To finance slow payments, the estimated overhead included in subcontractors’ bids is 2.75% and 5.81% for general contractors. This year’s report uncovered that slow payments to subcontractors and general contractors will create $136B in additional costs for the US Construction Industry in 2021.
Rabbet Customers Can Now Send Invoices Data Directly to AvidXchange
We are excited to announce that Rabbet has partnered with AvidXchange, a leading solution for automating invoice and payment processes. Rabbet customers who add the Send to AvidXchange feature can now easily send coded invoices directly to AvidXchange for invoice processing, payment, and posting to accounting systems. This allows real estate development teams and accounting teams to work together seamlessly, saving time and boosting availability of information for all involved in the invoice process.
Why use Rabbet and AvidXchange together?
Development teams often operate outside of standard systems, relying on spreadsheets. Accounting teams take on the burden of keeping records, but rely on reconciliations with the development team. These dynamics mean extra administrative time for everyone involved, decisions based on out-of date information, and a lack of visibility for senior management, compromising both the bottom line and reputations with capital partners.
As a result, teams end up doing redundant data entry across multiple systems leading to wasted time and costly mistakes. The new connection between Rabbet and AvidXchange’s AvidInvoice solves this problem.
With this new functionality users no longer need to manually enter information in two systems.
Leading real estate companies have discovered the benefits of combining development management software with AP automation software to manage development projects and financial processes. Operating from the same information empowers both teams to make more informed decisions, reallocate time to value-add activities, and support stronger lender and equity partner relationships.
Sending invoice information from Rabbet to AvidXchange:
- Add invoices to Rabbet for AI-assisted document sorting and data extraction
- Tie cost to budget line item, cost code, contract, and draw
- Development team approves invoice in Rabbet
- Post invoices to AvidInvoice with document, invoice data, and record of approvals
This new partnership will allow real estate development teams to have a seamless connection between electronic invoice processing, payments, budget management, and automated reporting for capital partners. Interested in learning more? Contact us today.
Already a Rabbet customer? Please reach out to your customer success manager to learn more.