Build smarter with project cost management software: Expert financial advice for home builders

In today’s market, most builders aren’t struggling to find work – they’re struggling to track it. Without real-time visibility into job costs, even small mistakes can spiral into major budget problems.

That’s why we turned to the experts. Chris Anderson, CPA, and Peter Olejniczak, CCIFP – construction-focused accountants at Monthend – work with builders every day to help them get a tighter grip on their numbers.

We asked them one big question: How can builders improve project profitability using project cost management software?

Their answers? Surprisingly simple – and extremely effective.

Let’s break it down.

Q&A: Expert insights on job costing ROI

What’s the biggest mistake builders make when tracking project costs?

Chris: Most builders don’t track cost and revenue variances – the unexpected differences between their budget and reality. When projects go over budget, they’re left asking, “Where did the money go?” But if you consistently track variances, you’ll see the answer clearly – and learn how to fix it moving forward.

Peter: Even builders who think they’re doing a great job at job costing often miss the mark. We recently audited a builder who was confident in their numbers, but 22% of costs never made it into their reports. The root cause? Missing receipts, untracked credit card charges and incorrect cost codes.

The fix: Builders need a process to track every cost – accurately and in real time. Integrated project cost management software like Buildertrend helps by centralizing your budget, tracking your actuals and flagging inconsistencies as they happen.

What’s one small habit that leads to better job cost visibility and higher profits?

Chris: Implement purchase orders. They’re more than a financial tool – they’re a way to hold vendors and subs accountable, prevent cost creep and communicate clearly about scope.

Peter: Schedule a recurring budget review. It doesn’t have to be long, but make it a habit. Set time aside each week to compare estimated vs. actual costs and investigate the “why” behind overruns.

What key indicators should builders look at when comparing estimated vs. actual costs?

Chris: Always ask why. Why did the numbers shift? Was it an estimating error, vendor mistake, scope creep or something else? Use that insight to fix the root problem, not just the symptoms.

Peter: Also look at your committed costs. This will help you understand future liabilities or areas of cost variability. Keeping an eye on them helps prevent surprises.

What’s the best way to use project cost management software like Buildertrend day-to-day?

Chris: Use it to create budgets and track cost variances. That’s how you get a true picture of profitability without endless spreadsheet work.

Peter: Snap a photo of every receipt using the Buildertrend mobile app. It sounds simple, but it closes the biggest gap in job costing – missed expenses. When your data is complete, you can trust the numbers.

And the ROI?

Peter: The biggest financial benefit of using integrated software like Buildertrend over spreadsheets or QuickBooks is streamlined job costing and real-time financial visibility. This way builders can make proactive decisions that improve profitability.

Chris: Tracking cost and revenue variances gives builders clear answers when profits fall short on a project. With project cost management software, they get a clear picture of job financials – with the least amount of effort.

What’s the ROI of project cost management software?

At the end of the day, better job costing leads to better business decisions – and Buildertrend’s job costing software makes that easier than ever. With Buildertrend, you gain real-time visibility into every dollar spent, helping you know exactly where your money’s going and spotting where it might be slipping through the cracks.

Buildertrend’s integrated budgeting and purchasing tools allow you to build smarter, more accurate budgets based on actual project performance, not guesswork. As costs roll in, Buildertrend flags variances so you can act fast before small overruns turn into big budget headaches.

Most importantly, make confident financial decisions while projects are still underway instead of waiting until the end of a job to see how profitable it is. You’ll get clear insight at every stage.

Real-time job costing both protects your margins and helps them grow.

Want to see how project cost management software can improve your bottom line? Try Buildertrend today.