Mastering Buildertrend Integration with QuickBooks Online (QBO) and Managing Unexpected Bank Charges: A Step-by-Step Approach
Buildertrend is a widely used project management software tailored for the construction industry, offering tools for scheduling, budgeting, and client management. One of its most attractive features is the Buildertrend Integration with QuickBooks Online (QBO), which helps streamline the financial aspects of construction projects by syncing costs, invoices, and payments between the two platforms. However, like with any software integration, users often encounter challenges that require fine-tuning or troubleshooting.
One common issue that some users face is related to the treatment of bank charges on paid invoices. When syncing transactions, Buildertrend enters a journal entry (JE) for the bank charge, but this can lead to discrepancies during the reconciliation process in QBO. Specifically, users often find themselves making manual adjustments to account for the bank charge, resulting in duplicate entries on the books—one from the Buildertrend integration and another from their manual adjustment. This duplication makes reconciliation cumbersome and, in some cases, distorts the accuracy of the financial records.
This article explores this issue in detail, explaining how Buildertrend and QBO integration works, why this issue with bank charges arises, and what potential solutions you can implement to simplify the reconciliation process while avoiding double entries. By the end, you’ll have a clearer understanding of how to better manage this aspect of the integration, thus maintaining cleaner, more accurate books.
Buildertrend Integration with QuickBooks Online: How It Works
Before diving into the specific issue, it’s helpful to understand the overall process of how Buildertrend integrates with QuickBooks Online. Buildertrend allows users to send invoices, payments, and expenses to QBO, making financial management easier by syncing records between the two platforms. The integration ensures that project-related financial transactions in Buildertrend are reflected in QBO, reducing the need for manual data entry.
However, this synchronization isn’t always seamless. Buildertrend processes certain transactions in a specific way, which may differ from how QBO records them natively, especially when it comes to fees and bank charges.
Common Issue: Duplicate Bank Charges in QBO
The problem many users encounter arises when Buildertrend records a paid invoice with an associated bank charge. For example, when a customer makes a payment, especially via credit card or ACH (Automated Clearing House), Buildertrend logs a journal entry (JE) to account for the bank fees charged on that transaction. This is a helpful feature to ensure that the bank charges are accounted for and reflected in your overall expenses.
However, when you reconcile that payment to the deposit in QuickBooks Online, you may need to make a manual adjustment in QBO to account for the bank charge, ensuring that the deposit amount matches the actual amount received in the bank. The challenge arises because now you have two bank charge entries hitting your books:
The journal entry from Buildertrend — Buildertrend automatically records the bank charge in QBO.
The manual adjustment during reconciliation — You also manually adjust the bank charge to balance the deposit, resulting in a second charge.
This creates duplicate entries for the same bank charge, which can inflate your expenses and distort your financial reports.
Why Does This Happen?
The core reason for this duplication is that Buildertrend is automatically creating a journal entry to account for the bank charge, and you’re manually entering an adjustment for the same charge during reconciliation in QBO. Essentially, both Buildertrend and you (or your accountant) are recording the same transaction, unaware that the other has already accounted for it.
This can be particularly frustrating during reconciliation, as the double entry causes discrepancies between the bank statement and the records in QBO. As a result, your bank account won’t balance properly until you identify and remove one of the duplicate entries, leading to additional work and confusion.
Potential Solutions to Address the Double Entry Issue
To address this problem, you need to adjust the workflow between Buildertrend and QBO so that the bank charges are recorded only once—either automatically through Buildertrend or manually during reconciliation, but not both. Here are several potential approaches you can take:
A. Adjust Buildertrend Settings for Payments
Start by reviewing your Buildertrend integration settings. It may be possible to prevent Buildertrend from creating the journal entry for the bank charge. Some users have reported success by adjusting how Buildertrend records transactions in QBO.
Disable Bank Charges in Buildertrend (if possible): Check Buildertrend’s settings to see if there’s an option to disable the automatic creation of journal entries for bank charges. If you can turn off this feature, you’ll then be able to manually enter the bank charges in QBO during the reconciliation process without worrying about duplicate entries.
Sync Payments without Fees: Another approach is to have Buildertrend sync the payment without automatically including the bank charge. This way, the total payment syncs, and you can manually adjust for the bank charge when reconciling the deposit in QBO.
B. Modify the Reconciliation Process in QBO
If you prefer to keep Buildertrend’s automatic journal entry for bank charges, you may need to change how you reconcile payments in QBO.
Reconcile Without Adding a Bank Charge Adjustment: Instead of manually adjusting for the bank charge during reconciliation, match the deposit to the amount after deducting the bank charge that Buildertrend has already accounted for. This requires carefully matching the deposit amount to the net payment, factoring in the bank charge recorded by Buildertrend.
Use QBO Bank Rules: QuickBooks Online has a feature called “Bank Rules” that can help automate certain entries during reconciliation. You can create a bank rule that recognizes and categorizes bank charges, making the reconciliation process smoother and reducing the need for manual adjustments. However, this would need to be carefully coordinated with the entries from Buildertrend to avoid duplicates.
C. Manual Journal Entry Review and Adjustment
If the automatic journal entry from Buildertrend is necessary for your workflow, one option is to regularly review and adjust the journal entries for bank charges.
Review Buildertrend Journal Entries: After syncing, manually review the journal entries created by Buildertrend and ensure that there’s no duplication with your QBO entries. This can be time-consuming, but it ensures accuracy.
Delete Duplicate Entries: If you notice that both a Buildertrend entry and a manual adjustment exist for the same bank charge, you can delete one of them (typically the manual entry) to avoid duplication.
Best Practices for Avoiding Duplicate Entries in the Future
To minimize the chances of encountering this issue in the future, consider the following best practices:
A. Communication Between Teams
Ensure that everyone involved in your financial processes—whether it’s your bookkeeper, accountant, or project manager—understands how Buildertrend and QBO are syncing transactions. Clear communication about how payments, fees, and charges should be handled can prevent manual errors or redundant entries.
B. Regular Reconciliation Checks
Make it a habit to reconcile your accounts on a regular basis, rather than waiting for month-end. Frequent reconciliations can help catch issues like duplicate entries early, making them easier to resolve before they become larger problems.
C. Use a Test Payment
If you’re unsure how changes to Buildertrend or QBO settings will impact your workflow, consider running a test payment. This will allow you to see how bank charges are handled without disrupting your actual financial records. You can then adjust your process based on the test results.
Takeaways: Finding the Right Workflow for Your Business
Dealing with duplicate bank charges in QuickBooks Online from Buildertrend integration can be frustrating, but with the right approach, it’s a problem that can be managed. Whether by adjusting settings in Buildertrend, changing your reconciliation process in QBO, or reviewing journal entries more closely, you can develop a workflow that reduces duplication and keeps your books accurate.
By taking proactive steps to streamline your process, you’ll save time during reconciliation, reduce errors, and ensure that your financial records remain clean and balanced. The goal is to find a solution that fits your specific needs, so don’t hesitate to explore different methods until you find the one that works best for your business.
One common issue that some users face is related to the treatment of bank charges on paid invoices. When syncing transactions, Buildertrend enters a journal entry (JE) for the bank charge, but this can lead to discrepancies during the reconciliation process in QBO. Specifically, users often find themselves making manual adjustments to account for the bank charge, resulting in duplicate entries on the books—one from the Buildertrend integration and another from their manual adjustment. This duplication makes reconciliation cumbersome and, in some cases, distorts the accuracy of the financial records.
