11th September 2014
Construction crisis management: how can you protect your company?
Last winter’s flooding slowed the growth of the construction industry and left many contractors out of pocket. How can construction accounting software help you through difficult periods caused by events outside your control?
Good business management usually requires at least a degree of prescience – it’s important to be able to look to the future and make changes proactively rather than reactively. However, in a sector as large and far reaching as the construction industry, it isn’t always possible to spot a crisis coming and avert disaster before it hits. Over the past few years UK construction firms have had to endure no end of trials and tribulations. Can best practice construction crisis management help you to protect your firm in future, and what role can construction accounting software play?
There are numerous crises that can befall your construction firm, and the industry as a whole. Sometimes, these events are completely outside your control and cannot be circumvented – no matter how thoroughly you plan. Last winter’s flooding halted numerous construction projects across the UK and even delayed sector growth, leaving some contractors out of pocket. What can be done to defend against such occurrences? Ultimately, the best (and perhaps only) course of action is to maintain a sustainable business model capable of absorbing those periods when trade and cashflow take a hit. Construction job costing software can be used to identify the most (and least) profitable jobs, ensuring that your business can be run as cost effectively as possible.
Economic crises can be hard to plan for. Some analysts may have warned of the most recent recession before it occurred, but few could have predicted how long it would last or how deeply it would scar businesses here in the UK. While the construction industry is on the mend and overall the economy is in recovery, there’s no saying that another bust won’t follow the latest boom. Protecting your company against such crises requires strong financial management. To that end, construction account management software will provide you with the transparency you need to ensure cost-effective contract management, job costing and more. Run a tight ship and economic downturns won’t bite as badly.
The construction industry is a sector surrounded with red tape. The majority of these rules and regulations are there for a very good reason, and as such any instances of non-compliance will be cracked down upon severely. For example, if a single subcontractor were to fail to comply with HMRC legislation while working with your firm then the repercussions could involve fines, retroactive punishment, delays to ongoing projects and damage to your reputation. To avert such crises, subcontractors must be managed appropriately. Our construction accounts management software allows you to process applications and retentions effectively, while limiting data visibility so that only appropriate staff members can access subcontractor data. The best way to avoid compliance-based crises is to ensure complete transparency regarding all areas of subcontractor management.
These are just a few of the crises that might have an effect on your business, but ultimately good construction crisis management amounts to the same thing in every circumstance. Make sure that you run a tight ship, ensure that every employee has a clearly defined role and that cashflow processes are as efficient as they can be – that way, no crisis will cut as deep. Construction accounting software can help in this regard. To find out more about how Integrity Software can help your business prepare for the future, contact us today.
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