Hello friends, Jon Markee here, founder and CEO of MyBuilderCPA. Today, we're going to talk about job software online payment entry. Many builders are not familiar with this concept and don't understand its importance. We'll use BuilderTrend as an example since it's a tool we frequently encounter.
What is Online Payment Entry?
Many builders send owner invoices from BuilderTrend, allowing them to get paid electronically and quickly, which is fantastic. However, BuilderTrend often processes these invoices and combines them into batches before depositing them into your bank account as one lump sum. While you're thrilled to see the funds, this can cause issues when recording these transactions and marking owner invoices as paid.
Accurate Payment Recording
At MyBuilderCPA, we ensure all owner invoices are correctly entered into QuickBooks, combined in undeposited funds, fees recorded, and matched to the deposit. This process gives you and your team an accurate picture of which invoices have been paid versus those that have not, all seamlessly integrated with QuickBooks and matched in the bank feed.
The Challenge of Undeposited Funds
One significant risk if not handled correctly is dealing with undeposited funds. Undeposited funds are an abstract concept that even many accountants struggle with. Essentially, it represents the short time when you collect payments but haven't yet deposited them into the bank. If not managed correctly, transactions could be duplicated, leading to incorrect revenue figures.
Ensuring Accuracy and Avoiding Errors
To avoid errors, we ensure BuilderTrend posts owner invoices into a bank deposit, known as undeposited funds, and creates journal entries for the fees. When you look at the transactions deposited on the same date, you can select all and complete the deposit, matching it to the bank feed. However, for this to work smoothly, the three key pieces of data—customer, vendor, and cost code—must be correctly mapped.
Preventing Pain and Agony
At MyBuilderCPA, we strive to prevent the pain and agony of dealing with these issues. We ensure accurate owner invoice entries, preventing you from chasing down the wrong homeowners for payments and maintaining a professional image.
If you have any questions about online payment entry or any of our other services, don't hesitate to reach out. Thanks for reading, and have a great day!