Improving Financial Forecasts with Briq
- Controllers and CFOs struggle with forecasting accuracy — with many simply resigning to inaccurate financials.
- AI-enabled forecasting solutions create hyper-accurate reporting across financial dimensions.
- Leveraging analytics-driven financial forecasting solutions can help CFOs bridge the gaps between forecast accuracy and usability.
From expansion to project management, financial forecasting is arguably the most important process that helps construction firms navigate the increasingly complex and competitive project ecosystem. Unfortunately, 40% of industry-leading CFOs admit that their financial forecasts "are not particularly accurate." Here's the problem: you can't afford to be "not particularly accurate" with cash flow.
Every major play your company makes is hinged to liquidity and cash flow. From resource allocation to project bids and on-site management, every layer of construction requires an accurate understanding of finances to execute. When your forecasts aren't accurate, you can lose bids, create resource headaches, and make ill-advised acquisitions or divestitures.
In the past, letting, bidding, and maintenance have all been based on cash flow predictions. But, in today's digitally-fueled world, financial forecasting directly impacts tech spending, lean implementation, talent acquisition, and day-to-day on-site activities. Decisions have to be made using both financial instruments and productivity-based factors. Making the right decision largely depends on the accuracy of your forecasting.
Providing Accuracy to Construction Forecasting
Companies aren't resigned to accepting financial forecasting inaccuracies. Over the past 50 years, CFOs and controllers have spent significant time and capital developing competing mathematical forecasting models. But they all lack one thing — predictive analytics. Emerging technology (e.g., AI, machine learning, etc.) that many construction firms are already leveraging in other areas of their business are ideal for forecasting.
The first step towards digital transformation shouldn't happen in marketing, sales, or project management; it should happen in financials. CFOs should be thinking, "How can I automate my forecasting so that it happens instantly, and around-the-clock?" And, "How can I leverage that automation with advanced analytics and visualization across all of my financial signals?"
That's the big secret: accurate, transparent, and deep financial forecasting paves the way to digital transformation. It all starts with cashflow. To create the highest value financial questions, controllers need to consider how they're analyzing cash flow in a broader sense. To do this, they need to leverage data analytics, specifically, predictive analytics. The goal should be to understand the future of your financials — not to create plans using historical data. Predictive analytics unlocks future-driven KPIs, and forecasting technology improves outcomes, especially compared to traditional, manually-driven mathematical models.
Bridging the Gap
Every construction decision should be made with a clear-cut financial roadmap guiding the way. Unfortunately, that ever-present gap between accuracy and usability is still present in the majority of construction firms' forecasts. One of the reasons Briq was designed is because forecasting shouldn't just be an easy way to understand billings; it should be a driving differentiator that helps you navigate the rocky terrain of the modern construction industry.
Predictive analytics platforms enable incredibly accurate reporting through industry-leading AI technology. Briq’s automation, data storing, and discovery platforms help you save thousands of hours spent working in Excel documents, digging through data, and consolidating information. Using thousands of signals, our tools automatically create by-the-second financial forecasts that give you a clear and consistent picture of the present.
Through intelligent forecasting and data-driven insights, you can add tangible amounts of financial value to your business.