Article
Building Financial Clarity: How Construction Teams Can Make Smarter, Faster Decisions
Chapter 1
The Financial Landscape of Construction: Complex and Fragmented
Managing finances in today’s construction environment often feels like navigating a maze blindfolded. Teams rely on outdated tools that are ill-suited for modern projects. From spreadsheets and disconnected ERP systems to manual data entry, these fragmented processes not only cause inefficiencies but also introduce risks that lead to costly mistakes and project delays.
The stakes are high: construction firms operate with tight profit margins—just 3-7% on average, according to research from IBIS World—and face mounting pressure to deliver projects on time and within budget. Yet, a KPMG Global Construction Survey found that 37% of the construction firms had missed a budget or schedule target over the previous year, often due to gaps in financial visibility and outdated data on project costs. Without accurate, up-to-date data, making timely, informed decisions becomes a challenge, leading to avoidable delays and costly overruns.
Chapter 2
Protecting Margins with Real-Time Financial Visibility
To safeguard margins and enhance project outcomes, construction firms need a cohesive system that connects every phase of the project—from field operations to back-office teams and partners. An integrated solution brings financial clarity and control by uniting data, processes, and teams, providing immediate access to the latest financial insights to drive faster, more informed decisions.
Fragmented systems introduce significant risk, where teams must make financial decisions based on outdated or incomplete information, increasing the likelihood of errors and delays. For example, a project manager might track a cost change on a spreadsheet, but because the data isn't connected with financial systems, it takes time for accounting to process it and make adjustments. By the time the information reaches decision-makers, costs may have escalated, margins may have eroded, and the chance to mitigate risk may have passed.
Chapter 3
Financial Management: A Strategic Role Across the Project Lifecycle
In the past, financial management was viewed as a back-office function, focused on tracking budgets, processing invoices, and closing the books. However, today’s construction finance teams must play a critical role throughout the entire project lifecycle—from estimating and budgeting to cash flow planning, field-driven cost adjustments, and vendor management.
Finance leaders must adapt to a more strategic role, tracking costs in real-time, adjusting forecasts based on actual field data, and ensuring that teams have the insights needed to stay on track. This shift demands a flexible, integrated system that provides complete financial visibility from start to finish.
Chapter 4
Connecting the Dots: Real-Time Financial Data Across Teams
To address these evolving challenges, construction finance teams need immediate access to accurate financial data from both the field and back-office systems, ensuring every decision is informed by the latest information.
Field-driven financial inputs should flow seamlessly into the financial system, giving project managers, accountants, and other stakeholders access to the same data. This promotes greater collaboration and enables faster decision-making. With real-time cost-to-complete tracking and field-driven forecasts, teams can proactively address issues—whether it’s a change order, cost overrun, or delay in the supply chain.
For example, Discovery Builders used Procore to integrate their ERP system with real-time field data, eliminating manual processes and improving forecasting accuracy. By standardizing financial operations, they reduced errors, saved time, and scaled their services—all while keeping financial data accurate and accessible to the entire team.
“With real-time cost data coming in and everything getting coded correctly, we were able to start reporting properly and timely, and doing real forecasting.”
Heidi Heitz-Lowe
Director of Procore Systems and Integration
Discovery Builders
Chapter 5
A Broader Approach for Today’s Construction Finance Demands
Procore's approach is tailored specifically to the needs of construction teams. Unlike generic financial management systems, which force teams to adapt to rigid processes, Procore is built to support the unique needs of the industry—from the jobsite to the balance sheet.
Procore Financials connects field data with financial systems, integrates seamlessly with existing ERPs, project management tools, and accounting platforms, and offers open APIs and customizable workflows to help meet the specific needs of construction teams. This flexibility enables teams to maintain their existing tech stack while benefiting from the added layer of real-time visibility and financial control.
Chapter 6
The Impact: Turning Financial Clarity into Improved Project Outcomes
By embracing an integrated system, construction teams have achieved measurable improvements in key areas with Procore. The findings below are from a recent ROI study.
Making Data-Driven Decisions: 70% of Procore customers report that real-time financial data improves their ability to create more accurate forecasts. With up-to-the-minute insights, teams can adjust budgets and mitigate issues early, avoiding costly surprises. Visibility into budgets and forecasts ensures that decisions are based on the latest data, leading to more efficient project delivery.
Managing Risk and Protecting Margins: 73% of customers say that Procore improves their ability to track and manage project costs. With cost tracking linked directly to field data and automated approval workflows, teams can monitor costs and act quickly to address potential risks.
Driving Operational Efficiency: With automated invoicing and streamlined workflows, teams save significant time—accounting teams report saving 2-3 hours a day by centralizing financial data. This reduction in administrative tasks frees up resources to focus on more strategic work, increasing productivity across the board.
Chapter 7
Looking Ahead: The Future of Financial Clarity in Construction
As the construction industry continues to grow—the demand for better financial oversight and smarter decision-making will only intensify. With rising costs, labor shortages, and tighter project timelines, construction companies need systems that enable them to make data-driven decisions at every turn.
The challenge isn’t simply completing projects faster; it’s completing them smarter. That requires giving teams the tools to manage finances efficiently and maintain control from start to finish.