Construction Industry Continues Efficiency Gains to Reduce Risk and Improve Profitability

November 21, 2024         By: Henry Ferguson

Viewpoint, the established leader in integrated software solutions for a contractor’s office, team, and field, is pleased to announce a partnership with Nvoicepay, the leader in payment automation software for the enterprise. Both companies are focused on bringing innovation to the construction industry and delivering immediate and measurable customer value.

The Construction Industry still has heavy reliance on the paper check as the last doorstop on the approval of spending Issuing paper checks is, in many cases, still the most trusted method of controlling how money flows out of the business and there seems to be a fear of changing that process – even if it is expensive and inefficient.

Consider this average cost scenario: In a recent survey of customers, Viewpoint found that our customers write an average of 20,000 checks per year at an estimated cost per check of $5. Clearly moving as many of these payments to more automated methods like virtual cards and ACH begins a significant cost savings immediately.

The true cost of using paper checks has many layers; not only the physical paper, the stamp, and the human being to fold/stuff/lick/mail the check, but it is also the fact that the person involved in these steps could be providing much more valuable functions for the business. Instead of being tied up to repeat multiple manual steps, that person could be providing more timely reports and insights into cost accounting.

“We’re very excited to partner with Nvoicepay,” said Viewpoint Chairman and CEO Manolis Kotzabasakis. “They’re an innovative tech company that’s laser focused on transforming how customers manage their payment process. We know how time consuming and complex our customers’ accounts payable processes can be. Integrating with Nvoicepay will simplify the payment process to a single payment file. Our partnership with Nvoicepay is a great example of how we continue to transform the construction industry through the application of leading-edge technology.”

There appears to be a shift in vendor willingness to accept electronic payment. ACH is gaining acceptance as a less manual (less expensive) payment process. By outsourcing ACH payments, construction companies can gain process improvements and no longer need to share/maintain sensitive banking information across multiple suppliers.

Unlike bank ePayment offerings, Nvoicepay continuously monitors suppliers for the acceptable electronic payment method, maintaining supplier information as it changes over time, relieving accounting personnel from this burden and ensuring accounting teams can pay their suppliers in the most efficient payment method.

“We are proud to partner with Viewpoint. It’s exciting to have a partner that is as passionate as we are about transforming processes, companies, and even entire industries through technology. Our solutions change the incredible effort that often goes into paying suppliers into a simple automated flow, and we immediately reduce accounts payable costs by 75 percent. The ROI along with the simplicity and efficiency of the process really speaks for itself,” said Nvoicepay CEO and founder Karla Friede.

So how does a construction company evaluate if it’s ready to start moving away from paper checks and transition a portion of AP to more automated processes? Here are five key considerations that will help:

 

  1. Have the accounting team do a thorough analysis of all the costs of processing paper checks. It’s easy to miss all the touch points, people involved, and delays in the process; these must be identified to truly assess the costs of continuing the current process.
  2. Have Nvoicepay provide a free assessment of what your current spend will look like once your payments are made electronically, how your costs will be reduced and how many of your payments will qualify for rebates given your existing supplier mix. This can be an eye-opening experience and doesn’t put the construction company in the middle with the supplier.
  3. Do current paper-based processes require more than 10 days to go from invoice receipt to payment? If so, then discounts on select purchases aren’t available and may be costing your organization significantly on expenses that are going to be paid on a regular basis anyway.
  4. Do you have the ability to provide third parties with visibility into the status of their payment without granting access to your accounting system? Nvoicepay allows for payment status updates, which reduces calls and reminders for your accounting team, relieving them of these time-consuming tasks

Henry Ferguson, Director of Strategic Partners, Viewpoint.

Henry has worked at Viewpoint since June of 2004 and plays a leading role in the formulation and execution of Viewpoint’s Strategic partnership strategy. In that capacity Henry draws on many aspects of his passion for technology to identify and execute partnerships which further Viewpoint’s general value proposition and long range growth strategy. The Nvoicepay partnership is a great example of how industry leaders working together can lead an industry through technological innovations to improve efficiencies, reduce risk and improve profitability.