The Construction Financial Management Association (CFMA) hosted its highly anticipated 2025 Annual Conference in May in Kissimmee, Florida, drawing construction finance professionals from across the country for five days of education, innovation, and networking. Here are our key takeaways from the event.
A Hub for Financial Leadership in Construction
This year’s conference focused on the evolving role of financial leaders in the construction industry, emphasizing the integration of technology, data analytics, and strategic leadership. Attendees had the opportunity to earn continuing professional education (CPE) credits through a wide range of sessions tailored to both emerging and seasoned professionals.
Key Themes & Sessions
The Forward-Looking CFO
A standout session explored how CFOs can leverage emerging technologies and data to drive strategic decision making. Speakers emphasized the importance of digital transformation in maintaining competitive advantage and operational efficiency. This session also underscored the CFO’s role in ensuring audit readiness:
- Governance & Risk Management: CFOs are expected to implement robust internal controls and risk assessment frameworks that auditors rely on.
- Data-Driven Decision Making: Auditors increasingly evaluate how financial leaders use analytics to support estimates and judgments in the financial statements.
Annual Tax Update
Experts provided insights into the latest tax legislation and its implications for contractors, offering actionable strategies for tax planning and compliance in a shifting regulatory landscape. The annual tax update session also highlighted regulatory changes that impact audit procedures, such as:
- Tax Provision Accuracy: Auditors will scrutinize how companies apply new tax laws in their financial statements.
- Deferred Tax Assets/Liabilities: Changes in tax legislation may affect valuation and disclosure, increasing the need for precise documentation and audit support.
AI & Automation in Construction Finance
With artificial intelligence (AI) making waves across industries, this session showcased real-world case studies where AI improved project timelines, cost control, and productivity. Attendees learned how to evaluate and implement AI tools effectively, specifically relating to work-in-progress (WIP) automation. Automating WIP schedules can significantly enhance the accuracy and efficiency of financial reporting, especially in industries like construction where project tracking is complex. Here are some key benefits:
- Improved Accuracy: Automated WIP tools reduce the risk of human error associated with manual data entry and calculations. This helps ensure financial statements reflect the true progress and costs of ongoing projects.
- Enhanced Efficiency: Automation streamlines the process of updating WIP schedules, saving time and resources. This allows finance teams to focus on more strategic tasks rather than getting bogged down in manual updates.
- Better Project Visibility: Automated WIP schedules provide real-time insights into project performance, helping managers make informed decisions and adjustments as needed.
- Compliance & Reporting: Automated systems can align WIP reporting with industry standards and regulatory requirements, reducing the risk of noncompliance.
- Audit Trail Integrity: Automation tools create detailed logs of changes and approvals, which are critical for auditors to verify the accuracy and completeness of financial data.
- Proactive Management: With accurate and timely WIP data, companies can proactively manage their projects to help stay on budget and schedule.
Overall, automating WIP schedules can be a valuable investment for companies looking to improve their financial reporting and project management processes.
Software Selection Pitfalls
A practical session addressed the top five mistakes contractors may make when choosing financial and project management software. Attendees walked away with a framework for evaluating and negotiating software solutions. The framework includes:
- Ignoring Integration Capabilities: Contractors often overlook whether the new software can integrate seamlessly with their existing systems. This can lead to data silos and inefficiencies.
- Underestimating Training & Support Needs: Many contractors fail to consider the level of training and ongoing support required for their team to effectively use the new software. Without proper training, the software’s potential may not be fully realized.
- Focusing Only on Price: While budget is important, choosing software based solely on cost can be detrimental. Cheaper options might lack essential features, leading to higher long-term costs due to inefficiencies.
- Neglecting Scalability: Contractors sometimes choose software that meets their current needs but doesn’t scale as their business grows. This can result in the need to upgrade systems later, which is costly and disruptive.
- Overlooking User Experience: If the software is not user-friendly, it can lead to low adoption rates among employees. A complex interface can hinder productivity and lead to frustration.
This session emphasized the importance of integration and user experience, which are key to audit success:
- System Integration: Poorly integrated systems can lead to data silos, increasing the risk of misstatements and complicating audit procedures.
- User Access Controls: Auditors assess whether financial statements have appropriate access restrictions and audit logs to prevent unauthorized changes.
Networking & Peer Learning
Beyond the classroom, the conference featured numerous networking events, including a member and guest happy hour, allowing professionals to exchange ideas and build lasting industry connections.
Looking Ahead
The conference reaffirmed the CFMA’s commitment to empowering financial professionals in construction with the tools, knowledge, and community needed to thrive in a rapidly changing environment. As the industry continues to embrace innovation, CFMA remains a vital resource for navigating the future of construction finance. Interested in learning more about these topics? Explore our construction technology solutions or reach out to a professional at Forvis Mazars.