3 Signs Your Construction Business Needs Cost Management Software
by Lentune on 18 October, 2023
As your construction business evolves and expands, so do the challenges.
Keeping pace with this growth is essential, but it often brings a set of complexities that demand smarter solutions.
Let’s dive in and explore the signs your business needs better cost management software.
1. You don’t have real-time visibility of project costs
For project managers, quantity surveyors and business directors, having access to real-time financial data is key. At any given moment, these people should be able to dive in and understand exactly where the costs lie on each project for that exact moment in time.
It’s about having the ability to know, at a glance, how much has been spent, what’s committed and if the project is on track to avoid cost overruns.
Yet, for many businesses, obtaining real-time data can be a challenge. Waiting for approvals, consolidating data and cross-referencing can take hours, if not days.
By the time you’ve pulled everything together, the project landscape may have changed. Costs might have shifted, unexpected expenses might have arisen, or opportunities for savings could have been missed.
You’re essentially driving while looking in the rearview mirror.
This is where cost management software provides a totally liberating shift.
With everything flowing through one centralised platform, it offers a consolidated, real-time view of all your project costs and financials.
Every stakeholder can have instant access to vital financial information. If there’s a sudden surge in costs or a budget allocation needs adjusting, you’ll see it now, not after it’s too late to make a difference.
It’s no longer about reacting to financial surprises; it’s about being proactive, ensuring your projects stay on budget and on track towards success.
“Lentune’s made things more transparent for our guys; they can see all their costs and expenses in one place.”
Adam La Hood, CFO
2. You’re planning or experiencing business growth
Going through periods of growth is one of the most exciting challenges a construction business can face.
Whether it’s an uptick in overall turnover, an expansion into new markets, or an increase in the size and complexity of projects, growth is a clear sign of business success.
But as you’ll discover, growth also brings added complexity, particularly in the area of project financials.
If your business is handling more projects, more transactions and more financial data, do you have a plan or system in place to efficiently manage this growth?
When growth happens, it’s not just about doing more of the same. It’s about growing smarter, scaling your operations and building a replicable process that’ll help your business grow over and over into the future.
This is where cost management software becomes a game-changer.
Cost management software will help you scale with ease. It provides a centralised platform where you can consolidate all your financial data.
Instead of drowning in more spreadsheets and administrative tasks, cost management software allows you to effortlessly manage budgets, track expenses and analyse project financials in real-time, all in one place.
This means as your business grows, your financial clarity and control grow too. No longer do you have to worry about losing track of costs, hiring more staff or struggling to keep up with the pace of your expansion.
In essence, if your construction business is planning or experiencing growth, transitioning to cost management software like Lentune is not just beneficial; it’s a strategic move that can help propel your growth trajectory even further.
Many successful construction companies have adopted this strategy, including New Zealand’s second-largest property developer, Williams Corporation.
“When Lentune first approached us, we were at a stage where we were seeing huge company growth in the New Zealand market, and we saw the value in Lentune software helping us be more efficient during our planned expansion into Australia.”
Blair Chappell, Co-founder
3. You’re spending too much time on manual data entry
A heavy reliance on manual data entry remains common in many construction businesses, especially when it comes to managing costs.
Some might argue, “We have the time for it,” or “We don’t mind the extra effort.” But when you’re investing excessive time in manual data entry, you’re essentially investing in inefficiency.
Rather than focusing on critical project-related activities, your most valuable resources are tied up in mundane, repetitive tasks.
Cost management software steps in to streamline this process.
Instead of sifting through stacks of invoices, manually entering data into spreadsheets and cross-referencing numbers, the software automates these processes.
It’s seriously clever tech! Every invoice, timesheet, or financial transaction is automatically captured and logged into the system. It’ll even categorise expenses and allocate them to the right projects or departments.
Imagine the time you’d save and the errors you’d avoid when your cost data is seamlessly integrated and readily available at your fingertips.
With cost management software, you can redirect this saved time and energy towards what truly matters — managing your projects efficiently and growing your business. Woohoo!
“For me, Lentune freed up a lot of my time and I’m concentrating more on the work I need to be doing — which is growing the business.”
Glenn Connor, General Manager
Wrapping it up
As the pace of the construction industry quickens, so do the demands placed on businesses within it.
Handling growth, maintaining real-time financial insights and streamlining manual processes are key to sustainable success.
Embracing cost management software like Lentune isn’t just an upgrade — it’s a strategic move that ensures your business thrives in this dynamic industry.
How we can help
At Lentune, we build smarter construction software to liberate your financial workflows. Our project cost management software puts all your numbers in one place, so you can say bye-bye to overruns. We’d love to show you how it works!
In a live demo, we can answer any questions and show you how Lentune could grow your business.