How Home Builders Can Use ChatGPT And Where to Be Careful

Introduction:

Artificial intelligence is everywhere, and many home builders are wondering if tools like ChatGPT can replace accountants, bookkeepers, or even CFOs. In this blog post, Jon Markee, your Builder CPA, explains how AI can be a powerful financial analysis tool, when used correctly, and where builders need to be cautious to avoid costly mistakes.

Will AI Replace Accountants? Not Quite Yet

There’s a growing belief that AI will completely replace financial professionals. While AI tools like ChatGPT are impressive, they are not yet reliable enough to fully manage accounting or financial strategy. As Jon explains, the more you use AI, the more you’ll notice inaccuracies and limitations, especially when it comes to integrated systems like QuickBooks Online paired with job-costing software such as Buildertrend.

AI agents aren’t currently capable of independently performing accounting tasks, particularly in construction environments where job costing, work in progress, and integrations add complexity.

Integration Gaps with Job Costing Software

While Intuit continues to make strides with AI inside QuickBooks Online, job-costing platforms like Buildertrend and JobTread are not advancing at the same pace. For builders who rely on these integrations, AI still struggles to fully understand how costs flow between systems. This makes human oversight essential to ensure accuracy and proper classification.

Data Security and Confidentiality Risks

One major concern builders should be aware of is data privacy. Anything entered into ChatGPT could potentially become part of its broader learning model. That means confidential financial metrics, profit margins, job costs, or cash flow data, should never be entered casually.

If you’re using AI tools for financial analysis, it’s critical to use a paid subscription and understand how your data is handled. In this example, Jon uses a QuickBooks sample account to avoid exposing real client information.

Using ChatGPT as a Senior Financial Analyst

Rather than trying to replace a CFO, Jon recommends positioning ChatGPT as a senior financial analyst. The goal isn’t automation, it’s insight.

By prompting ChatGPT to ask up to 20 questions about your home building business, you can train it to understand:

• Revenue streams (new construction vs. remodels)

• Cost drivers like materials and labor

• Job costing methods and WIP accounting

• Financial KPIs and profitability goals

• Growth strategy and risk management

Answering these questions creates a customized analytical framework that allows ChatGPT to provide more meaningful feedback.

Uploading Financial Statements for Analysis

Once the model understands your business, you can upload your profit and loss statement and balance sheet and ask critical questions, such as:

• Where might the books be wrong?

• What doesn’t make sense in the financials?

• Where can profitability be improved?

• What questions should I be asking my CPA or accounting team?

Jon emphasizes that errors exist in nearly every set of financials he reviews, not because people are careless, but because accounting involves judgment, assumptions, and classification decisions.

Common Issues AI Can Help Identify

ChatGPT can be surprisingly effective at flagging:

• Chart of accounts issues

• Misclassified expenses

• Overuse of “Other” expense categories

• Open balance equity problems

• Missing reconciliations

• Capitalization and depreciation inconsistencies

It can also suggest operational improvements, such as implementing purchase orders, which Jon notes can reduce job costs by 10–15%, and tightening change order discipline to protect margins.

Closing the Communication Gap

One of the biggest breakdowns between builders and accounting professionals is communication. Builders often don’t know what questions to ask, and accountants don’t always know what information is missing until it’s too late.

ChatGPT can help bridge that gap by generating thoughtful, targeted questions that improve collaboration and lead to better financial reporting.

Final Thoughts

AI isn’t here to replace your CPA, but it can absolutely make you a better, more informed business owner. When used correctly, ChatGPT can function as a powerful analytical tool that highlights weaknesses, sparks better conversations, and helps improve profitability.

The key is using AI strategically, protecting your data, and pairing technology with experienced financial professionals. For home builders, that combination is where real financial clarity, and growth, happens.