Blog - Lentune

Real-Time Cost Tracking in Construction: Spreadsheets vs. Software

Written by Lentune | 1 October, 2024

Imagine this: your construction project is humming along, and everything seems fine—until surprise costs pop up, buried in outdated spreadsheets. By the time you catch it, your budget is already off course.

If that sounds familiar, you’re not alone. Many companies face the same issue when relying on spreadsheets for cost management. The problem? They only show you the damage after it’s done.

In this article, we’ll explore how real-time cost tracking software can change that—reducing errors, saving time and giving you instant financial insights. Companies like BLR Provincial Construction and Cook Brothers Construction are already seeing the benefits. 

Ready to join them? Let’s dive in!

 

The limitations of spreadsheet-based cost management

Spreadsheets are great for organising data, but they’re not a project cost management tool. Here’s why they might be holding you back:

👉 Delayed insights due to manual data entry

Manual data entry means you’re always playing catch-up. By the time costs are recorded and processed, your project could already be off track.

Instead of real-time visibility, you’re making decisions based on yesterday’s (or last week’s!) numbers, which can lead to missed chances to adjust and avoid cost overruns.

👉 Potential for human error

Humans make mistakes, and when you’re manually entering data, it’s easy to misplace a decimal or enter the wrong figure.

These small errors can cause big headaches, like underpaying or overpaying suppliers, forcing you to track down and fix issues — a time-consuming task no one wants.

👉 Difficulty in making timely decisions

Spreadsheets make it hard to respond quickly to changes. Without real-time updates, it’s tough to spot issues like budget overruns or supply delays when they happen.

This slows down your ability to make critical decisions, meaning problems can grow before you even have the chance to act.

👉 Challenges in collaboration and data sharing

Construction involves a lot of people needing access to up-to-date cost info, and spreadsheets don’t make that easy.

With version control issues and endless back-and-forth emails, outdated data can cause misunderstandings, leading to costly mistakes. When everyone’s not in sync, your project financials can spiral fast.

 

How real-time cost tracking in construction works

Real-time cost tracking is changing the game in construction. Instead of waiting for costs to be processed and entered manually, you get instant visibility into your project’s financial health. Here’s how it works:

  • Cloud-based software and mobile apps automatically collect and update financial data as it happens.
  • Invoice automation, purchase automation and timesheet apps streamline the process by capturing costs directly from the source — whether it’s a supplier invoice, a material order or hours logged by your team.
  • Live snapshots of your costs allow you to spot issues early, react faster and prevent small problems from snowballing into big-budget blowouts.

 

The key benefits of real-time cost tracking software

Switching to real-time cost-tracking software can bring major benefits to your construction cost management. Here are the key advantages:

1. Improved decision making

Real-time data gives you instant visibility into your project’s financials, meaning you can make decisions quickly and confidently. No more waiting for updates or relying on old numbers!

Example: Imagine material costs suddenly spike. With real-time tracking, you can spot the increase right away, adjust your budget or negotiate with suppliers before it impacts your bottom line. With spreadsheets, you might not notice until it’s too late!

2. Enhanced project control

With real-time tracking, you get complete oversight of your project as it happens. You can catch potential issues early and adjust before they spiral out of control.

Example: If labour costs start creeping up due to unexpected overtime, real-time tracking flags it immediately. You can then tweak staffing levels or the project timeline to keep everything on track. Spreadsheets? They’ll let you know after the damage is done!

3. Increased accuracy

Manual data entry is prone to errors, but real-time cost-tracking software eliminates that risk through automation. Less human error, more accurate data.

Example: Invoice automation pulls supplier invoices straight from your inbox and enters them into the system. No more keying in wrong amounts or misplacing invoices. Woohoo! Now you’ve got precise, error-free data every time.

4. Better cash flow management

Knowing your exact financial position in real-time helps you plan ahead and manage cash flow more effectively. No more surprises when it comes to payments!

Example: With supplier invoice automation, you see upcoming payments in real-time, so you’re never caught off guard by a big supplier invoice. It helps you plan better and avoid cash flow crunches. Nice, right?

 

The shift from reactive to proactive cost management

Traditional cost management, especially with spreadsheets, is reactive — you only catch issues after they’ve hit your budget. With real-time cost tracking, you can be proactive.

Instead of waiting for monthly reports to see what went wrong, real-time data lets you spot potential problems as they happen. This way, you can tackle issues early, keeping your project on track and your budget in check.

By shifting to proactive management, you catch budget creep before it blows out, stay ahead of schedule, and ultimately, deliver bigger margins.

 

Integration with other construction management tools

Real-time cost-tracking software seamlessly integrates with existing tech systems, such as project management software and accounting. This creates a unified view of your project data, so everything is connected in one place.

With all your data flowing together, you can make better, faster decisions without hopping between different platforms. Integration also reduces data silos, improving communication across teams and giving you a more efficient way to manage your project from start to finish.

 

Case studies: companies thriving with real-time cost tracking

Wondering about the impact of all this tech stuff? Well, real-time cost tracking isn’t just a theory — it’s delivering tangible results for construction companies.

Here are a few firms that have transformed their financial processes using Lentune’s real-time cost-tracking software:

1. BLR Provincial Construction

BLR faced challenges with manual processes that slowed down cost reporting and created data inconsistencies. After adopting Lentune’s invoice automation and timesheet features, BLR reduced their month-end reporting time from three weeks to just three days. This gave them a clearer picture of project costs in real time, improved cash flow, and allowed them to bid more competitively on projects​.

2. Cook Brothers Construction

Cook Brothers initially tried building their own accounts payable automation system, but it didn’t meet expectations. After switching to Lentune, they fully automated their invoice and purchasing processes, integrating supplier pricing directly into the system. This change made it easier to manage costs, eliminated manual errors, and provided a transparent view of all expenses across multiple locations. As a result, they streamlined operations and improved cost control​. 

 

Wrapping it up

Real-time cost tracking isn’t just the future — it’s the present for construction companies looking to boost margins and profitability.

By ditching spreadsheets and embracing automation, businesses can reduce manual errors, streamline processes, and gain instant visibility into their financial health. The benefits? Faster decision-making, better cash flow management and proactive project control.

From cutting down reporting time to eliminating manual data entry, they’ve transformed how they manage costs — boosting efficiency, reducing overruns, and ultimately improving profitability.

Ready to join companies like BLR Provincial Construction and Cook Brothers Construction who are already seeing these advantages first-hand? Book a demo and explore what Lentune could do for your business:

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