Document Management for a Paperless—and Efficient—Office

More and more contractors are turning to document management solutions to become a paperless office. While a lot is discussed about document solutions, what specifically can they do for construction firms? Knowing this will help contractors better understand what document management can do for their business and whether it is worth the investment.

Employee Maintenance

Document management can help in many areas, including managing employees. Managing employees is tough business, and one reason is the amount of paperwork associated with each employee, which needs to be stored. Document management can help ease that burden.

For example, a foreman wants to verify whether a particular employee has the proper license to operate heavy machinery. He calls the main office and asks if they could pull up the employee’s record and check. If the company kept paper records, they might have to sort through binders of information or files. This is where document management comes in.

With a document management system tied to the company’s accounting platform, contractors can upload documents and attach them to employees’ records and have instant access to all employee documentation, including licenses

Billing

One of the biggest downsides to paper is that it keeps piling up. As businesses grow, more and more documentation needs to be stored. Document management will free up space and allow employees to be even more productive.

One area where it can help is billing. Contractors encounter multiple change orders. They may forget to bill for change orders, especially if the signed changed orders are not stored efficiently. Document management can streamline the process by storing all signed change orders in the system and attached to their respective jobs. Contractors can pull up a change order instantly to ensure that all work performed is billed.

Accounts Payables

Document management plays a big role in accounts payable. Contractors must manage and track invoices efficiently. With a document management solution tied with construction accounting software, that task becomes easier than ever.

Typically, when contractors get an invoice, the accounts payable department sends a physical copy of the invoice to a project manager or another individual to verify whether the goods were received. Once payment is authorized, the invoice is copied and filed by vendor or job number.

With a document management/construction accounting solution, the process changes. Now when the accounts payable department receives an invoice, it is uploaded into the system. Multiple invoices can be uploaded, entered into the system with all of the relevant information, job number, purchase order number, category, phase, etc. Project managers can view invoices from within the construction accounting system. Once viewed and approved, the payment can be sent out.

With more and more documents stored digitally, more time, money, paper and space is saved. Contractors will save time filing and searching for certain documents. Everything is in the system and can be accessed in minutes. Not having to store paper documents will free up physical space in the office. Now the question is what to do with the extra room?