b'ACCOUNTING COLUMNmonthly draws to ensure cash is enteringSystems should also enable proper visibilitysubmittal trackers can all help you monitor your business on a consistent basis. Reviewand communication from the top ofyour progress on projects and proactively your invoicing trends to identify whatyour organizations hierarchy down to themanage potential risks.percentage of your projects are completebottom. For example, your site supervisor and how much needs to be invoiced toshould be able to send daily site reports andIt is essential to train your team members your customers. updates to ensure your labour is optimizedto look at reports and make decisions on site and that you are aware of any risksbased on what the reports are telling them. Additionally, implement systems thatto a project. For example, if a report shows an overdue closely monitor the profitability of eachThe right processes and systems will helpsubmittal, your team members can contact project on a weekly basis before financialsmanage the budget, schedule and scopethe architect to make sure it gets approved.to identify potential risks and helpof each project to ensure your business ensure your projects remain on budget.remains profitable. Review whether youAdditionally, incorporate weekly meetings Building better payment terms into yourhave systems in place to know how muchwithin your departments/teams to discuss new contracts will also help ensure yourprofit each project is generatingandoperational reporting. These meetings cashflow is optimized at the start of how much its projected profit will becan be quick and should cover high-level each project. after factoring in scheduling delays, scopeupdates on schedule, scope and budget. You may also consider contracting a thirdchanges and cost savings/overruns. You should also take time to discuss the party to help you build a payment strategyrisks identified by operational reporting or re-structure your debt.4. Aligns behaviours with technologysuch as overspending projectsand make and data-driven decision making informed decisions on how to mitigate Your organization must collect and reportthose risks.3. Builds on processes and systems on the right data to predict potential It is essential to ensure your organizationchallenges. Conduct the right reports for has the right processes and systems in placeyour business that connect your operationalFor more information on running an to help it thrive in the current economicmetrics to your financials. efficient construction business, contact environment. Whatever system you useJessica Grantham, Partner, MNP, should allow you to catch scope creep, andCashflow tools, accounts receivableReal Estate and Construction Services, at identify and address potential risks. reporting, change order reporting andjessica.grantham@mnp.ca or 250-979-2588.Cut costs and stay competitiveYou can keep growing and boost your efciency, even in this economy. Were here to help you get started.Jessica Grantham, Partner, CPA, CA250.979.2588 | jessica.grantham@mnp.caMNP.caSICA CONSTRUCTION REVIEWFall 202323'