In the construction industry, precise job costing is crucial to profitability. Knowing where every dollar goes — labor, materials, overhead — is essential not just for maintaining a balanced budget but for accurately bidding and managing future projects. QuickBooks Online (QBO) is a trusted financial management tool, and when paired with Buildertrend, it elevates job costing capabilities, offering a streamlined, accurate, and insightful way to track project costs.
This blog explores the nuances of job costing when using Buildertrend and QuickBooks Online together, and why this integration surpasses traditional job costing methods.
What is Job Costing and Why Does it Matter?
Job costing is a detailed method of tracking costs associated with a specific job or project. For construction companies, effective job costing is essential to:
- Budget Accurately: By tracking costs in real-time, companies can assess if they’re within budget or need to make adjustments.
- Evaluate Project Profitability: Knowing exactly how much each job costs allows companies to determine whether a project is profitable.
- Plan for the Future: Detailed cost data helps in making more accurate bids for future projects, improving the chances of winning contracts and boosting profitability.
While QuickBooks Online provides an excellent foundation for tracking financial data, it lacks specific construction-focused project management features. That’s where Buildertrend comes in, bringing advanced job costing capabilities tailored to construction needs.
How Buildertrend and QuickBooks Online Work Together for Job Costing
Buildertrend’s integration with QuickBooks Online allows for streamlined job costing, connecting real-time project data with financial records. Here’s how this integration benefits job costing, with some key distinctions from using QuickBooks alone.
1. Detailed, Real-Time Job Costing
- Without Integration: With only QuickBooks, job costing can be labor-intensive and prone to delays. Often, costs must be entered manually, meaning delays in tracking labor, materials, and equipment expenses can result in outdated financials and missed cost overruns.
- With Buildertrend Integration: Buildertrend allows team members to enter expenses directly from the field. As expenses occur, they sync with QuickBooks Online in real time, providing accurate job cost reports. This integration reduces manual data entry and keeps both on-site and office teams aligned on current financials.
2. Effortless Labor Tracking
- Without Integration: Labor tracking in QuickBooks often lacks the nuances of real-time updates from the field. This makes it challenging to capture accurate labor costs associated with specific tasks or phases.
- With Buildertrend Integration: Buildertrend’s time-tracking tool allows crews to log hours specific to tasks directly into the system. These hours automatically sync with QuickBooks Online, creating accurate labor cost data linked directly to each job. This detailed labor tracking gives insights into labor efficiencies or overages at a granular level, helping identify potential cost savings on future projects.
3. Enhanced Materials and Purchase Orders Tracking
- Without Integration: Manually managing material purchases and tracking them to individual jobs can be complex and error-prone when relying on QuickBooks alone. Assigning each purchase to the correct job requires significant administrative oversight.
- With Buildertrend Integration: Buildertrend allows users to create purchase orders and assign them to jobs, which sync with QuickBooks Online, providing a seamless record of material costs. With Buildertrend’s field accessibility, project managers can also make material purchases on-site, and these expenses automatically connect to the job in QuickBooks, saving administrative time and ensuring accuracy.
4. Change Order Management
- Without Integration: Managing change orders without Buildertrend can be cumbersome. QuickBooks may track these as separate invoices or additions, but keeping track of approvals, cost impacts, and real-time budget changes can be challenging.
- With Buildertrend Integration: Buildertrend offers a streamlined change order feature that allows project managers to track, approve, and account for change orders easily. Once approved, these changes automatically sync with QuickBooks, updating the budget to reflect the change and ensuring accurate job cost data. This real-time adjustment is invaluable for project control and financial accuracy.
5. Accurate Overhead Allocation and Indirect Costs
- Without Integration: Allocating overhead costs without Buildertrend often involves spreadsheets and manual calculations, resulting in less precision and potential misallocations.
- With Buildertrend Integration: Buildertrend’s detailed job costing features allow for more nuanced allocation of indirect costs such as equipment usage, supervision, or safety expenses. These costs are applied directly to jobs in Buildertrend and synced with QuickBooks, ensuring that each project bears its fair share of overhead. This capability not only aids in more accurate job costing but also gives a clearer picture of each job’s true profitability.
Why Buildertrend and QuickBooks Integration is Superior to Traditional Methods
1. Time Savings and Reduced Errors
- By syncing Buildertrend with QuickBooks, companies cut down on manual data entry and its associated errors. Data flows seamlessly between both systems, ensuring accuracy and reducing redundant efforts. This time-saving integration frees up project managers and financial teams to focus on strategic activities instead of admin work.
2. Real-Time Decision-Making
- With up-to-date cost data at their fingertips, teams can make proactive adjustments rather than reactive ones. For example, if labor costs start to exceed the budget, the project manager can address this immediately, rather than discovering it weeks later in a financial report.
3. Improved Client Transparency
- The integration allows companies to provide clients with accurate and detailed reports on project costs, enhancing trust and transparency. Builders can communicate exactly where funds are going, and clients can see the value in real time.
4. Better Forecasting for Future Projects
- The detailed data captured by Buildertrend and synced with QuickBooks Online creates a valuable repository of project costs. This historical data enables companies to make better-informed bids and financial projections for upcoming projects, reducing the likelihood of underestimating costs and improving bid accuracy.
Setting Up Job Costing Integration Between Buildertrend and QuickBooks Online
Setting up job costing integration between Buildertrend and QuickBooks Online requires a few steps, but the long-term benefits are substantial. Here’s a quick guide to help get started:
- Create a Buildertrend Account: Make sure the Buildertrend account is set up and that you have administrative access for integration settings.
- Sync Buildertrend with QuickBooks: In the settings menu in Buildertrend, follow the prompts to connect QuickBooks Online. Choose the settings that reflect your job costing needs (e.g., mapping accounts, setting job costing categories).
- Map Cost Codes: To ensure seamless data transfer, map your cost codes in Buildertrend to the corresponding accounts in QuickBooks Online. This mapping allows expenses in Buildertrend to reflect accurately in QuickBooks.
- Test and Verify: Run test transactions for expenses and labor entries to ensure they transfer correctly. Verify that job cost reports in QuickBooks match what you see in Buildertrend.
Final Thoughts: Buildertrend and QuickBooks Online integration provides a comprehensive approach to Job Costing
The Buildertrend and QuickBooks Online integration provides a comprehensive approach to job costing that is both streamlined and insightful. By automating data transfer between field activities and financial records, this integration empowers construction businesses with precise cost tracking, timely insights, and better financial management across projects. Traditional methods lack the construction-specific features Buildertrend provides, making the integration an invaluable asset for contractors and construction firms focused on profitability and efficiency.
Incorporating smart job costing with Buildertrend and QuickBooks Online is a game-changer for construction businesses seeking consistent profitability and operational clarity. This powerful integration not only streamlines processes but also provides actionable, real-time insights that allow project managers and financial teams to make well-informed decisions. By reducing errors, enhancing accuracy, and aligning field and financial data seamlessly, construction companies can unlock greater profits and set themselves up for lasting success. With Buildertrend and QuickBooks Online, companies are not just tracking costs; they’re investing in a more efficient, profitable future.
About 24hr Bookkeeper
At 24hr Bookkeeper, we specialize in helping construction companies streamline their bookkeeping and financial management processes. As experts in both Buildertrend and QuickBooks Online, we support construction businesses in achieving accurate job costing, seamless financial integration, and more profitable projects. Reach out today to learn how we can help you make the most of these powerful tools.
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Ready to take your job costing to the next level? Schedule a consultation with us to explore how we can support your business goals.
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