it can help with creating a more sustainable, profitable business during all business cycles.

Separating Spending

The better the payment system, the easier it is to allocate spending to people, projects and equipment. The separation and grouping of various expenses will prove to be helpful in determining how much each task calls for. While the same business account can fund employee purchases, vehicle fueling, maintenance and back office expenses, assigning different cards with different controls to each need will let you keep your expenses in check.

For example, putting all expenses for one vehicle on one debit card allows contractors to see how much fuel it goes through, how often it is maintained and how often it breaks down. This can help companies make better decisions about maintenance, repair and replacement. Additionally, having separate cards for project and back office expenses, even if held by the same person, can give businesses a clearer sense of their overhead costs relative to project costs. This information can help them make better decisions about pricing for new bids.

Subscriptions for different software tools is an expense that affects every aspect of a business but tends to fly under the radar when next to everyday charges, but might be helpful to assign a specific card to. Contractors may be paying for things they have forgotten about or no longer need. Virtual debit cards are an easy way to keep subscription costs contained, organized and trackable. Contractors can dedicate one virtual card for software subscriptions to keep these repeated purchases separate from other company spending. Alternately, they could use one virtual card for each service, then cancel the card when they no longer need that service or to prevent automatic billing after starting a free trial.

Empowering Employees

Employee expenses can be a minefield of trust issues for everyone. Employers need to trust employees to spend money appropriately, especially if using petty cash or a traditional corporate credit card. Employees need to trust that their employers will reimburse them promptly for any expenses that they pay out of pocket. There’s a lot of risk involved on both sides—including construction company owners who meet their drivers every morning at the gas station to top off their vehicles, and drivers who can only afford to buy a gallon or two of gas a day out of their own funds.

Improved digital payments technologies can help eliminate the stress on both sides. Debit cards can be controlled so that employees can only use them as authorized. They can be given the freedom to put gas in vehicles or stop at the hardware store for supplies. Digital payments systems can speed up employee reimbursement as well as allow for simpler payments to vendors.

Because workers represent a company to customers and on jobsites, leadership’s trust in them translates to their being better advocates for the business. The less friction between the owner and your crews, the more they can focus on doing the work and serving the customers who rely on the company’s services.

Matching the Tool to the Job

Construction businesses literally build communities, and that’s important work. Building a business involves paying attention to payment and budgets. New work in financial technology is leading to more tools to simplify management of the people who do the work as well as managing the money. Now is a good time to research new payment systems, bank accounts, and accounting systems to make your business run smoother and give you time to do the work that matters.