The smarter way to handle AR/AP forecasting in construction finance

In construction, cash flow is everything. And it all starts with how well you forecast your receivables and payables. Unlike other industries, factors like delays, retainage, and project-based billing make AR/AP forecasting uniquely complex. But Prophix One FP&A Plus helps bridge those challenges.

Let’s look at how FP&A Plus is essential to help construction finance teams forecast with accuracy, stay ahead of cash gaps, and keep projects moving.

What is AR/AP forecasting?

For construction finance teams, accounts receivable (AR) forecasting means projecting when you’ll actually get paid while considering progress billing, retainage, and client delays.

Accounts payable (AP) forecasting involves planning when vendor, subcontractor, and materials payments are due across multiple projects. Unlike other industries, the timing in construction is rarely predictable. That’s why accurate AR/AP forecasting is critical to managing cash flow, avoiding shortfalls, and keeping work on schedule.

Why is AR/AP forecasting important for construction finance teams?

In construction, misjudging when cash is coming in or going out can grind projects to a halt. Without FP&A software, AR/AP forecasting often relies on static spreadsheets, siloed job data, and best guesses based on outdated information.

Finance teams have limited visibility into retainage timing, vendor terms, and billing delays. And that makes it hard to predict cash gaps or prioritize payments across jobs.

With FP&A Plus, that changes. Now you can connect directly to your ERP and project systems, automate the flow of billing and payment data, and forecast at a far more granular level, like project, customer, subcontractor, or vendor.

Real-time updates ensure you’re working with current data, and built-in scenario planning lets you model cash flow impacts based on changing schedules or delayed payments.

The result? Fewer surprises, stronger liquidity, and the ability to confidently fund operations without slowing construction down.

How does FP&A Plus support AR/AP forecasting in construction?

Project-level cash flow forecasting with context

ERPs can tell you what has been billed and what is owed, but they often lack the ability to forecast when you’ll get paid or need to pay out, especially across multiple jobs.

FP&A Plus allows you to build AR/AP forecasts at the project level, factoring in contract terms, billing schedules, retainage rules, and historical payment behavior. The difference? You can model cash inflows and outflows with a full view of job-specific performance, timelines, and risks. This lets you make smarter cash decisions and more accurate projections that ERPs or point tools simply can’t support.

Dynamic scenario planning across jobs and portfolios

Construction is unpredictable. Delays, change orders, and payment lags are unfortunately the norm. And with static spreadsheets or point solutions, it’s difficult to plan for any scenario.

It doesn’t have to be difficult, though. With FP&A Plus, you can run what-if scenarios across your AR/AP forecasts to see how shifting payment timelines or vendor terms affect your overall cash position.

Unlike ERP or point tools that operate in silos, FP&A Plus lets you test scenarios across all jobs, regions, or entities in one place. This gives you a portfolio-wide view of liquidity risk and the ability to adapt your payment strategies in real time, giving you back the control you need to stay ahead.

Holistic planning that connects cash flow to labor, materials, and project health

Standalone AR/AP tools or ERP modules don't give you the full picture. FP&A Plus brings your cash forecasting into the same environment as your labor planning, material cost forecasts, overhead projections, and margin analysis.

Now you can see how a delay in receivables affects your ability to fund payroll, procure materials, or bid on new work. This level of connected planning helps you make better trade-offs, prioritize projects, and protect profitability – even when cash flow gets tight.

How does FP&A Plus support AR/AP forecasting in construction?

Now you can take control of AR/AP forecasting with FP&A Plus.

In construction, staying ahead of your cash flow isn’t optional, it’s mission critical. And AR/AP forecasting is at the heart of it. While ERPs and point solutions can track transactions, only FP&A Plus gives you the full picture: real-time AR/AP forecasts, project-level visibility, dynamic scenario planning, and complete integration with your broader financial and operational strategy.

With FP&A Plus, you’re not just reacting to cash flow, you’re actively planning for it. That means fewer delays, better vendor relationships, and more confident decision-making across every job.

To learn more about how FP&A Plus helps construction teams deliver more value, register for our upcoming AR/AP Forecasting Coffee Talk.