Construction financial management involves planning, tracking, and controlling costs on construction projects. It includes tasks like budgeting, forecasting expenses, managing cash flow, and using real-time data to make better decisions. With KYRO, construction finance managers can unify data in one place and automate many manual tasks, helping them stay on top of each project’s financial health.
They oversee budgets, expenses, and financial reporting to ensure project profitability, manage risk, and align with strategic goals. This additional section clarifies the daily tasks and responsibilities of a CFM.
Maintaining consistent cash flow is essential for meeting day-to-day expenses and keeping projects on schedule. By implementing cash flow forecasts, managing receivables more proactively, and identifying key profitability drivers, construction firms can optimize their financial resources and drive sustainable growth.
Small and medium construction companies face particular challenges with limited working capital, making precise cash flow management essential for project success. Given this, it is imperative that CFMs have a solid handle on the expenditures where they face several challenges in maintaining a healthy cash flow due to manual processes, limited visibility into financial data, and information silos between departments.
CFMs are constantly tracking budgets versus actuals, managing cash flow, processing invoices, and reporting financials. This typically involves spreadsheets and paper-based processes to collect field data and departmental information. The disconnected data creates errors and delays, forcing reactive rather than strategic decision- making. There is often limited visibility into real-time project costs and profitability.
This results in a lot of chasing down of information instead of analyzing data and providing insights. The lack of automation and real-time data makes it challenging to get an accurate picture of financial performance.This leads to decisions being made based on incomplete or outdated information.
Manual processes and data silos create specific operational challenges for CFMs:
· Difficulty in consolidating data from spreadsheets of multiple job sites into a single view of the project's financial health
· Higher likelihood of errors when re-entering data across multiple spreadsheets.
· Labor intensive data entry. Construction finance teams spend countless hours manually entering data instead of more strategic analysis.
· Lack of automation for routine financial tasks. Everything from reporting to approvals must be done manually.
· There is no central repository for financials, and retrieving reports requires tedious manual processes.
· Data from different teams live in different systems, creating silos.Without a unified source of data, the chances of errors are high
Construction finance is fundamentally about making data-driven decisions. But with data trapped in silos, construction firms struggle to leverage financial insights to maximize profitability. There is a clear need to break down data silos to empower smarter decision making.
KYRO provides construction management software designed to give small and mid-sized contractors—the intuitive tools they deserve, simplifying project and financial management through a single, unified platform.
Some of KYRO's key features and benefits include:
Real-Time Financial Insights - KYRO integrates with accounting software to provide real-time visibility into financial performance. Dashboards and reports give instant access to profitability by project, cash flow, and other key metrics.
Centralized Data - All project information and documents, from bids and budgets to RFIs, submittals, and change orders are stored in a single source of truth. This breaks down silos and provides full transparency. Moreover, these are easily accessible for financial planning and analysis.
AI Copilot - KYRO's AI Copilot acts as an ever-present assistant that provides instant insights on-demand. For example, using a simple prompt, CFMs can immediately get financial information about projects, expenses, payroll etc.and make informed decisions.
Custom Reporting - Users can create custom reports and dashboards tailored to their specific needs. This flexibility allows drilling into details for better decision making.
Team Collaboration - The platform centralizes communication, allowing project teams to collaborate efficiently.
KYRO’s AI Copilot provides instant data analysis and predictive insights, enabling construction finance managers to forecast expenses, optimize budgets, and improve project financial health.
KYRO’s AI Copilot has helped a construction management finance team improve their efficiency by spending more time on what matters. A lot of the manual work highlighted earlier are replaced by one single prompt. Within seconds, CFMs have all the data they need from several different projects, allowing them to process payroll and send invoices faster. This ensures that CFMs have more time to dig deeper into the data and make better decisions to improve the company’s financial health.
For example, a CFM can prompt: 'Show revenue performance for Team A versus monthly targets, including variance analysis and contributing factors for any shortfalls.'
Financial Planning and Analysis: KYRO’s Copilot can extrapolate forecasted regular and overtime hour splits at the client level. It is also able to calculate revenue and gross profit results at the employee or client level with a simple prompt. Additionally, KYRO can report unbilled hours to generate employee efficiency metrics.
Timekeeping and Expense Management: As a single source of input for all employee time and expense management, along project and HR related items (daily field reports, drawing mark-up, PTO etc.), KYRO helps companies reduce the number of apps required for their processes by providing all the required data within one app. KYRO’s Copilot then combines these data in real time, empowering line managers to quickly address over/under and unapproved time and expense errors.
Weekly Payroll Processing: KYRO’s Copilot can serve as your accounting team’s real-time timecard approval validation system. A simple prompt can generate a report that lists all timecards and expense reports pending field manager approval or any field employee who has not submitted a timecard. This allows companies to scale without adding additional back-office employees.
Accounting Pre-Close and Accrual Estimating: Our Copilot can quickly assist accounting staff in evaluating accruals and serve as a spot check on revenue and cost-of-sales calculations.
KYRO provides significant benefits for construction finance managers of small and medium businesses. By leveraging AI and centralized data, KYRO gives finance managers real-time visibility into financials with automatic insights and reporting. This eliminates inefficient manual processes, resolves data silos, and enables better decision making.
With KYRO, finance managers can gain control, improve their operations, optimize spending, and drive growth. The custom reporting and analytics allow for data-driven decisions tailored to the needs of each small construction business.
Smaller contractors often lack the resources or staff to maintain manual spreadsheets and complicated workflows. KYRO streamlines these processes—everything from capturing timecards to generating financial reports—so teams can focus on controlling costs, improving cash flow, and boosting profitability.
KYRO empowers construction finance managers to effectively oversee finances so construction firms can operate more efficiently and profitably. The AI-powered financial insights bring visibility, automation, and intelligence to small business construction.
Have questions about how KYRO can help construction finance managers streamline project budgeting? Talk to us Today!