Material invoice reconciliation is a significant challenge within construction. The time taken looking for documents and excessive manual data entry leads to a bottleneck in the purchasing process, hindering the ability to track costs against budgets in real time, affecting vendor and field-to-office relationships.
From large-scale companies to mid-sized contractors, manually matching paper invoices with corresponding purchase orders and delivery tickets can take hours or even days, passing through multiple hands before it is finally reflected on the accounting front. This tedious and manual workflow can lead to errors and misallocated line item costs , further delaying the reconciliation process, budget updates and supplier payments.
The only way to manage invoice reconciliation is to reduce the steps involved and limit the amount of touches per invoice. Through a workflow in SubBase the process is streamlined, and what could typically have taken 6-8 weeks can now be managed in real time.
The SubBase workflow reduces reconciliation into three steps: automatically capturing an invoice and reconciling the invoice against a purchase order, triggering a custom approval workflow, and syncing it into your accounting system.
Automated parts of the reconciliation process improve efficiency and enhance the ability to accurately forecast and manage cash flow, a critical aspect for subcontractors, who often face delays between purchasing materials, tracking deliveries, and receiving invoices.
One of the biggest friction points for any accounting team is the manual transfer of data into the system along with the lack of field visibility. SubBase allows for full visibility in real time to the field purchasing and the platform’s seamless integration with existing accounting systems automates the data transfer process, eliminating the risk of human error and allowing accounting teams to manage real-time budget reporting and forecasting with full control. And it does all this without you having to change your existing workflow, saving you hundreds of hours per year of manual data entry and helping ensure costs are properly coded to their respective budget line items.
Proactive job management and strategic planning:
SubBase can return the time spent on manual data entry, allowing team members to take on proactive job management and strategic decision-making.
SubBase allows for seamless workflow management between projects. Instead of relying on fragmented communication tools like email, text, and Excel, SubBase centralizes all information to track project progress and budgets in real-time. These tools reduce inefficiencies and data silos that are inherent in traditional processes.
Building better relationships:
The material procurement process, whether at the subcontractor level or the general contractor level, is heavily relationship-based. Automated invoice reconciliation through SubBase improves these relationships by streamlining the process, increasing visibility and ensuring timely vendor payments.
Traditionally vendors are the last to be paid. SubBase helps expedite this entire process, improving the financial relationship for all parties by
Where manual data entry processes can delay payments, SubBase ensures vendors see faster and more reliable payments by streamlining from the start. This is a critical aspect of maintaining and strengthening vendor-subcontractor relationships.
Bridging the gap between field and office:
By reducing the time taken with manual data transfers, there is greater cohesion between the field and office teams. These two groups often operate in silos, which can lead to miscommunication and a lot of frustration.
For field teams, the primary concern is the status of their materials—where they are, when they will arrive, and whether there are any issues from the vendor. SubBase provides:
By improving invoice reconciliation timelines and general communication, you can bridge the gap between field and office teams, fostering a stronger and more efficient relationship leading to better project outcomes and a more connected workforce.
A lack of visibility for real-time cost management and budget tracking can lead to businesses struggling to keep their head above water. SubBase allows for clear visibility, with instant budget updates and a clear picture of the project’s financial status of which materials play a crucial role.
For larger orders and commitments SubBase can see drawdowns in real time. As orders are processed from the field or the office you can track what remains by line item or cost code. This real time visibility helps prevent budget overruns and ensures that every dollar is accounted for.
You can run reports in SubBase to see what vendors are owed, what remains on certain line items, and the status of your commitments. This level of detail and accessibility was previously only possible through custom excel spreadsheets and an extremely manual process. SubBase streamlines this by offering:
This comprehensive visibility ensures that you are always informed and can make strategic decisions based on accurate and up-to-date information. This not only improves financial management but also enhances overall project efficiency.
Invoice reconciliation in construction is challenging due to the time-consuming manual data entry, causing delays and errors. SubBase automates the process, saving time, improving cash flow management, and enhancing vendor relationships, ensuring timely payments and efficient project management.
