Cashflow. The problem of every builder who wants to know what their cashflow is going to be like in the next 6 to 12 months. How do you even come close to estimating your cashflow requirements when circumstances change almost daily.
Ever had to prepare a cashflow forecast for a building company when all you have are manual construction programs and purchase orders? The usual method is building up a spreadsheet where you need to enter the forecast months that revenue is due from each job and estimate the % of costs associated with that revenue coming in. Of course, in real terms the expenses lag behind the income on most residential jobs unless you are running a "% complete" contract and then the revenue lags behind the costs except for the 30 day accounts. Sound familiar. As soon as you get the spreadsheet completed, the circumstances change, the BA on one job is late, the contractors haven't turned up on another job and you are waiting for some materials to arrive on others. Every day there are updates and changes to the schedule that make any cashflow forecasting frustrating and time consuming.
A solution that provides for 'real time' cashflow forecasting with 'real' costs and 'real' dates and doesn't require anyone in the team to do anymore work.
Cashflow with ease
What if you had a solution that linked every important task, that is one that generates a cost or some revenue, to the purchase order and took into account the trading terms for that item such as 14 days or 30 day payments?
There is such a software solution that can create 'real time' cashflow forecasting.
Homefront construction software has a really 'cool' feature that forecasts revenue and expenses on all or just one construction project with 'real' costs and 'real' revenue without the hassle of hours of data entry and frustration.
Contact Alpha Edge today and let us show you how cashflow forecasting can be done with ease.
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