Construction Receipt Tracking: Why it’s Different, Why it’s Difficult, and How to Make it Easier
Construction bookkeeping is a whole other level of financial management. From the initial bid process to the end of the project, many expenses get lost in the chaos — which ultimately results in a loss of revenue for construction companies.
Whether you’re looking for ways to streamline your bookkeeping processes, or simply want to know how to keep track of the hundreds of receipts every project requires, you are not alone.
And that’s where Flexbase comes in.
We’ll identify the 3 main reasons why receipt tracking is almost impossible for construction companies, and give you the exact solution you’ve been looking for.
3 Reasons Why Receipt Tracking Is Basically Impossible for Construction Companies
#1: Receipt Tracking Is Project-Driven
When you think about a standard business model, you may imagine production, storefronts, and offices where most of the transactions take place.
Anyone who’s ever worked in the construction industry knows that the “profit centers” are not all located in one place.
Construction projects, on the other hand, are each unique in the following ways:
- Length of contract
- Cost of materials
- Labor availability
- Site conditions
- Seasonal changes
- Etc.
At the end of the day, controlling costs can prove to be challenging because the available tracking systems of the past have failed to acknowledge one simple weakness: human error.
#2: Receipts Are Scattered Over Multiple Projects
In construction, labor and equipment can be moved from site to site. This means that your GCs and subcontractors have to manually track every receipt and accurately attach it to the correct project.
With all the moving parts of multiple construction sites, this is no easy task.
Construction companies must factor in …
- Mobilization costs
- Availability of materials
- Seasonal production cycles
- And more
… making receipt tracking a veritable nightmare for contractors who work multiple projects at a time.
#3: Receipts Must Be Tracked Throughout Long-Term Contracts
Construction contracts can extend for years, which is far longer than most industries.
Top it off with payment terms that may allow up to 90 days or more to pay invoices, and it’s no wonder cash flow may become an issue. Especially if your contractors aren’t properly tracking and submitting receipts.
As if that’s not bad enough, disputes or retainage withholding can delay invoice payments even more.
For construction companies, this means that special considerations, such as ...
- Precise receipt and job cost tracking
- Contractor reporting and submittals; and
- Cash flow strategies
… must take priority. Anything that falls through the cracks is a direct revenue loss, and over time, this can really add up.
Flexbase: More Than Just Receipt Tracking
Not only does Flexbase boast the best receipt tracking system in the industry, but we also offer:
- 60 days to pay, 0% interest
- Up to 10x credit limits based on your future invoices and projected business
No security deposit required.
With Flexbase, each project is managed in our cloud-based app and is available at the touch of a button to everyone involved in job costing and receipt tracking.
Flexbase offers the only construction-specific credit card available on the market today.
With instant notifications, your...
- General contractors
- Supervisors; and
- Subcontractors
… can attach every purchase receipt to a specific project in real-time.
Flexbase makes it easy for construction companies to focus on the job with simplified and streamlined bookkeeping services and the most affordable credit card in the industry.
The Flexbase construction credit card can be divided over multiple cards, making it simple for construction companies to track purchases over multiple projects.
Stop stressing over receipts and join Flexbase for free.
