Introduction: In the world of construction accounting, using catch-all vendors like BuilderTrend Misc may seem convenient, but it often leads to significant confusion and complications. In this blog post, we'll explore why you should avoid using BuilderTrend Misc and how creating specific vendors for common expenses can help you maintain accurate and organized financial records. Insights from our recent video with Jon Markee, your Builder CPA, will guide you in improving your accounting practices with BuilderTrend.
The Problem with BuilderTrend Misc: BuilderTrend Misc is a default vendor option in BuilderTrend, a popular job software. When you enter a bill without specifying a vendor or a cost code, it defaults to BuilderTrend Misc. While this might seem like a convenient catch-all, it actually complicates the payable process and creates confusion. Mixing up various expenses under a single vendor makes it difficult to track actual payables and understand what you owe to whom.
Impact on Payables and Reconciliation: Using BuilderTrend Misc can lead to major headaches when reconciling accounts. For example, if you enter expenses like gas station purchases and meals under BuilderTrend Misc, they can get mixed up with legitimate vendor payables. This lack of clarity can result in missed payments, duplicate payments, and a general mess that is time-consuming to fix. It becomes a nightmare to separate different types of expenses when you need to reconcile your accounts.
Creating Specific Vendors: To prevent these issues, create specific vendors for common expenses such as "Gas Station" and "Restaurant." This allows you to book daily transactions separately from vendors with whom you have long-term credit relationships. When it comes time to calculate how much you owe to a specific vendor, it becomes a simple query in QuickBooks. This practice keeps your payables organized and makes it easier to track specific expenses.
Benefits of Avoiding BuilderTrend Misc: By avoiding BuilderTrend Misc and booking bills to the correct vendor and cost code, you maintain the accuracy of your payables and simplify the reconciliation process. When you see something in BuilderTrend Misc, you’ll immediately know it’s an error that needs to be addressed. This approach saves you time and ensures your financial records are accurate and reliable.
Conclusion: Using BuilderTrend Misc as a catch-all vendor might seem convenient, but it creates significant complications in your accounting process. By creating specific vendors for common expenses, you can keep your financial records organized and accurate, saving time and reducing confusion. For more insights, watch our latest video where Jon Markee, your Builder CPA, explains the importance of avoiding BuilderTrend Misc and offers practical tips for improving your accounting practices with BuilderTrend.
By implementing these practices, you can streamline your payables and ensure that your financial records are precise and manageable.