Below are a few simple tips that Buildertrend recommends when deciding on what Cost Codes to use for your company.

Keep Cost Codes as simple as possible:

When you first start using Cost Codes, you want to ensure that each code has a legitimate purpose and is used on most jobs. As you start to build your Cost Code structure, you should think about what is involved in the scope of your projects. This is a great way to determine how you will track your job costs.

Utilize a numbering system.

To create consistency across your company and make your Cost Codes easy to locate, it helps to include a number for each Cost Code. This will keep your system organized and allow all Cost Codes to be sorted based on their numerical value in drop-down menus. To identify a numbering system, think through the process of construction from preliminary tasks to construction and punch list items.

Get input from people in your company who will be using these codes daily.

Having multiple sets of eyes, across all departments review your Cost Codes will eliminate any missed variables that one department may need. This will help you avoid having to recreate or modify your Cost Codes after your processes have already been established within Buildertrend.

Avoid a cost code for every single item you estimate for.

Cost Codes can be used as multiple line items in a single estimate, bill, purchase order, etc. By utilizing the Title & Description boxes underneath each line item, you will be able to provide context for each item while tracking the costs against the same code.

Try not to use sub codes extensively.

Sub codes do not provide additional reporting from within Buildertrend and may cause more confusion when viewing your Budget. If you feel that you need to see a higher level break down, it is best to create more categories and assign codes to those categories rather than utilize parent or sub codes.

Make sure your codes are not redundant.

Codes that overlap between categories should be avoided to prevent confusion and data entry errors. Spend time looking for inefficiencies that can be eliminated before finalizing your Cost Code list.

📌Don't Forget:

⚈ If you are utilizing numbers with your Cost Codes, ensure that you include leading zeros for the total number of digits your highest number includes. For example, if the largest number is 999, then you want your first code to be 001.

⚈ Any text you apply to the details section within the New Cost Code setup window will not be visible when using the Cost Code throughout the platform. This text box is intended to be used for internal administrative notes regarding the reason for the creation or deactivation of the Cost Code.

Cost Codes in Buildertrend are related specifically to job costs that you incur per project. Any overhead or general costs should be tracked within your accounting system.

🧰 Pro Tip:

Depending on the needs of your company, you will want to consider tracking specific codes based on Labor and Materials separately. Some companies may be able to function with as few as five to 10 codes while others find it necessary to utilize a few hundred. If you are unsure about how simple to keep your codes, reach out to your account executive to discuss your options.

Our team has extensive knowledge in setting up and auditing Cost Codes to ensure the most essential part of your business is set up correctly within Buildertrend.

What's Next? How Are Cost Codes Set Up In the Platform?

🚀Jump Ahead:

How to Use Cost Codes

Variance Cost Codes

Setting Up Your Cost Catalog

How to Use the Cost Catalog

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