Managing Bills & Expenses in Buildertrend
Implementing Bills into your QuickBooks Online workflow will streamline your accounting processes and enhance your financial operations by eliminating duplications and boosting reporting capabilities with detailed insights at the Project & Services level.
Which QuickBooks workflows will be effected when implementing Bills?
Match Bill to bank transaction instead of creating a new expense
Remove bank rules for Cost of Goods Sold accounts to prevent auto-created expenses
Pay Bills with checks instead of creating a type check transaction
Note: If you have already created a check in QuickBooks, there are two ways to get this cost into your Buildertrend budget while avoiding duplicated costs.
1. Enable Include costs entered in QuickBooks in the budget under the Advanced Settings section of the Job Details.
2. Create a bill in Buildertrend but DO NOT push it to QuickBooks. Then mark that bill paid with an offline payment.
Bank Feed | Matching Bills & Invoices
When purchasing ad hoc materials or services for a project, matching a Buildertrend Bill to a transaction in your bank feed helps keep both your accounting records and Buildertrend budget in sync.
💡Pro Tip
Matching Bills in the QuickBooks Bank Feed will be commonly used with the Cost Inbox.
For more information on how to scan your receipts into Buildertrend and to create a Bill from the Receipt, review this article.
For more information on how to push the Bill created from the Receipt to QuickBooks, review this article.
This ensures actual costs are accurately reflected in the Job Costing Budget, prevents duplicate entries, and gives your team real-time visibility into project spend.
By maintaining this alignment, you’ll streamline reconciliation and improve financial reporting across both platforms.
‼️ The walkthrough below uses Bills as the example. To match Invoices, follow the same steps, just substitute “Bill” with “Invoice.” ‼️
Create a Bill in Buildertrend. Be sure to push the Bill over to QuickBooks.
In QuickBooks, navigate to Bank transactions.
If there is a transaction of the exact same amount, QuickBooks will suggest a match for the unpaid Bill.
Click Match to create a Bill payment.
Results may populate multiple matches.
Select the correct option and click Match.
Once the Bill payment has been created, both Bills will be marked as paid.
Having trouble finding a match?
If QuickBooks doesn’t automatically suggest matches, often due to discrepancies in the vendor, invoice date, or total, you can manually search for a match.
Navigate to Bank Transactions in QB. Select the transaction you wish to match and click Match.
From the Find other matches popup window, utilize the filters to locate the Bill you wish to match to the transaction.
Online Payments
When invoices and payments are sent to QuickBooks from Buildertrend, they must be matched to bank transactions to reconcile deposits. While QuickBooks may recognize some matches exactly, often a bank fee will need to be accounted for.
Choose the appropriate Invoice options in the QuickBooks integration settings, located in the Client tab of the Job Details.
Choose an account to send your record of payment to via the Deposit Online Payments dropdown.
Choose an expense account to post the payment processing fees via the Expense Account for Online Transaction Fees dropdown.
For more information on configuring your Integration Preferences in Buildertrend, check out this article!
Reconciling Payments sent from Buildertrend
Using the Undeposited Funds Account
If payments are sent to the Undeposited Funds account, both the payment and the journal entry for the payment processing fee will be available to combine into a deposit. You can then match this deposit to the bank transaction by following these steps:
Navigate to the Bank deposits in your QuickBooks.
Create the deposit by checking the payment and journal entry.
*Note: If there are multiple transactions, ensure that the reference numbers on both the payment and the journal entry you are merging are the same.
Ensure the deposit date and checking account are correct before selecting Save and Close.
QuickBooks will now suggest a match to the deposit. Clicking match will resolve this transaction.
Reconciling Payments sent from Buildertrend
Using the Checking Account
When reconciling payments using a Checking Account, direct your Deposit Online Payments to the desired checking account in your Accounting Settings Preferences.
Navigate to and open the transaction in the Bank Feed. Verify that the suggested match is accurate. If so, select match.
*Note: When Buildertrend pushes the payment and journal entry (for the bank fees), initially the payment and journal entry will be sent to your Undeposited Funds until a Bank Deposit can be created for a match in the bank feed.
Buildertrend will automatically create the deposit slip within 2 business days (when the payment is processed with your bank)
Payroll
The Time Clock is used to track labor for job costing and payroll processing, thus making it an efficient tool for processing payroll.
While Buildertrend transfers employee data, including the associated cost code (P&S), dates and times worked, and the project/job details, it does not map to QuickBooks payroll items. These payroll items must be set up and assigned to each employee in QuickBooks through the Weekly Time Sheet.
Expand to learn more about Payroll Items
Expand to learn more about Payroll Items
Within QuickBooks, navigate to Payroll,Employees and click Edit payroll items.
Select New Payroll Item, then create your new Pay type.
Next, select an employee.
Click Start/Edit next to Pay Types
Assign a Pay Rate for the default hourly rate and/or any custom Payroll Items (Pay Types) created.
Payroll Item(s) will need to be assigned to each time entry on the Weekly Timesheet.
Since Buildertrend does not map to the Payroll Item, the Pay Item field will be left blank and assume the default hourly rate for the employee.
In cases where multiple Payroll Items need to be accounted for, such as overtime, the Weekly Timesheet must be manually edited.
US Taxes
Within QuickBooks, you can set up Automatic Sales Taxes. You will have the ability to set your tax rates up by either Location (based on the customer's shipping address) or you can create Custom sales tax rates. To use the integration, ensure that tax tracking is enabled in both QuickBooks and Buildertrend.
QuickBooks Setup:
Navigate to Taxes > Sales Tax, click Use Automated Sales Tax and walk through the steps to set up your tax agency (state/city/country) and filing frequency.
*Note: There is an embedded YouTube video with instructions to assist you.
Buildertrend Setup:
Navigate to Company Settings > %Taxes and click Enable Tax.
*Note: Do not add taxes here because they will be imported from QuickBooks.
Location Based Sales Tax Rates
QuickBooks Online uses location-based sales tax to automatically calculate the correct rate based on where the sale occurs. It pulls in the appropriate state, county, and city tax rates based on the shipping or business location, helping ensure tax compliance across jurisdictions.
Click here for more information on Location Based Sales Tax Rates
Click here for more information on Location Based Sales Tax Rates
Import your tax rate from QuickBooks:
To import a specific tax rate from QuickBooks, ensure the Zip Code for a job in Buildertrend matches the customer shipping address in QuickBooks!
In Buildertrend, from the job who's tax rate you'd like to import, navigate to the Job Details > Options tab, and set your Default Tax Rate to Import rate from Accounting.
*Note: If you linked the job to a QuickBooks Customer / Customer:Job prior to setting this Default Tax Rate, you will need to push an update to QuickBooks.
From the Job Details > Accounting tab, select Update Job in QuickBooks.
Moving forward, the Tax Rate you have just imported will be available in the Default Tax Rate dropdown for future jobs.
Once your Default Tax Rate is set, the taxable rate will default on your invoices and be calculated appropriately.
How Tax Rates integrate with Buildertrend and QuickBooks
Create an Invoice in Buildertrend and push the Invoice to QuickBooks.
For more information on creating an Invoice in Buildertrend, review this article!
For more information on pushing an Invoice to QuickBooks, review this article!
When the invoice is sent to QuickBooks, taxes will be assigned to the appropriate agency liability report.
What if my Tax Rates vary based on Products and Services?
If your rates vary based on products or services provided, then QuickBooks will allow you to set up variable rates.
If this is how your taxes are set up:
The invoice will need to be sent to QuickBooks with the default tax rate.
Then the invoice can be opened for editing which will allow QuickBooks to update the tax on each Product/Service code.
Once you edit the Invoice, after your next sync with Buildertrend, your Invoice within Buildertrend will updated to match and the tax adjustment will be noted.
Custom Sales Tax Rates
QuickBooks Online allows you to create your own sales tax rates for situations where automatic rates do not apply. These custom rates can be used for specific regions, districts, or tax scenarios that require manual setup.
Click here for more information on Custom Sales Tax Rates
Click here for more information on Custom Sales Tax Rates
Set up your custom Tax Rate
Within QuickBooks, navigate to Taxes > Sales Tax > Sales Tax Settings.
Click Add Rate and add the name, agency, and rate.
International Taxes
Within QuickBooks, you can set up Sales Taxes. You will have the ability to set your tax rates up by Country or Province requirements. In addition to setting up your tax rates by Country or Province, you can create group tax rates to allow you to use the same tax code for both sales and purchases.
Sales Taxes
Sales taxes are the taxes you collect from customers when you sell goods or services. Setting up sales taxes correctly by country or province ensures your invoices reflect the right rates and helps you stay compliant with local tax laws.
Click here for more information on setting up Sales Taxes
Click here for more information on setting up Sales Taxes
The following steps will ensure that Buildertrend and QuickBooks are configured correctly to ensure that taxes are tracked correctly on the appropriate liability account.
To use the taxes on Buildertrend Invoices and have them pushed to QuickBooks Online properly, the following settings are necessary:
Sales tax rates are applied to each product/service code. Note: This rate may be exempt or out of scope but cannot be left blank.
A tax option of Inclusive or Exclusive is chosen in the Buildertrend Accounting Settings.
From QuickBooks, add tax rates to the product/service codes by navigating to Gear Wheel > Products and Services, and then click Edit on the code.
Choose the appropriate Sales tax rate (this may be Exempt) and click Save and Close.
Note: Even if you plan to configure Buildertrend to push invoice as inclusive, DO NOT check the Inclusive of sales tax box.
From Buildertrend, navigate to Company Settings > Accounting to set your default QuickBooks Invoice options.
Inclusive: If you use this option, you will need to include the tax in each cost line. When the invoice is sent to QuickBooks, the tax will be deducted from the total and applied to the liability account.
Example of Inclusive:
This example shows a 5% GST being used. The QuickBooks invoice shows that the $50 was deducted and then applied towards GST.
Exclusive: When this option is chosen, QuickBooks adds tax to the invoice. Therefore, you have two options on how to handle the Buildertrend invoice.
Option 1:
This is the recommended option.
Create a cost code and a product/service code for the tax rate. Note: This product/service code must have a sales tax rate of exempt.
Add a cost line at the bottom of the invoice, using the cost code, for the value of the tax. Tip: Use the cost line to compute the tax value.
Example of this option:
This example shows the GST manually added to the Buildertrend invoice, ensuring the invoice is the correct amount for payments.
However, since QuickBooks is adding tax, the cost line needs to be deleted from the QuickBooks invoice.
Option 2:
This option is not recommended because the emailed
invoice will not show the tax.
Use the configuration setting Show owner tax amount from QuickBooks on Owner Invoices. This option should only be used if your clients have client portal access.
Example of this option:
This example shows the invoice in Buildertrend and the taxes being applied once pushed to QuickBooks.
Once the taxes are applied in QuickBooks, the taxes will show on the invoice from the client portal but NOT on the Buildertrend generated email.
Purchase Taxes
Purchase taxes are the taxes you pay when buying products or services from suppliers. Properly tracking these taxes allows you to accurately record your expenses and take advantage of any eligible credits or deductions.
Click here for more information on setting up Purchase Taxes
Click here for more information on setting up Purchase Taxes
To use the taxes on Buildertrend Bills and have them pushed to QuickBooks Online properly, the following settings are necessary:
Purchase tax rates are applied to each product/service code. Note: This rate may be exempt or out of scope but cannot be left blank.
A tax option of Inclusive or Exclusive is chosen in the Buildertrend Accounting Settings.
From QuickBooks, add tax rates to the product/service codes by navigating to Gear Wheel > Products and Services, and then click Edit on the code.
Choose the appropriate Purchase tax rate (this may be Exempt) and click Save and Close.
Note: Even if you plan to configure Buildertrend to push bills as inclusive, DO NOT check the Inclusive of purchase tax box.
From Buildertrend, navigate to Company Settings > Accounting to set your default QuickBooks Invoice options.
Tax inclusive: Use this option if you want to include taxes in your Buildertrend budget as cost of goods sold. The full bill will be entered into Buildertrend and QuickBooks will deduct the tax and apply it to the liability report.
Example of Tax inclusive:
In this example, the 5% GST is included on the bill and displayed on the budget as cost of goods sold. Then it is sent to QuickBooks, and the GST is deducted and applied to the liability report.
Budget View:
Tax exclusive: Use this option if you do not wish to track taxes on your budget as cost of goods sold. The Buildertrend bill will not include tax, and QuickBooks will add it and apply it to the appropriate liability report.
Example of Tax exclusive:
In this example the bill will be created without tax, a 5% GST will be added in QuickBooks, and the Buildertrend budget will only reflect the cost of goods sold.
Budget View:
Tracking PST as Cost of Goods Sold
In some regions, Provincial Sales Tax (PST) can be tracked as part of your Cost of Goods Sold. Doing so helps you better understand your product costs and profit margins while ensuring your tax reporting aligns with local regulations.
Click here for more information on tracking PST as Cost of Goods Sold
Click here for more information on tracking PST as Cost of Goods Sold
PST paid on materials is tracked as cost of goods sold and therefore should be recorded on the Buildertrend budget. To make this possible, PST will need to be included in the cost of the materials and a special GST rate set up to ensure that it is charged correctly.
For Provinces that need to collect 5% GST on the product, while calculating on a cost that is the product plus a 7% PST:
You will need to set up a custom GST purchase tax rate of 4.6729%.
For Provinces that need to collect 5% GST on the product, while calculating on a cost that is the product plus a 6% PST:
You will need to set up a custom GST purchase tax rate of 4.717%.
From QuickBooks, navigate to Sales Tax > Manage Sales Tax.
Click +Add Custom Rate under the Canada Revenue Agency.
Create your custom rate by:
Entering a name for the Tax Rate.
Checking I pay this on Purchases.
Enter the rate of 4.6729%.
This rate of 4.6729% is an adjusted number allowing you to apply a 5% GST to all items that include PST WITHOUT applying the 5% GST to your PST (aka we are making sure we don't tax the PST tax).
Choose Input Tax Credits (ITCs) under Show tax amount on return line.
Click Add to save your new custom rate.
Note: Check with your accountant to ensure that your GST should be set up as a Input Tax Credits.
Add the new purchase tax to all product/service codes that will be charged PST by navigating to the Gear Wheel > Products and Services, and then click Edit on the code.
Adjust the Purchase Tax Rate to the newly created custom rate.
Note: Do NOT check the Inclusive of Purchase Tax box.
From Buildertrend, navigate to Company Settings > Accounting to set your default QuickBooks Bill option to Exclusive.
Example of a Bill utilizing PST as Cost of Good Sold tracking:
In this example I have a receipt with a mixture of cost items that do and do not include PST.
*Note: This is a real customer receipt and has been redacted to protect the customer.
Receipt Breakdown:
Total Due: $87.36 (material + PST + GST) + $89.25 (labor + GST) = $176.61
1 Yard Bedding Sand - This is a material cost that includes PST
$78.00 (material total) x 7% (PST) = $5.46
$83.46 (material + PST) x 4.6729% (adjusted 5% GST) = $3.90
$78.00 (material) + $5.46 (PST) + $3.90 (GST) = $87.36
Agg & Mulch Delivery - This is a labor cost that does NOT include PST
$85.00 (material total) x 5% (GST) = $4.25
$85.00 (material) + $4.25 (GST) = $89.25
When creating a bill in Buildertrend that needs to account for PST for some costs and GST for all costs, you have two options.
In the example provided for each option below, we will be recreating the example bill above using 2 cost codes (product & service codes):
7010 - Landscaping
In QuickBooks, this product and service will have your Purchase tax set to the custom tax rate as PST will be applied to this when purchased.
7410 - Pickup/Delivery
In QuickBooks, this product and service will have your Purchase tax set to your general GST tax rate as PST will NOT be applied to this when purchased.
Option 1:
Put the PST on its own cost line but use the same cost code for the PST cost line that you used for the material cost that requires PST to be applied. This will eliminate any potential math errors.
Option 2:
Include the PST total in the cost line with the product that
requires PST to be applied.
Interested in Learning More? 📚
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If you have any questions or require additional support, feel free to chat with us, send an email: support@buildertrend.com, or give us a call at 1-888-415-7149. We’re always happy to help.