Implementing QuickBooks Online for Job Costing and Project Management

As a business expands, efficient financial management becomes more critical to the success of the business. Let’s look at a case study that explores how a construction company called “BuildSmart Construction,” a mid-sized construction company, successfully implemented QuickBooks Online to enhance job costing and project management, which ultimately boosted their profitability and operational efficiency.

Background

BuildSmart Construction specializes in residential and commercial projects. As the company grew, managing project costs and profitability became challenging due to the limitations of their existing accounting system.

The company used a manual process to track labor, materials, and overhead costs, which led to errors and inefficiencies. Real-time insights into their project profitability became impossible with the manual system which in turn affected their strategic decision-making. While their manual system may have been sufficient when they were a smaller company and were juggling fewer projects at one time, this system could not support the growing number of projects and clients they were now experiencing. Something had to be done.

Implementation of QuickBooks Online

The management team at BuildSmart Construction decided to transition to QuickBooks Online to address these challenges. They were attracted by its cloud-based capabilities, real-time reporting, and robust job costing features.

Training was the first step of the “Onboarding Process.” Employees were able to participate in training sessions to learn how to navigate the platform and utilize the features of QuickBooks Online effectively.

While the employees were training, the migration of the current financial data into QuickBooks Online began. Being able to take advantage of Intuit’s data migration support helped to make the transition much smoother.

Key Features Utilized

Comprehensive Job Costing:
QuickBooks Online enabled BuildSmart Construction to allocate expenses to specific jobs, providing a clear picture of each project's profitability.

BuildSmart Construction had a commercial office renovation, and the finance team was able to track labor, materials, and subcontractor costs against the project's budget. This detailed tracking allowed them to identify cost overruns early and adjust accordingly.

With QuickBooks Online, the company gained access to real-time project reports, offering insights into costs, revenue, and profitability.

Monthly project reviews became more efficient, allowing the management team to make informed decisions quickly. They used the Project Profitability report to identify underperforming projects and implement corrective measures.

BuildSmart Construction took advantage of QuickBooks Time, a great feature of QuickBooks Online that automates time tracking for labor costs, reducing manual entry errors and improving accuracy. Field workers logged their hours directly into QuickBooks Time, which synced with QuickBooks Online. This integration provided an accurate picture of labor costs for each project, helping the company stay within budget.

Outcomes and Benefits

The automation of job costing processes led to significant time savings, allowing staff to focus on strategic initiatives rather than administrative tasks. Access to comprehensive, real-time reports enabled the leadership team to make data-driven decisions, supporting the company's growth objectives.

QuickBooks Online's scalability ensured that BuildSmart Construction could continue to expand without worrying about outgrowing its accounting software.

By accurately tracking costs and identifying profitable projects, the company was able to improve its overall profitability and allocate resources more effectively.

The implementation of QuickBooks Online transformed BuildSmart Construction's financial management, providing the tools necessary to support its growth and enhance operational efficiency. By leveraging the platform's job costing and project management features, the company was able to streamline processes, improve decision-making, and focus on delivering high-quality projects. For growing businesses like BuildSmart Construction, QuickBooks Online offers a flexible and powerful solution to meet evolving financial needs.