Overwhelmed by Transactions? Upgrade Your Finance Function Before It Hurts Cash
- Jones Financial Accounts
- Oct 13
- 5 min read
Introduction - Upgrade Your Finance Function
If your construction or engineering business is drowning in invoices, card payments, supplier statements, payroll journals, CIS deductions, and project variations, you don’t have a “busy month” you have a systems problem.
High transaction volume is a good sign of growth, but without the right finance function, it creates cash leaks, compliance risk, and confused decision-making.
At Jones Financial Accounts (JFA), we help UK SMEs in construction and engineering turn transactional overload into clarity, control, and profitable growth using CFO-level processes delivered in plain English.
What you need to review
1️⃣ Transaction Processing & Data Accuracy
When your transaction volume explodes, supplier invoices, subcontractor claims, card payments, it’s easy for errors to creep in.
Duplicate invoices, missed VAT reclaims, or incomplete CIS deductions all distort your financial picture. A solid finance function starts with accuracy.
Automate data entry through software like Dext, Hubdoc, or Xero’s built-in capture tools, and ensure every transaction links to the correct project or cost centre. The goal isn’t just tidy books, it’s trustworthy data for management decisions.
2️⃣ Purchase-to-Pay & Subcontractor Management
In construction, this is where most cash leaks occur. Without proper approval workflows, businesses pay for materials twice, overpay on variations, or fail to track retentions.
Implementing structured approval chains and digital purchase order systems stops unnecessary spend and ensures supplier relationships remain strong.
3️⃣ Cash Flow Visibility
Transaction-heavy businesses often see strong sales but have no idea when cash will hit the bank. Weekly cash flow forecasting, automated where possible is crucial.
With consistent oversight, you’ll know whether you can commit to the next project or need to tighten collections first.
4️⃣ Management Accounts & Project Reporting
If your team is processing hundreds of transactions but can’t explain where your margin went last month, your finance function is reactive, not strategic.
You need monthly management accounts that summarise key metrics: revenue by project, gross profit by site, and overhead trends. That’s the foundation for CFO-level insight.
5️⃣ System Integration & Automation
Finally, review whether your systems talk to each other. Many construction and engineering firms still rely on spreadsheets to bridge gaps between estimating, site reporting, and accounting.
Integration between your ERP, payroll, and accounting systems saves hours and reduces manual error.
Why it matters for businesses
When transaction volume outgrows your processes, small errors compound: a miscoded £1,200 material invoice in a £1m business seems minor, until it happens 40 times, across 10 jobs, and your gross margin drops two points without anyone noticing.
Directors make decisions from numbers that aren’t telling the truth. Commercially, that means quoting too low, hiring too fast, or accepting projects that will never clear your overheads.
Stakeholders feel it quickly.
Owners see volatile cash balances and sleepless nights.
Project leads waste hours disputing invoices and chasing delivery notes.
Suppliers lose trust when they’re short-paid or paid late, pushing you onto tighter terms.
Clients notice mistakes in applications or valuations and start holding back payments.
HMRC will happily penalise late or incorrect VAT/CIS returns.
Done right, the upside is immediate. Clean, timely transactions give you real-time visibility: which projects are profitable, which suppliers are drifting, and which sites need intervention now.
With a proper 13-week cash view, you plan tax, payroll, and materials without panic. You unlock better supplier terms because your paperwork is right first time.
Margins improve because job costs are complete and current, so pricing and resourcing decisions are based on fact, not feel.
In short: accurate transactions → reliable reports → smarter decisions → more cash and higher profit.
Strategy to get it right
Board-level priorities
Appoint clear ownership. Give Finance a voice equal to Operations. A Fractional FD/CFO can redesign processes, set policy, and coach the team.
Define the “Golden Rules.” No PO, no pay. All costs must carry a job code, cost category, and VAT/CIS status. Cut exceptions.
Monthly finance rhythm. Board pack includes job margins, WIP, aged debt/creditors, cash forecast, and KPI trends (GP%, overhead run rate, PO compliance).
Finance team actions
Standardise the chart of accounts & job cost structure. Keep it simple but specific to your trade (materials, plant, labour, subs, prelims, variations, retentions).
Automate capture & approvals. Use document capture for invoices, mobile timesheets, and a PO workflow with tiered approval limits.
Implement 13-week cash. Link to sales pipeline, stage payments, and supplier terms; refresh weekly.
Close weekly, report monthly. Weekly checklists (banks, control accounts, CIS/VAT postings) stop month-end pile-ups.
Operations & site actions
PO first. Site managers raise POs before ordering; deliveries are matched and signed on arrival.
Daily cost capture. Timesheets and delivery notes submitted same day; weekly sign-off by the site lead.
Variation control. No variation without written client approval; finance assigns a separate code so it’s visible in margin reviews.
Commercial & sales actions
Price with reality. Use live overheads, prelims, and earned margins in pricing models.
Supplier reviews quarterly. Compare like-for-like baskets, rebates, and service levels; lock in terms that match your cash cycle.
Common mistakes
No PO discipline. Consequence: duplicate/unauthorised spend, supplier disputes, margin erosion.
Job costs posted late. Consequence: you under-price the next bid because last job’s true cost surfaced after sign-off.
CIS/VAT errors (e.g., reverse charge misapplied). Consequence: HMRC penalties, interest, potential loss of Gross CIS status, reputational damage.
Spreadsheet-only WIP. Consequence: broken links, hidden errors, no audit trail; board decisions based on stale or wrong data.
One person does everything. Consequence: no segregation of duties, higher fraud/error risk, single point of failure.
Unreconciled control accounts (PAYE/VAT/CIS/retentions). Consequence: surprise liabilities, cash crunch at quarter-end.
Commercially, suppliers shorten terms; clients scrutinise applications; banks reduce appetite. Internally, morale dips as teams fight fires instead of building.
Misconceptions (three quick truths)
“Automation means less control.” In practice, automation enforces rules consistently and improves control.
“Our external accountant covers this.” Compliance ≠ control. You still need operational finance to manage jobs, cash, and performance.
“We’ll fix it when we’re bigger.” Broken processes scale the pain. The cheapest time to fix finance is before the next growth spurt.
Why professional support pays off
JFA plugs the gap between bookkeeping and boardroom. We:
Clean the data fast (coding, POs, CIS/VAT), so reports you see are reports you can trust.
Automate and integrate your tools to cut manual effort and error.
Build a CFO-grade rhythm (weekly closes, monthly board packs, 13-week cash), turning noise into narrative.
Partner with leadership on pricing, terms, and margin strategy so profits rise without needing “more sales.”The result is time saved, risk reduced, visibility restored, and a strategic plan that funds growth from stronger cash and steadier margins.
Key takeaways
High transaction volume without strong process turns growth into cash and compliance risk.
Fix the first mile (coding, POs, approvals) and reports become decision-ready.
A 13-week cash forecast and monthly WIP turn surprises into plans.
JFA helps you automate, control, and grow profitably with CFO-level discipline.
Wrapping up today's insights, tomorrow we simplify another accounting challenge
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