Why AP automation tools are essential for modern construction companies

The challenge of construction accounting

The intricacies of construction accounting go far beyond traditional bookkeeping. Subcontractors deal with:

• Detailed cost-coding: Every expense must be categorized correctly to ensure budgets are tracked accurately sometimes going three levels deep between cost, phase and class codes.
• Triple-verification processes: It’s not enough to confirm an invoice; teams must ensure the order was placed correctly, the price is accurate, and the goods or services align with the order that was delivered.
• Manual workflows: Managing spreadsheets, email threads, and phone calls to reconcile invoices consumes countless hours, increasing the risk of errors and delays.

The result? Teams are spending excessive time on administrative tasks, leaving little bandwidth for higher-value activities like optimizing project spend and planning.

How AP automation transforms the process

AP automation tools like SubBase streamline these manual, time-intensive processes. Here’s how they help:

1. Effortless invoice processing: SubBase uses AI to match invoices with corresponding purchase orders. No more sifting through inboxes or cross-referencing spreadsheets.
2. Real-time reconciliation: Every line item on an invoice is matched against the order, highlighting discrepancies instantly.
3. Customizable approval workflows: Whether it’s a simple two-step approval or a more complex multi-level process, SubBase lets companies tailor workflows to their needs. Everyone stays informed, and no step gets overlooked while keeping the field moving.
4. Centralized visibility: With all purchasing data, field updates, and vendor communications in one platform, teams gain complete oversight of their accounts payable process.

The benefits for construction companies

• Save time: Automating repetitive tasks frees up teams to focus on project execution and strategic planning.
• Reduce errors: Early detection of discrepancies prevents costly mistakes and ensures budgets stay on track.
• Enhance cash flow management: Real-time visibility into invoices and spend allows companies to forecast cash flow needs and identify potential issues early.
• Boost productivity: By eliminating the need for manual tracking, teams can reallocate time and resources to where they’re needed most.

Real results, real impact

JGR Construction shared how SubBase’s automation helped them save thousands of dollars by providing real-time insights and proactive alerts. Financial Controller Vivian Jimenez explains how adopting SubBase has streamlined operations, increased efficiency, and completely transformed its accounting function.

“We can track and make sure we have quotes in place and the information on recent purchases – this saves us hours collectively of time in making phone calls because we have pricing information at our disposal.”

Ready to streamline your AP process?

Subcontractors face enough challenges without getting bogged down by manual accounting processes. SubBase simplifies accounts payable, improves visibility, and ensures you stay ahead of your budgets. Contact us today to learn how SubBase can transform your workflow and support your project’s success.