What you’ll learn
How to streamline client payments to avoid disputes and improve cash flow
How to leverage tracking tools to stay on top of receivables, enhancing financial accuracy
What you’ll need
- An integrated invoicing and payment tracking system for real-time updates
- A systematic process to ensure accurate payment tracking and documentation
The Problem
Handling client payments is a complex task for general contractors, especially when invoices involve multiple components, such as contract invoices, reimbursement invoices, and direct payments to vendors. Mixing up these different types of payments can easily lead to delays in collections and disputes with clients. Without a clear, organized record, contractors face disrupted cash flow and risk straining client relationships, as clients may challenge charges or delay payments.
Skyline Construction encountered significant challenges while managing payments for a large commercial renovation project. The project required multiple direct payments to vendors along with several reimbursement invoices. Without a streamlined system, Skyline Construction struggled to maintain an accurate account of what was paid, reimbursed, or still outstanding. This lack of clarity led to repeated client disputes, cash flow issues, and wasted hours verifying payments manually.
The Hypothesis
To overcome this problem, Skyline Construction need a centralized, real-time system for tracking all client payments. By organizing every type of invoice and closely monitoring its status, contractors can prevent payment mix-ups and disputes, which leads to faster collections and a more stable cash flow.
The Solution
Skyline Construction implemented APARBooks, a specialized accounting platform for the construction industry, which provides a comprehensive approach to managing and tracking client payments. APARBooks enabled real-time tracking of all invoices under each project. Once an invoice was filed, Skyline Construction could send it directly to the project owner via APARBooks, establishing a clear and documented communication path for each transaction.
The platform’s receivable management interface offered Skyline Construction a simplified way to monitor outstanding payments, record payment methods (such as checks, wire transfers, or credit card payments), and mark payments as received. Fields like “Pay Amount” and “Remaining Balance” automatically updated, giving Skyline Construction an accurate snapshot of all due and paid amounts at any given moment.
Additionally, APARBooks allowed users to upload supporting documents, such as bank deposit slips or project receivables, for each transaction. This ensured that proof of payment or communication was always readily available, facilitating a smooth auditing process.
With convenient options to “Send to Owner,” “Mark it Sent,” or “Mark it Approved,” Skyline Construction could easily keep all stakeholders updated on payment progress, reducing disputes and fostering transparency.
The Impact
By using APARBooks, Skyline Construction completely transformed its payment tracking process. The platform’s automation and user-friendly interface saved time that was previously spent manually tracking payments, enabling the team to focus on higher-priority tasks. Real-time updates and an organized payment tracking structure led to fewer client disputes, simplifying the invoicing process.
The structured invoicing and tracking system also led to faster payment processing, significantly improving Skyline Construction’s cash flow. With a consolidated view of all project payments and receivables, Skyline Construction maintained stronger financial oversight, reducing the risk of missed payments and ensuring healthier profit margins.
This case demonstrates APARBooks’ expertise in addressing the unique challenges faced by construction contractors. With APARBooks, clients can enhance payment accuracy, improve client satisfaction, and maintain a healthier financial position.
