Case Study of Resolving Discrepancies Between Buildertrend and QuickBooks Online

The Challenge: Large Discrepancies in Profit Margin Reporting

A client who was using both Buildertrend for project management and QuickBooks Online (QBO) for accounting was concerned about inconsistencies between the two systems. Specifically, the Profit Margin reported in Buildertrend appeared to be much larger than what the client expected. This discrepancy created confusion and led the client to question the accuracy of their financial reporting.

The Solution: Conducting an Audit and Implementing Internal Controls

To address the issue, I conducted a comprehensive audit of both Buildertrend and QBO to identify the root cause of the discrepancies. Here’s what I found and how I resolved it:

Audit of Buildertrend and QBO: During the audit, I discovered that the large discrepancies were due to improper coding of transactions by the office assistant in QBO. These errors prevented Buildertrend from correctly syncing with QBO, leading to an inflated Profit Margin in Buildertrend.
Identifying the Coding Errors: The audit revealed that many expenses and bills were not being coded correctly in QBO, which meant they were not visible in Buildertrend. As a result, the costs were not being accounted for properly in the Profit Margin calculations within Buildertrend.
Implementing Internal Controls: To prevent this issue from recurring, I implemented strict internal controls regarding how bills and expenses were entered into QBO. This included setting up guidelines for proper coding, conducting regular reviews of data entry, and providing training to the office assistant to ensure they understood the importance of accurate data entry.
Monitoring and Ongoing Support: After implementing the controls, I continued to monitor the data synchronization between Buildertrend and QBO to ensure that the Profit Margin reflected in Buildertrend was accurate. I also provided ongoing support to the client to help them maintain these internal controls.

The Outcome: Accurate Profit Margin Reporting and Improved Financial Control

As a result of the audit and the new internal controls, the client’s Profit Margin in Buildertrend now accurately reflects their true financial situation. The discrepancies between Buildertrend and QBO have been resolved, providing the client with a clear and accurate understanding of their profitability. This not only improved their financial reporting but also restored their confidence in the systems they were using.

The Takeaway: The Importance of Accurate Data Entry and Internal Controls

This case highlights the critical role that accurate data entry and strong internal controls play in maintaining reliable financial reports. By identifying and correcting the coding errors, I was able to help the client ensure that their financial data was accurate across all platforms, leading to better business decisions and financial management.

Final Thought: Ensuring Accuracy in Financial Reporting

My mission is to help businesses maintain accurate and reliable financial records through careful audits, effective internal controls, and ongoing support. If you’re facing similar challenges with discrepancies in your financial systems, I’m here to help you achieve clarity and confidence in your financial reporting.