Building Success: The Crucial Role of Effective Administration In Reducing Risk
Written by Amanda Chisholm, Director of My Smart Office.
In the fast-paced world of construction, where projects can be complex and deadlines tight, effective administration can mean the difference between success and failure. From managing finances to ensuring timely invoicing and maintaining accurate project records, prioritising administrative tasks can help your business mitigate risks and maximise profitability.
Financial Management
Keeping your records up to date and conducting regular financial reports will help you stay on top of your game. When you delay reporting, it’s like trying to drive with foggy glasses – you can’t see where you’re going! This lack of insight into your project’s profitability makes it hard to make the right calls. Plus, meeting tax deadlines, like filing your GST returns on time, is key to avoiding unnecessary penalties and keeping your finances in good shape.
Cash Flow Management
Invoicing on a regular basis, whether weekly or fortnightly, is crucial for maintaining healthy cash flow. Cash flow is king and invoicing promptly ensures a steady stream of income to cover expenses and keep projects moving forward smoothly.
Payment Claims
A valid payment claim is like an invoice on steroids, providing legal protection in case of disputes. Following the simple payment claim processes outlined in the Construction Contracts Act can help you get paid on time and avoid timely and costly disputes.
Project Costing
Back costing projects is essential for evaluating profitability and tracking expenses accurately. A project management software, like Builda Price, can streamline the cost estimation process and monitor project costs in real-time. Staying on top of project finances helps you identify potential overruns early, leaving time to decide on the best course of action.
Payroll Management
Proper payroll management, including leave accruals and PAYE filing, is critical for compliance and employee satisfaction. Delays or inaccuracies in payroll processing can lead to unhappy staff and legal ramifications.
Avoiding Burnout and Project Mismanagement
Burnout and poorly managed projects can have far-reaching consequences for you, your team, and clients. Time and cost overruns will not only hit you in the pocket, but also strain relationships and damage your reputation. Effective project management strategies and prioritising team well-being can mitigate the risk of burnout, ensure project success and keep your clients’ happy.
In a Nutshell
Effective administration is essential to navigate the complexities of the construction industry successfully. Investing in robust administrative systems not only builds efficiency but safeguards your reputation and fosters long-term success in a competitive market.
Amanda Chisholm is Director of My Smart Office. Amanda runs a successful residential building company with her husband. She also uses her 20+ years’ experience in bookkeeping, administration, customer communication and sales to help builders manage their accounts and administration, increase revenue, improve profitability and gain time. For more information visit https://mysmartoffice.co.nz.