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Cost Code Standardization with Your Job Management Software at MyBuilderCPA



Hello, Jon Markee here, founder and CEO of MyBuilderCPA. Today, I want to discuss the importance of cost code standardization with your job management software, especially when integrated with QuickBooks Online. This process can be tricky due to varying levels of integration and the complexities involved. Let's break down how we handle this at MyBuilderCPA.

Understanding Integration with QuickBooks

Integration with QuickBooks Online is not always straightforward. Different job management software might claim to integrate with QuickBooks, but the extent of integration can vary significantly. Some apps might only sync customer and vendor lists, while others might integrate the chart of accounts. It's crucial to understand the specific level of integration before proceeding.

Setting Up Correct Integration

Our first goal is to ensure that your job software is integrated correctly with QuickBooks. We prefer using the NAHB (National Association of Home Builders) standard listing of cost codes. However, we understand that this might not fit every business perfectly, so we are open to creating custom cost codes tailored to your needs.

Importance of Purchase Orders

Whenever possible, creating a purchase order in advance helps streamline the process. It allows you to specify exactly what you are buying from your subcontractor or vendor. When we receive both the bill and the purchase order, matching them becomes straightforward, ensuring accuracy in your records.

Mapping Cost Codes

Let’s take BuilderTrend as an example. We aim to map all cost codes once and only once. Often, new clients have cost codes that were created without understanding the impact on QuickBooks. This can result in cost codes that are either unmapped, mapped multiple times, or not integrated correctly, leading to duplicate transactions or missing data.

Regular Review and Standardization

At the same frequency as your transaction entry, we review your cost code listing to ensure it is standardized and reliable. We aim for a structure that resembles the NAHB standards and is correctly mapped with QuickBooks. This ongoing review helps prevent issues such as duplicated transactions, which can distort your financial data and impact your decision-making.

Customizing to Your Needs

Every business is unique, and we understand that no two clients use the exact same cost code structure. If you need to add or subtract cost codes, please reach out to us first. We can facilitate the process more accurately and efficiently, ensuring your cost codes align with your financial and operational requirements.

Continuous Improvement

As we work together, we'll periodically reach out with questions or suggestions to improve your cost code structure. Whether it's merging similar cost codes or splitting transactions for better clarity, our goal is to keep your financials as accurate and useful as possible.

Conclusion

Standardizing cost codes and ensuring proper integration with QuickBooks is essential for accurate financial management. At MyBuilderCPA, we take a proactive approach to maintain and improve your cost code structure, tailored to your unique business needs. If you have any questions or need assistance, don't hesitate to reach out.

Thanks for watching, and have a great day!

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