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Building a Modernized Finance Organization: Forging the Path Ahead

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The benefits of modern financial organizations are widely acknowledged within the construction industry: heightened efficiency, increased flexibility, and the ability to monitor activities in real-time, providing instant snapshots for stakeholders, managers, and auditors. However, implementing sudden, comprehensive changes in processes and technology can prove counterproductive.

Modernization is a gradual journey that commences with a single step. By adhering to this roadmap, construction companies can mitigate potential hurdles and smooth out the path ahead.

Take our brief 2-minute quiz to see your team’s progress on the journey toward modernizing expense management in the construction sector. Then, armed with insights into your current standing, discover actionable steps to elevate your performance.

Level 1

Companies at Level 1 predominantly rely on paper-based methods for expense management, storing receipts meticulously and using cash for transactions. Despite efforts to stay organized, this system proves time-consuming. Transitioning to digital tracking can alleviate this burden and enhance accuracy. Here’s how to start:

1. Moderately modernize

Begin with simple digital tools like Excel to document expenses and photograph receipts and storing in Box or Google Drive for easy access. As comfort grows, explore accounting software for more automation.

2. Get a handle on your expenses

Digital tracking allows for monthly review, providing insights into spending patterns and facilitating better financial management. Consider tools like PEX, which offers corporate cards + a spend/expense management platform that streamlines expense tracking, receipt capture and reporting all in one place. Schedule a demo for more details.


Level 2

Companies at Level 2, skilled in Excel, often struggle with paper-based expense tracking. Despite their Excel expertise, matching receipts with entries can be challenging, leading to wasted time and duplicated efforts. To streamline expense management, Level 2s can:

1. Go digital

Transition to online payment software like PEX for seamless payments, receipt matching and spend monitoring.

2. Increase company card usage

Assign company cards to frequent buyers to enhance safety and simplify reporting, while reducing the need for formal expense reports

Platforms like PEX offer quick card issuance, easing reimbursement processes and simplifying reporting. Schedule a demo for more efficiency.

Level 3

Companies at Level 3 mark the transition to prioritizing full paperless operations. While organizations at this level employ accounting platforms like QuickBooks Online and payroll reimbursements, they still grapple with multiple systems and lingering paper-based methods. To streamline operations:

1. Implement corporate cards with set limits 

Consolidate back office and team spend with a uniform expense platform like PEX,  with the ability to assign company prepaid and credit cards with tailored spending limits.

2. Increase integration

Integrate systems to enhance efficiency. Utilize tools like Receipt Capture to automate receipt management and feed data into accounting software, like QuickBooks, seamlessly. [See accounting integrations here]

3. Access real-time data

Consolidate spending information into one online platform for accurate and timely expense management, aiding in general ledger management and expense forecasting.

PEX’s mobile app facilitates real-time spending reporting with accounting GL code integration, while accounting software integration simplifies back-office processes. Schedule a demo for streamlined operations.

Level 4

Companies at Level 4 organizations operate in a highly digitized environment, minimizing paper usage through tech-driven expense tracking tools like Receipt Capture. Despite these advancements, Level 4s face challenges in fully optimizing their processes due to the complexity of managing diverse systems and accounts across multiple locations.

To enhance efficiency and management, Level 4 organizations can take the following steps:

1. Automate your spend policy

Implement customizable parameters for purchase types, activity dates, and Merchant Category Codes to maintain spending control and enhance tax document preparation.

2. Manage scale

Increase the use of employee cards to streamline expense management across multiple accounts. Integrate accounting software for real-time reporting and end-to-end reconciliation, enabling better expense monitoring and adjustment.  [See accounting integrations here]

3. Prioritize real-time reporting 

Emphasize the importance of real-time reporting as the company grows, leveraging dashboard metrics for quick insights into spending trends, outliers, and budget adherence.

PEX offers granular control over card usage, allowing for customized spending limits and configurations tailored to various business needs. Schedule a demo to explore its features.

Level 5

Companies at Level 5 organizations stay ahead with real-time data flow and automated integration. Integrated software manages multiple accounts effortlessly, providing up-to-date insights into expenses anytime, anywhere.

Key features include:

  • Predefined spending limits for each employee card, adaptable to evolving roles and organizational growth.
  • Transaction notes and billing codes for thorough tracking, supported by Receipt Capture.
  • Automatic and accurate expense reporting and reconciliation, seamlessly recorded into accounting systems.  [See accounting integrations here – link to PEX Marketplace]
  • Decision controls for flexible authorization, integrating with proprietary systems like PEX for real-time purchase approval.
The PEX API offers advanced automation, allowing organizations to govern card usage according to established processes and rules. Schedule a demo for further exploration.

Want to find out how to stay at the top of your game? Explore business solutions offered by PEX. 
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