7 Ways that AR Automation Benefits Construction Companies

Accounts receivable automation in the construction industry is like the scaffolding that supports a building under construction.

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Just as scaffolding streamlines the building process by providing structure and efficiency, AR automation streamlines financial processes, ensuring invoices are sent, tracked, and paid with the precision and timing of a well-oiled machine.

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This foundational support not only elevates your business’ financial health but also ensures that your cash flow remains as steady and reliable as the projects you build.

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Laying the Foundation: What is Accounts Receivable Automation in Construction?

Accounts receivable (AR) automation serves as the digital backbone of your receivables management. Much like how modern tools have revolutionized building processes, AR automation has modernized how companies manage payments from clients.

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By automating invoicing, payment reminders, and collections, accounts receivable automation software allows construction companies to focus on laying bricks rather than tracking bills, leading to more efficient operations, reduced errors, and improved cash flow.

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Looking to learn more about accounts receivable? Check out our comprehensive AR guide.

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7 Key Benefits of Accounts Receivable Automation for Construction Firms

Now that we’ve covered the basics of what AR automation is and how it works, it’s time to discuss how it benefits construction companies.

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1. Faster Invoicing, Quicker Payments.

‍Construction's infamous payment delays are no match for AR automation. It accelerates invoicing, reducing the time it takes for money to start flowing back into the business.

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2. Better Cash Flow.

Research indicates that adopting AR automation can significantly reduce a company’s average days sales outstanding (DSO) by about 32%, injecting vital liquidity to help keep your projects on track without financial hiccups.

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3. Accurate Financial Data.

‍Say farewell to manual errors. AR automation ensures your financial data is accurate and reliable, essential for managing large budgets and planning future expenses.

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4. Efficiency Gains.

Automating financial tasks saves valuable time and resources, allowing your team to concentrate on project delivery and operational excellence.

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5. Improved Compliance and Security.

‍Automation helps maintain high standards of financial compliance and data security, protecting sensitive information and ensuring operations meet industry regulations.

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6. Stronger Client Relationships.

Accurate and timely billing helps maintain positive relationships with clients, reducing disputes and building trust.

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7. Real-Time Insights.

Immediate access to financial information enables informed decision-making, better budget control, and smarter resource allocation.

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Centime’s AR Automation for Construction Companies

Centime is transforming financial management for construction teams, addressing challenges like delayed payments and tracking inefficiencies.

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Our AR automation not only streamlines billing, but also handles change orders, and ensures prompt application submissions, to improve your cash flow and supplier relations. Get paid faster with our AI-driven collections process and user-friendly customer payment portal, and make better business decisions with our advanced forecasting.

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By integrating seamlessly with major construction ERPs like NetSuite, Sage, and QuickBooks Online, Centime ensures a cohesive and efficient financial management experience, freeing up your construction team to focus on delivering exceptional project outcomes.

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Want to learn more? Click the banner below to try Centime for free.

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**Deposit placement through ICS is subject to the terms, conditions, and disclosures in the applicable agreements. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through ICS satisfies any restrictions on its deposits. A list identifying IntraFi network banks appears at https://www.intrafi.com/network-banks. The depositor may exclude banks from eligibility to receive its funds. IntraFi and ICS are registered service marks, and IntraFi Cash Service is a service mark, of IntraFi Network LLC.

^††3.5% Annual Percentage Yield (APY) as of 11/19/24. Deposit rate may adjust to current market rate and may change daily. Fees may reduce earnings.

*Centime is not a bank and is not authorized by any federal or state agency to engage directly in core banking activities.
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*All banking products and services available through Centime are provided by FNBO and are governed by the applicable agreements and related disclosures provided to you by FNBO. Member FDIC.
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‍*While Centime facilitates traditional banking activities (such as the acceptance of deposits or extensions of credit), these services are actually provided by our banking partner, FNBO.
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*Centime may provide support services to FNBO, as permitted by applicable law, to facilitate the delivery of its bank products and services.

**Deposit placement through ICS is subject to the terms, conditions, and disclosures in the applicable agreements. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through ICS satisfies any restrictions on its deposits. A list identifying IntraFi network bank

7 Ways that AR Automation Benefits Construction Companies

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