The Cost of Disconnected Rental and Financial Systems
For construction companies managing a fleet of equipment, seamless financial tracking is essential. Yet, many firms use construction equipment management software that doesn’t integrate with their financial ERP, leading to inefficiencies and errors.
If your finance team manually re-enters rental invoices, purchase orders, asset depreciation, and cost allocations into separate systems like CMiC, SAP, Oracle NetSuite, Viewpoint Vista, or JD Edwards, your company is wasting time and increasing the risk of errors.
Conner Nelson, Asset and Fleet Manager at Big-D Logistics, shared his experience: “In the past, we used static Excel sheets with 40 to 60 tabs, manually entering every line item into our accounting system. If a job site had a piece of equipment for 29 days but returned it on the 30th, and we billed on the 31st, it wouldn’t even show up. Those 29 days were essentially free because our tracking was outdated.”
Integrating rental and financial software eliminates inefficiencies, improves accuracy, and ensures project budgets stay under control. This article outlines the risks of disconnected systems and how construction companies are solving these issues with integrated solutions.
The Pitfalls of Disconnected Equipment Management and ERP Systems
- Manual Data Entry Increases Errors and Risk
Every time rental contract details, invoices, or purchase orders are manually entered into multiple systems, the risk of errors increases. A mistyped equipment rate or incorrect job site allocation can cause billing disputes, delayed payments, and budget overruns.
Research shows that 88% of spreadsheets contain errors (McKinsey & Company). Nelson noted, “I was seeing double bills, triple bills on the same pieces of equipment. Vendors don’t care. They’ll send invoices, and if you don’t have a system tracking that, you won’t catch it.”
For construction companies managing millions in rental transactions, even small errors result in significant financial losses. Without real-time data synchronization, finance teams must spend extra time verifying transactions, increasing administrative overhead and slowing decision-making.
- Inefficient Processes Waste Time and Reduce Productivity
Disconnected systems slow productivity. Without real-time integration between rental software and ERP platforms like CMiC, SAP, or Viewpoint Vista, finance teams must manually reconcile data, update cost allocations, and resolve discrepancies.
According to McKinsey & Company, up to 30% of finance department tasks can be automated, allowing teams to focus on cost analysis and forecasting (McKinsey & Company). Without ERP-integrated equipment management, companies rely on slow, error-prone manual processes, leading to delays and higher costs.
Nelson described the previous billing process: “We had to take every single line item from a job site invoice and manually enter it into the accounting system. That process alone took two full days, increasing errors and delaying financial reporting.” After integrating an equipment management system with their ERP, he said, “Now, I generate a single bill, and it exports a detailed report for each job site. We give them a week to review it, request any adjustments, and then finalize it—everything is consolidated.”
- Lack of Real-Time Financial Visibility Causes Budget Overruns
Without real-time integration, finance teams work with outdated data, making it difficult to manage job site budgets. Delays in financial updates can lead to overspending.
For example, if a project manager extends an equipment rental but finance doesn’t receive this update immediately, the company may exceed its budget. Companies using real-time financial tracking have reported a 15% reduction in project cost overruns (McKinsey & Company).
One construction firm faced similar challenges before implementing an integrated system. Nelson recalled, “If an invoice sat for 60 days, we would just pay it—didn’t matter what it was for. This yard was hemorrhaging hundreds of thousands, if not millions of dollars every year.” After integration, he saw significant improvements: “Now, we have full visibility and control over costs. Instead of losing money, we’re seeing substantial savings.”
The Solution: ERP-Integrated Software for Construction Equipment
To eliminate errors and inefficiencies, construction companies are adopting ERP-integrated equipment management software. By connecting rental operations directly with financial ERPs like CMiC, SAP, JD Edwards, and Viewpoint Vista, companies will streamline workflows and improve accuracy.
By integrating construction equipment management software with financial ERPs, construction companies optimize operations, reduce risk, and improve profitability. If your finance team is still manually reconciling rental and financial data, now is the time to take action.
Reach out to RentalResult today to learn how we seamlessly integrate with your financial systems, eliminate manual processes, and synchronize your operations for maximum efficiency. Let’s get your systems connected.
