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From expansion to project management, financial forecasting is the most important process that helps construction firms succeed in the competitive project ecosystem. Unfortunately, of industry-leading CFOs admit that their financial forecasts "are not particularly accurate." How much are they losing out on with a "not particularly accurate" cash flow?
Every major play your company makes depends on liquidity and cash flow. From resource allocation to project bids and on-site management, every layer of construction requires an accurate understanding of finances to execute. When your forecasts aren't accurate, you can lose bids, create resource headaches, and make ill-advised acquisitions or divestitures.
In the past, there were a limited number of factors that depended on cash flow predictions. In today's digitally-fueled world, it’s far more. Financial forecasting directly impacts tech spending, lean implementation, talent acquisition, and day-to-day on-site activities. Decisions have to be made using both financial instruments and productivity-based factors. The state of your data is the state of your decision-making. So let’s talk about how to improve financial forecasting and how your decisions can go from “not particularly accurate” to as accurate as possible.
How predictive analytics amplifies construction forecasting
Companies aren't resigned to accepting financial forecasting inaccuracies. Over the past 50 years, CFOs and controllers have spent significant time and capital developing competing mathematical forecasting models. But they all lack one thing — predictive analytics. Emerging technology like AI and machine learning have supercharged forecasting to allow for accuracy that was previously impossible.
Knowing this, we can say with confidence that the first step towards digital transformation needs to happen in finance. Two questions CFOs should be asking themselves are:
- How can I automate my forecasting so that it happens instantly, and around the clock?
- How can I leverage that automation with advanced analytics and visualization across all of my financial signals?
That's the big secret: accurate, transparent, and deep digital transformation paves the way to accurate financial forecasting. To create the highest value financial questions, controllers need to consider how they're analyzing cash flow in a broader sense. They need to leverage predictive analytics to understand the future of your finances. Predictive analytics unlocks future-driven KPIs and a whole world of possibility. It’s been proven that implementing this technology improves outcomes vastly more than the traditional, manually-driven mathematical models.
Bridging the gap
Every construction decision should be made with a clear-cut financial roadmap guiding the way. Unfortunately, that ever-present gap between accuracy and usability is still present in the majority of construction firms' forecasts. One of the reasons Briq was designed is because forecasting shouldn't just be an easy way to understand billings; it should be a driving differentiator that helps you navigate the rocky terrain of the modern construction industry.
When you implement Briq, you’ll see better results than ever before. Thanks to our financial automation platform, you’ll save the thousands of hours you used to spend working on Excel documents, digging through data, and consolidating information. Using thousands of signals, our tools automatically create by-the-second financial forecasts that give you a clear and consistent picture of the present.
It’s not enough to simply purchase the technology. It’s only by linking it to your systems in a meaningful, real-time way that you can reap maximum benefits. By connecting these systems to your core processes, you will create a bridge between your data and its usability. Rather than settling for weak data and high utility, you can have both accuracy and efficiency in one package with Briq.
Contact us today and schedule a demo to see how Briq can revolutionize your financial forecasting.