Many important changes in the marketplace pertain to revenue management, and these changes are affecting every industry from retail to construction. If you own a construction company, it would be prudent to spend some time better understanding the new economy to see how your business can succeed in the coming years.
Before you make another move, evaluate the following important considerations:
- Are you risking noncompliance by not understanding new standards? Industry standards change regularly, and many are government mandated. By failing to understand these new standards, you run the risk of being noncompliant, which could become a barrier to continued success in the future. And that is simply the best case scenario.
- Did you know your data could be compromised if you use spreadsheets alone? For example, simple spreadsheets, like Microsoft Excel, are not considered sophisticated enough to maintain the right financial records. Yet, many construction companies admit that they are still using spreadsheets as their primary data collection tool.
- Are you familiar with ERP software and how to manage your revenue? The next level is an enterprise resource planning system that can automate much of your data collection process. The myriad number of packages from which to choose can make the process of transition enough to scare off construction business owners.
- Are new billing standards taxing your current systems? If you’re not able to process billing effectively or efficiently, you will create a bottleneck in your cash flow process that can be difficult to recover from over time. If you’re finding the process more complicated or difficult, it may be time to consider a new system for revenue management.
Do you have more questions than answers about revenue management? Contact our experts to learn more and improve your construction business today.
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Eric Cohen, CPA is the President and Founder of E. Cohen and Company CPAs, a full-service CPA firm serving nonprofit organizations, government contractors, professional service companies and other industries with audit, tax and business advisory services for over 26 years. The firm was commended as a SmartCPA Reader’s Choice by SmartCEO magazine and a “Best Accounting Firm to Work For” by AccountingToday magazine. For more information, visit www.ecohencpas.com or call 301-917-6200.