How reporting with Buildertrend promotes financial success

On this episode of “The Better Way: A podcast by Buildertrend,” Reece and Zach are chatting about some important information related to financial reporting within Buildertrend. They’ll talk about how Buildertrend reporting can be maximized around these key areas: Budget, Job Groupings, Jobs Lists, Grid Settings, Filtering and Variance Codes.

Listen to the full episode to learn more about how reporting in Buildertrend allows you to quickly pull job costs and detailed budgets to help make financial decisions.

WHAT IS REPORTING IN BUILDERTREND USED FOR?

Buildertrend reporting is different than QuickBooks reporting. Using Buildertrend for reporting allows you to quickly pull up job costs or detailed budgets and can be maximized around these key areas:

  • Budget
  • Job groupings
  • Jobs list
  • Grid settings
  • Filtering
  • Variance codes

WHAT ARE THE STEPS TO TAKE IN ORDER TO USE BUILDERTREND REPORTING?

  • Learn how the Budget feature works
  • Set up job groupings and apply them to each job
  • Set up grid settings and filters within PO Payments
  • Create reports to help make financial decisions
  • Show team members how use reporting features

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Reece Barnes and Zach Wojtowicz | Buildertrend

Intro:

Welcome to “The Better Way,” a podcast by Buildertrend. We are here to help you simplify and establish processes that will make meaningful changes to your company and help you achieve your goals. There’s a better way to run your construction business, the Buildertrend way. Tune in this season as our consultants, Reece Barnes and Zack Wojtowicz will help you master your financials.

In this episode, we’re discussing financial reporting. Learn more how to outline what data can be reported on and how to start implementing reporting within Buildertrend.

Reece Barnes:

Hello everybody and thank you for joining us for our final episode of Buildertrend’s financial series. Again, my name is Reece Barnes, I’m an additional training consultant here at Buildertrend, and I’m joined with my co-host Zack Wojtowicz. Zack, how’s it going?

Zack Wojtowicz:

Good, Reece. Last one today, huh?

Reece Barnes:

Yep. Hopefully they extend our contract. We get some more products, maybe like a project management series, a sales series.

Zack Wojtowicz:

Get some syndication.

Reece Barnes:

Yeah, absolutely.

Zack Wojtowicz:

Get some royalties. That’d be great.

Reece Barnes:

Yeah, that would be good. We’ll keep building on it.

Zack Wojtowicz:

Speaking of maximizing your profits, how to get syndicated.

Reece Barnes:

That was good.

Zack Wojtowicz:

Yeah. What are we talking about today?

Reece Barnes:

We are talking about how to outline what data can be reported on in Buildertrend. I guess I jumped over that completely. This is going to be emphasized as final series or this episode, rather, is going to be on reporting. We’re going to talk about the data that you actually can report on in Buildertrend as well as discussing how to start implementing reporting within Buildertrend. There’s going to be a lot of good pieces here on a lot of my sales calls, especially. People are very curious and interested in obviously reporting on the data that they’re putting in Buildertrend. So, as far as that, Zack, where are we starting and where do you want to start actually directing the listeners?

Zack Wojtowicz:

Whenever we use the word report, we have to kind of take a step back and think about what are reports and what are we using them for? At the end of the day, it’s a way to aggregate information, data, to make important decisions about what happened with this job and where are we moving forward. Now, when we’re talking about reporting in QuickBooks, there is a slight difference. The most common report we’re going to see people using is what’s called the profit and loss report.

Reece Barnes:

The P&L.

Zack Wojtowicz:

Yeah. Reece, if you were going back to that budget example, way back in episode one …

Reece Barnes:

Burritos.

Zack Wojtowicz:

Yes. Right. If you were making that report for the month and you were trying to track how much money you made at the end of the job or the month for you in that case, excuse me, you could see the bottom line of what was your takeaway, what did I spend or did I make, and that’s my ultimate gross income in that particular project or budget. And that’s what the P&L report is very commonly used for. It’s just a way for a company to get a quick snapshop with all their considerations.

The balance sheet is kind of like your company health. And so, Buildertrend is not trying to take those reports out of the way you do things. And I think that’s really important. What you are gaining out of the Buildertrend side is going to be a little bit different. It’s going to be missing some important information like your payroll, if you’re using a third-party service to track that and it goes into your QuickBooks. Those types of things are going to be bigger picture, large scale, this is what is happening for my company. So, what are you getting out of Buildertrend? Yeah, go ahead.

Reece Barnes:

I was just going to say, you might touch on this, it might be a little early, but the big thing is really understanding what reporting and information you’re wanting to take from Buildertrend and what information or reporting you’re wanting to take from QuickBooks. Because we hear a lot of people that we touched on even on the QuickBooks integration episode, some people definitely talk about QuickBooks Desktop having better reporting than QuickBooks Online, when in reality, that is just simply not the case. The reality is you have to be looking in the right place for that reporting. So, really understanding why you’re looking for what you’re looking for and where you’re going to find it is a big piece of this.

Zack Wojtowicz:

And who is going to use those reports? The typical person who’s pulling the P&L is going to be the people at the very top of the company. They might share that with their project managers, but there’s information at Buildertrend that can be used by other people to help inform decisions. It’s just a way to supplement kind of what you’re looking at. And it can be a little tough to demonstrate some of these things without looking at the program. So, if you’re listening right now, highly recommend that you think about what we’re saying and take some action on it to follow up with the channels that we offer. Set up a phone call with your onboarding specialists, reach out to support and ask some questions. But I really wanted to outline …

Reece Barnes:

Reach out to me.

Zack Wojtowicz:

Yeah, reach out to Reece Barnes …

Reece Barnes:

For financial consulting.

Zack Wojtowicz:

And we can talk about some financial consulting and get some one-on-one time with somebody who kind of does this day in and day out. And there is really key areas that I wanted to highlight as far as, these are the things that you should be thinking about when you’re trying to report. Now, in Buildertrend, we have that reports tab. And that has a lot of great things in it, but it also has things that aren’t necessarily what I’m talking about today. These are kind of your Buildertrend 301 type reports that kind of are hidden in plain sight. They’re all up at the front, but you have to learn some of the advanced ways to do it.

Reece Barnes:

I think that’s definitely important to note on is we get a lot of clients that they’re used to a program or a software that’s going to be, I hit a button that says report, and it sends it out. In reality, it’s more important to look at, what information am I trying to get, and then what method am I getting it? We’re going to touch on the different ways that you can actually find and build reporting into Buildertrend that’s not going to be under the reports tab, but like Zack had already alluded to, where am I finding this information? Where is it heading? And actually, what am I trying to extract from it?

Zack Wojtowicz:

We’ll even give you some action items here of kind of where would I start? If I were starting my company tomorrow, and I was trying to maximize my infrastructure of how Buildertrend is working, this is where I would go to make sure things would run smoothly from here on out. And that’s the other thing, these things I’m talking about, or we’ll talk about are easily set up. You’ll be able to reuse them again and again, but you kind of have to find your way into it at some point in order to start unlocking what’s really there.

So, budget is the first one. Now, in Buildertrend, there is a budget tab. And it’s pretty easy to get confused because you might think how you run your budget is how the system would actually run its budget, and that isn’t necessarily the case. So you want to keep in mind that budget in Buildertrend is exclusively for internal budgeting. A lot of people want to use that budget for their customer. And I understand why they want to do that, cost plus builder, be transparent. But it leads to miscommunication confusion. Builder costs is what is always going to be in that budget when you’re looking at it, Reece. And then compared to your expenses with your subcontractors and other bills that you’re paying out to different vendors as the project is progressing.

So, that budget tab is the most commonly looked at page for people that are using the financials. But a lot of people don’t actually take the time to sit and read kind of how is it going?

Reece Barnes:

What’s going on.

Zack Wojtowicz:

Exactly. At the bottom right hand corner, it gives you a nice little summary table that says job running total. That means your total contract plus change orders plus any adjustments. The final number that your customer is going to pay.

Reece Barnes:

Price per square foot.

Zack Wojtowicz:

Right. If you filled out your square footage, you have to take the time to fill out that field. There’s something to be said about doing things the right way, but when you set up a job, if you just don’t leave it, or if you don’t fill out that square footage, how’s the program going to know what the cost per square foot is? It can’t. You have to put on the square footages in it and what the contract price is. But you’re right. If you do fill out that square footage option when you were creating the job, then it will have that calculation for you. It also has total costs. And total costs means all expenses that you filled out to that point. That’s the misleading thing about that summary table at the bottom of the budget, is it’s only really accurate at the end of the job, because it’s starting with a total and it’s sub-tracking your expenses. So, it’s going to whittle your gross profit down as you go.

So, at the start of the job, you haven’t entered any expenses yet, and you’re like, look at my gross profit. And that’s kind of the danger of sharing it with the customers a little too earlier, or right from the beginning, because they’re going to look at that and be like, whoa, you’re making 100% margin on my project.

Reece Barnes:

Yeah, we are. This is a great job for us.

Zack Wojtowicz:

And the vast majority of people don’t, they don’t show the budget. But for those of you listening, you have to understand, it’s not for the customer, it’s for you. But at the end of the day, that budget is a report. And there’s some cool things you can do with it that kind of loops into my second point, which is known as job grouping.

Reece Barnes:

I love this feature. I don’t know near enough about it. I think from what I do know, it makes a ton of sense. So, what do you have?

Zack Wojtowicz:

It goes back to what I said about filling out the square footage. Job grouping is easily missed, not a required field, and often ignored as far as what it’s there for. When you’re setting up a job in Buildertrend, you know you have to enter the job name and then you have to fill out the job type. And this always confuses people because they’re like, oh, well, this doesn’t fit exactly my project type. That’s just for Buildertrend’s internal reporting purposes so that we can run data reports on the types of projects that our builders are doing so we can cater features based off the volume of remodels, new construction, it’s a little in the weeds. Job groups are totally customizable and they’re one spot below job type.

The power in job grouping is I can say, all right, I do additions and I do kitchen remodels. When I’m looking at a budget for a job, I can say my job lists include just this particular job group, just my kitchen remodels. And then I can click all listed jobs and look at the budgets across all the different job types. So now, I’m getting big picture. How profitable was I on kitchens last year? How profitable was I on additions if I’m a new home construction company? You might have plans. Well, a great way to have job groups are what is the plan type or the plan layout, the Lavender and the Hamilton.

Reece Barnes:

The mahogany.

Zack Wojtowicz:

Yes. Yeah. Some creative names. Do people get degrees on naming plans.

Reece Barnes:

Like Stonebrook. Stonebrook.

Zack Wojtowicz:

That is how you can kind of again, unlock the potential by taking a little extra time to think about, okay, what job groups do I want. Then when I’m filling out my job, making sure I tag that job with the job group, and then learning how to filter my jobs list in order to display that job group. So, that sounds like a lot. It kind of seems like a big ask, but it’s not. This is stuff that people look at every day. They just don’t realize it that they’re looking at it. It’s literally in the same dropdown and it’s on the jobs list. And it just gives you so much more control over how that information is going to be displayed.

And what’s cool is it doesn’t just apply to the budget. So, maybe I want to see all my expenses from the bills and POs tab across all my jobs. And I want to narrow that down to maybe a specific vendor that I purchased a lot of supplies from. If I want to look at all the POs for Bill’s Lumberyard, I can click all listed jobs, Bill’s POs, and then everything will pull up, and it’ll even give me a total of how much I’ve paid versus how I’ve contracted with him. That is really understanding the big picture of the program and why you’re putting information in it, because ultimately, you’re going to be able to find things within the account using those filters and those grid settings and the way that you kind of unlock everything as you get comfortable with these things that we’re talking about.

Reece Barnes:

For sure. A couple of examples come to mind, but that is the important piece of understanding, this isn’t going to be a button that we click and Buildertrend automatically knows what you want to report on. There’s going to be some legwork in the front end. But for the people that are adamant about having the most accurate reporting they can, it’s going to require some upfront work. It’s going to require some upfront work, it’s going to understand the full capability of what am I doing and why am I doing it so that I can see if I’m doing additions and bathroom models. And I’m pulling at the overall group of the year and I’m looking at my margins and what it actually costs me and what I was making money on. Then I can say remodels used to be, or bathroom remodels used to be 25% to 50% of my business. I’m going to scale that back this year to 25, and I’m going to pick up the gap on additions because I’m making more there, whatever the case is.

So, that makes a ton of sense, but that’s the big thing is Buildertrend isn’t going to know what to give you if the information isn’t in there.

Zack Wojtowicz:

Yeah. And that’s part of the process when you’re onboarding these things is trying to keep as many of those things in mind while you’re getting it off the ground, such as who’s using this. Who’s going to benefit from doing it? So many times I’ll go to offices and people are in the room discussing how they want to do things. It’s like they’ve never even talked to each other. I’m asking questions like, do you need this cost code, have you ever done this filter? How do you guys run the handoff between sales and the production to accounting? And it’s just like, well, we’ve always just kind of done it this way. It’s kind of interesting, where do those processes come from? Take a step back and really think about how is that transition going to happen, and then document it.

Reece Barnes:

You have to.

Zack Wojtowicz:

Yeah. Set up the infrastructure in Buildertrend so that it’s easy to use too. So, the job groupings. Don’t rely on your employees to add them for you, go into the system and add it for them so that they’re able to use it when you need them to. Don’t rely on them to figure out how to operate the budget, get a training with our team and have everybody in the room to talk about how the budget. And then follow up with us to make sure that you’re understanding how that implementation is going. You have to just kind of think about, from their perspective, if you just kind of lay it on their lap, it’s got to be a lot more difficult to get it off the ground and change their habits to get that reporting features that they want. And it goes with anything in the system. We could be talking about scheduling and that’s just sound fundamentals, making it as easy for them to use, but grid settings and filters are a big portion of that. So, you don’t have to worry about it later.

Reece Barnes:

This all circles back to one of our earlier conversations, I can’t remember what episode it was. I think it was cost codes, I think it was the very first one. When you’re getting your team involved. This isn’t one person deciding all of this. This is a strategic move to make it easier for your team and who’s going to be involved.

Zack Wojtowicz:

Absolutely. Another cool feature that a lot of people never get into is this idea of variance codes.

Reece Barnes:

I’ve heard it all the time, don’t know details.

Zack Wojtowicz:

And it gets confusing because when you sign up for Buildertrend, we already have variance codes in the program. We just give them to you out of the box. It’s not like the other cost codes that you can import, these are just defaulted in the system when you sign up for Buildertrend.

Well, with these variance codes, think of it as a flag. You get a bill and you know that that bill is over. But you don’t want to forget about it down the project. By applying a variance code to it, it actually will flag it in the budget and move the cost into the variance column. Well, now it does a calculation where it says, hey, on this particular item, you estimated that it was going to be a $1000. It came in at 1100 and you flagged $100 of it as a variance. That’ll tell you, hey, that was a 10% overage on that bill.

Then you can lay that across all your projects. So, going back to that job type that we just discussed, I want to see my kitchens and I want to look at my budget. Now, I can see all the variants additions, or excuse me, variance expenses separated from my actual expected expenses, and see this project had 3, 4% variance. Think about how powerful that is. My experience, less than 5% of users have even A, heard about variances, and B, are using them effectively. And that’s just another testament to the features of Buildertrend that people just never get into because they just are a little bit hesitant or they’re a little unsure. But it really does help you tighten up those margins just a little bit.

And then you can start finding patterns. Okay, I’m going to go to my bills POs, I’m going to filter by variance codes, I’m going to see how many variances I’ve had in the last six months. And I can see how much those variances cost me in real dollar amounts as well. And all it was was a little flag inside the bill. All I had to do was check a box and say this was a variance.

Reece Barnes:

That pays for your Buildertrend.

Zack Wojtowicz:

Absolutely, absolutely.

Reece Barnes:

That pays for a part-time employee, that pays for whatever.

Zack Wojtowicz:

Right. If you do discover it’s a vendor relationship issue and it’s always the same situation, now you can start …

Reece Barnes:

Have a conversation.

Zack Wojtowicz:

Having a conversation, or maybe looking for a new vendor as a means to save money in the long run. When we say reporting, it’s just about that manipulation of the data, and how a little bit of extra work while you’re doing the data entry can really pay dividends in the back end, which ultimately, that’s our goal is to help companies save money where they can, and even just take care of that subscription fee by saving them that cost. I actually, at one point had a builder that caught a $30,000 variance because of our budget system. And it paid for our visit and the Buildertrend subscription, just by a little bit of due diligence and teaching him how to pay attention while he’s entering those numbers.

Reece Barnes:

Sure. I love it. That’s why Buildertrend is yes a software, but when we claim to be our client’s partners, you’re partnering with Buildertrend to make yourself a better business, that’s where it comes from. Because so many people look at it as storing documents, photos, time clocks, using some of the schedule.

Zack Wojtowicz:

Those are important.

Reece Barnes:

Very, very. But what I’m getting at is, if there is hesitancy or bandwidth on the client’s end of not having time to dive into the details of this or really apply this, there is a monetary return tied to it. And that’s where, again, whether you are working more and investing more time with our customer support, or you are moving forward and utilizing our financial consulting or on-site consulting, yes, there might be an upfront cost, but what’s the return. What’s the return and what does that actually look like from an efficiency and a tighter business standpoint. I’ll let you keep going.

Zack Wojtowicz:

Sometimes it takes a while for the vision to come into play. When you get a new software, it’s like, whether you’ve been using Buildertrend for five years or two months, if you’re listening to this, I’ve seen it across the board, the spectrum, of there are going to be light bulb moments when you start to undertake these financial features and really kind of see the potential of what it has. So, where do we start? How do we begin to do this?

Reece Barnes:

You’ll learn how the budget works.

Zack Wojtowicz:

Yeah. Step number one of reporting is really understanding deeply what that budget is doing, how it works, and what happens. And one thing I kind of glossed over is, in this episode at least if you’re listening just to this one, your budget is the estimate. So if you get your estimate in some shape or form, whether you’re importing it or you’re just building it within the sales side and converting it, whatever, it doesn’t matter. That’s your budget, it’s already done. But when you look at the budget page, there’s a lot of data that’s in the …

Reece Barnes:

On the columns.

Zack Wojtowicz:

And so, you really want to start there. Go watch the videos in the help center. Call support. Make sure that that is clear. And then from there, start thinking about setting up those job groups, and getting that next piece, and then layering on top of it. And then from there, there’s a tab in the program that I think is just criminally underrated. And it’s likely because of the naming of it kind of confuses people, which I understand. It’s called the PO payment tab. And what it really is is the transaction tab. It tracks what is happening from an exchanging of money side of things. So, on a PO, for example, we talked about POs in our job costing episode, I can make three, four payments against that PO. But if I go to the PO payments tab, I’m going to see each payment as its own record.

Reece Barnes:

Love that.

Zack Wojtowicz:

So, now I can kind of dig in and see, on this payment, there was a variance, on this payment, there wasn’t. Also, here’s upcoming transactions because I’ve scheduled a payment. So, then you can set up those filters and reports and dig into how you’re going to utilize that to make decisions about cashflow. Because again, remember you view this across all your jobs. There’s some really powerful tools in that PO payment side. That’s where I would go after getting my budget established and getting my job groups.

And then from there, walk your users through how to use it. Sit down with your bookkeeper, with your employee, whoever, and show them how to use those filters. Did you know that you can customize the columns? Did you know that you can save these builders? This will save people time and annoyance because whenever the page reloads, the filter they had set up disappeared. You can eliminate all of that. And this format doesn’t allow me to show that, but just for the listeners out there, believe me, you can easily dictate these settings with just a quick, five-minute conversation, so that you’re able to just again and again reuse the same information, the same data. Sorry, I’m on a rant.

Reece Barnes:

No, I love it. And that’s again, not to be redundant, but to absolutely be redundant, call in to unlimited customer support. That’s why we have it. We want our clients to succeed and use as much of the program as they can, that’s going to help them run a better business. If these are the things that you’re interested in or you don’t have the time in, or necessarily the interest, talk to consulting. We can help take that off your plate. We have so many different channels for success that we, again, these are money saving directly correlating to your business impacting decisions.

Zack Wojtowicz:

Exactly. So, let’s wrap this up. We’ve spent a lot of time with the people out there, and now it’s time to say goodbye. It’s not goodbye, it’s just the start of a journey.

Reece Barnes:

It’s the start of a journey. Changing the way the world builds.

Zack Wojtowicz:

Exactly, exactly. A better way.

Reece Barnes:

A better way.

Zack Wojtowicz:

So, if I had to start somewhere, obviously, I would start with my cost codes. Take a hard deep look at how we can tighten those up, make things work more efficiently, eliminate codes that are unnecessary. And then I would have a conversation with my team to discuss who is going to be entering this data in the program. Who’s responsible for uploading the budget. Who is responsible for entering bills and POs into Buildertrend? How are we going to communicate this from one group to the next? Outline it, write it down. I literally sat with a guy in New Jersey once and helped him to find what a project manager looks like for his company. And he had never done it. He’d been in construction for decades and had never really outlined, this is what we want to do. I think that’s just part of good business is saying, here is your job expectation and this is how it works.

Reece Barnes:

If you don’t set the expectation, you as the owner or manager cannot hold your team accountable. You can’t. You can’t. It’ll be a double standard. They don’t know what to expect, you don’t know what to expect. Common knowledge is not supposed to be in the job description.

Zack Wojtowicz:

Right, right. And sometimes these things adapt on the fly. Obviously people wear a lot of hats in the construction industry, but you still can have a general rule of thumb about who is going to do this information in Buildertrend and make sure that person ever leaves, that it’s an easy plug and play when you’re hiring a new person to say, here’s the expectation of what our user that you’re replacing does. This is the system we use and here’s how they use it. Keep people in mind in those conversations that you’re having, like changing cost codes can be a really scary thing, especially if it’s being used across multiple departments. They want to have input.

I always tell people, don’t rush, have a team meeting, have it out. Don’t leave the room until everybody can live with the decisions that are made, because people are ultimately going to want different things, they have different goals as far as what they’re trying to accomplish. Find the common ground and make sure you have those conversations.

And after you get those cost codes, pick which feature to start with. We’ve covered six episodes worth of content. We’re not recommending you try to tackle them all at once.

Reece Barnes:

Not at all.

Zack Wojtowicz:

We want to lay it out there for people to know, hey, this is your buffet of options, but you pick and choose which you think are going to have the biggest return on your investment and your time spent if that makes sense. And it’s going to take time to really learn deeply about these procedures, these financial features. Keep Buildertrend on the back of your mind. We know how to get people to use this. We have experienced training people on the program obviously, and we see it from all different types of businesses. I’ve worked with cabinet companies, flooring companies, landscaping companies, remodelers, new home constructor, commercial contractors. There’s always a way, with a little bit of conversation and a little bit of experience, people can successfully get these things ready to roll.

Reece Barnes:

Absolutely. The biggest thing is even if, priorities shift every single day for all of our clients. Everyone always gets excited, they get hyped up, they want to use more of Buildertrend. I always say it’s like anything else that you’re wanting to do better at, whether it’s working out or building your business. You have to allow and build the time in of this is my Buildertrend time. Whether it’s lunch or 4:00 PM on a Friday or whatever it is.

Zack Wojtowicz:

Team meetings, talk about them.

Reece Barnes:

Team meetings, lunch and learns. Have the conference, order in some sandwiches, get the whole crew in, say, this is the project management team, we’re going to go over rescheduling today. This is what we’re going to be focusing on. It has to be a part of your business, and so many people, it’s tough to make that time, but once you do make that commitment and you do understand that Buildertrend is going to help you get to where you want to be, whether that’s working less hours, working for more margin, scaling your business, hiring more people, whatever that is, Buildertrend will be a crucial piece in that. It’s very capable, it definitely takes some effort though.

Zack Wojtowicz:

Absolutely. Well, I thin we’ve said it all, Reece. This was a lot of fun.

Reece Barnes:

I really don’t have much more to say, which is a rarity.

Zack Wojtowicz:

Hopefully, it will bring us back, for our listeners out there, maybe we’ll get a little fan club going.

Reece Barnes:

Yeah, that’d be good. We’ll start a Facebook page and we’ll start a hashtag maybe. I don’t know. Don’t hold me to that. I have to talk to marketing first. But we might be able to do it. For the final time, are you going to do the sign off? I don’t even know. We used to have a good sign off. Did you ever have a sign off? Do the sign off.

Zack Wojtowicz:

We’ll worry about that later on the next one. Thanks everybody. We’re calling it. Really appreciate your time and best of luck to you moving forward.

Outro:

Thanks for listening to “The Better Way.” If you’re a Buildertrend customer, schedule a training to learn more. Our next season focuses on risk management. Be sure to rate, review and subscribe wherever you get your podcasts, so you don’t miss out. Visit buildertrend.com/podcast to sign up for email notifications when the next season drops and explore our other podcast, “The Building Code.”


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