Construction is a complex industry. Multiple cost centers, subcontractors, frequent changes in scope, long project durations, and cash flow variability can make it difficult to track expenses efficiently and accurately. This creates an opening for wasteful, even fraudulent spending, potentially costing companies thousands of dollars a year.
Coast, a modern fleet card and expense management solution, recently surveyed over 200 construction industry employees to learn about their field expense management practices. We found that while these companies are making an effort to control spending, they still face significant challenges when it comes to expense management.
Highlights from Our Construction Company Survey
Field spending is a regular part of operations. Sixty-eight percent of our respondents said that employees make purchases at least once a week. But although more than 98% of companies have purchasing policies in place, compliance remains an issue: 31% estimate that better policy compliance could save between 10-20%. In the meantime, the costs are adding up. Over half—56%—of respondents catch instances of wasteful or unauthorized spending every quarter. Company cards seem to be a particular problem area, with 40% of respondents reporting they have suspected, witnessed, or experienced abuse of a company card.
Tedious expense management tasks are also eating up time. The majority of companies, 61%, are still using manual processes to review spending. Not surprisingly, 48% feel expense reconciliation takes too long.
Clearly, traditional expense management methods are failing to meet the needs of modern construction businesses. The good news is that a new generation of fuel cards and expense management solutions are directly addressing these issues.
Fuel and Field Expense Management Made Easy
Older cards and systems are often limited by restricted functionality and outdated technology that puts them at risk for misuse. A modern solution like Coast allows employees to put all their expenses on one card while making it easier than ever to track spend and close books. Companies can fine-tune each card’s purchase categories and spending limits to control expenses and save money.
The difference can pay off handsomely. Letsos, a mechanical contracting company based in Houston, TX, made the switch and is now saving $50,000 a year and 15 hours a month. Communications Unlimited in Birmingham, AL, was able to save $22,000, thanks to rebates and more effective monitoring.
Construction companies should be sure to choose an expense management solution with the following features:
Automated Policy Enforcement
Look for a card that offers “set it and forget it” spending policies. These automatically apply the right spending rules for every employee, eliminating the need for constant manual oversight and reducing the risk of policy violations.
Streamlined Receipt Management, More Accurate Job Costing
Choose a solution that allows for immediate capture of job codes, receipts, and memos at the time of transaction. This eliminates the need to manually chase down receipts later, saving time and improving accuracy.
Improved Fleet Data Tracking
Modern systems offer better tracking of card usage, even when drivers switch cards between vehicles. This level of detail can uncover hidden issues. For example, Bug Master, a company based in Austin, TX, discovered an employee fuel theft problem only after implementing Coast’s more advanced tracking system.
Telematics Integration
Fleet telematics integrations help you automate security and management
Fuel cards that integrate with telematics systems provide an extra layer of protection against card misuse. Integration allows for real-time tracking of vehicle locations and fuel consumption, making it easier to spot discrepancies.
Real-Time Visibility and Control
Look for a solution that offers real-time transaction alerts and the ability to instantly block cards or set spending limits. This allows companies to maintain control over expenses without micromanaging every transaction.
Comprehensive Reporting and Analytics
Choose a system that provides detailed insights into spending patterns. These can help companies identify areas for cost savings and efficiency improvements.
In an industry where margins are tight and competition fierce, even small changes can have a big impact. By leveraging the features of a modern fuel card and expense management solution, construction companies can take control of field spending and improve operational efficiency, ultimately building a stronger foundation for growth.
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