How to Track Costs and Budgets in Built Simple: Complete Financial Control

Built Simple’s cost tracking and budget management features give builders real-time visibility into project profitability. Monitor actual costs against estimates, manage client and internal variations, track cash flow, and benchmark costs against industry standards. With these tools, you can identify savings opportunities early and ensure projects remain profitable.

Setting Up Cost Tracking

Initial Configuration (Web App)

Step 1: Enable Cost Features

1. Go to Settings → Features
   
2. Enable:
   • Cost Tracking ✓
   • Budget Monitoring ✓
   • Financial Reports ✓
   • Cost Benchmarking ✓ (new AI feature)

Step 2: Set Cost Categories

1. Navigate to Settings → Cost Categories
   
2. Configure categories relevant to your business:
   • Materials
   • Labor
   • Subcontractors
   • Equipment
   • Overheads
   • Preliminaries

Step 3: Configure Markup Rules

• Set default markups per category:
  • Materials: 20–30%
  • Labor: 10–15%
  • Subcontractors: 5–10%
• Option to override per project

Mobile App Setup

1. Sync cost categories with mobile
2. Enable quick cost entry
3. Set up expense capture
4. Configure notifications for alerts

Budget Creation

From Estimate to Budget

Automatic Budget Generation

1. Accept an estimate → click “Create Budget”
   
2. System imports:
   • Line items, quantities, rates
   • Markup/margin
   • Project phases/stages
3. Adds contingency line automatically

For guidance on creating your first project before budgeting, see [How to Create Your First Construction Project in Built Simple: Step-by-Step Guide].

Manual Budget Setup

1. In project, click “Budget”
   
2. Add budget lines:
   • Category
   • Description
   • Budgeted amount
   • Phase/stage
3. Set total budget
4. Lock when finalised to prevent accidental changes

To learn how to generate accurate estimates that feed into your budgets, refer to [How to Create Professional Estimates in Built Simple: Complete Guide].

Budget Structure

Hierarchical Organisation

Project Budget

├── Preliminaries

│   ├── Site setup

│   ├── Safety equipment

│   └── Temporary services

├── Structure

│   ├── Concrete

│   ├── Steel

│   └── Timber

├── Finishes

│   ├── Plasterboard

│   ├── Painting

│   └── Flooring

└── External

    ├── Landscaping

    └── Driveways

Budget Components

• Original Budget: From estimate
• Approved Variations: Client changes
• Current Budget: Original + variations
• Committed Costs: POs issued
• Actual Costs: Invoices received
• Forecast Final: Projected total cost

Recording Actual Costs

Purchase Orders

Creating POs (Web)

1. Click “+ Purchase Order”
   
2. Select supplier
3. Link to budget lines
4. Enter items: description, quantity, unit price, total
5. Send PO to supplier

Mobile PO Creation

1. Order directly on-site
2. Capture quote photo
3. Quick approval workflow
4. Send instantly
5. Budget updated in real-time

Supplier Invoices

Invoice Entry (Web)

1. Click “+ Add Invoice”
   
2. Match to PO (if available)
3. Or enter directly: supplier, invoice number, date, line items
4. Allocate to budget
5. Upload PDF/photo for record

Mobile Invoice Capture

1. Snap photo of invoice
2. OCR extracts line items automatically
3. Auto-match with budget/PO
4. Quick approval
5. Instant processing

Labor Costs

Timesheet Integration

• Workers log hours
• Rates applied automatically
• Costs calculated and updated to budget in real-time

Subcontractor Costs

• Progress claims linked to budget
• Retention and milestone tracking
• Variation tracking and payment scheduling

For managing subcontractor details, progress, and approvals, see [How to Invite Subcontractors to Your Built Simple Projects: Complete Step-by-Step Guide].

Cost Benchmarking (New AI Feature)

What is Cost Benchmarking?

Compare your project costs against industry standards and similar projects to identify savings opportunities and ensure competitive pricing.

Setting Up Benchmarking

Enable Feature

1. Go to Cost Intelligence
   
2. Set parameters:
   • Location radius (10–50 km)
   • Project types
   • Time period
   • Anonymity level

Contributing Data

• Costs are anonymised
• Improves database accuracy
• Provides better comparison and insights

Using Benchmarking

Project Benchmarking

1. Click “Benchmark” in project costs
2. View:
   • Your cost vs area average
   • Percentile ranking
   • Trend over time
   • Savings potential

Category Analysis

Concrete Work:

• Your cost: $280/m³
• Area average: $265/m³
• Your position: 73rd percentile
• Potential saving: $15/m³

Trade Benchmarking

Compare trade rates by region and season:

• Plumber
• Electrician
• Tiler
• Painter

Cost Calculator

1. Enter work type and quantity
2. Instant benchmark shows: low, average, high range, and your historic pricing
3. Example:

• Bathroom Renovation (5m²):
• Market Range: $8,000 – $15,000
• Average: $11,500
• Your Quote: $12,000
• Position: Competitive

Real-Time Cost Monitoring

Dashboard Views

Project Cost Dashboard

• Budget vs Actual graph
• Cost by Category pie chart
• Burn Rate tracking
• Variance Alerts
  
• Profitability Gauge
  

Key Metrics

1. Cost Performance Index (CPI): >1 = under budget, 1 = on budget, <1 = over budget
2. Budget Variance: Dollar and percentage variance by category and trend

Mobile Cost Tracking

Site Cost Entry

• Quick expense capture
• Photo receipts
• Allocate to budget line
• Track mileage and per diem

Real-Time Alerts

• Budget exceeded
• Unusual costs flagged
• Missing receipts
• Approval required
• Variance warnings

Variation Management

Client Variations

Recording Variations

1. Click “+ Variation”
   
2. Describe change
3. Enter price impact (materials, labor, margin)
4. Get approval
5. Budget updated automatically

Variation Tracking

• Monitor status and approval workflow
• Assess budget impact and profitability
• Keep client informed

Internal Variations

• Record site instructions
• Attach photos for evidence
• Track cost impact
• Assign responsibility
• Plan recovery options

Cash Flow Management

Cash Flow Forecasting

Setup

1. Link payment schedules
2. Map cost timing
3. Include variations
4. Factor retention
5. View cash projections

Visualisation

• Income vs expenses
• Cash position over time
• Critical funding periods
• Buffer analysis

Progress Claims

• Automated claims based on schedule or milestones
• Calculates work complete, less previous, plus variations, less retention
• Generate invoice with one click

Financial Reporting

Standard Reports

Project Profitability

• Revenue vs costs
• Gross and net margin
• By phase/stage
• Trends over time

Cost Analysis

• Budget vs actual
• Category breakdown
• Supplier performance
• Labor productivity
• Material waste tracking

Cash Reports

• Cash position
• Aged receivables
• Payment forecast
• Working capital
• Project funding status

Custom Reports

• Build reports by selecting data fields, filters, grouping, and calculations
• Schedule weekly/monthly summaries
• Exception reports for management
• Client-ready board packages

Integration Features

Accounting Software

• Supported: Xero, MYOB, QuickBooks, Sage, Custom API
• Sync options: One-way push, Two-way, Scheduled, Real-time, Selective

Banking Integration

• Import bank transactions
• Auto-match to POs/invoices
• Reconciliation
• Cash coding and bank rules

Best Practices

Daily Habits

1. Enter costs the same day
2. Photo all receipts
3. Review variances
4. Update forecasts
5. Check alerts

Weekly Reviews

1. Budget vs actual
2. Cash position
3. Upcoming costs
4. Variation approvals
5. Team meetings

Monthly Analysis

1. Full reconciliation
2. Profitability review
3. Benchmark comparison
4. Trend analysis
5. Take corrective actions

Common Mistakes to Avoid

1. Delayed cost entry
2. Wrong budget allocation
3. Missing receipts
4. Ignoring variations
5. Disregarding system alerts

Advanced Features

Predictive Analytics

• Forecast cost overruns
• Identify risk trends
• Run “what-if” scenarios

Multi-Project Analysis

• Portfolio-level insights
• Cross-project cost allocation
• Shared overheads
• Consolidated reports

Cost Libraries

• Historical rates
• Seasonal adjustments
• Location factors
• Escalation and supplier pricing

Troubleshooting

Reconciliation Issues

• Check date ranges, allocations, duplicates, and invoice/PO matching
• Contact support if unresolved

Sync Problems

• Verify internet, credentials, mappings, force sync, check logs

Report Discrepancies

• Validate filters, calculations, periods, and audit trail

Success Metrics

KPIs to Track

1. Gross Margin %
2. Cost Variance %
3. Cash Conversion
4. Days Sales Outstanding
5. Working Capital Turns

Improvement Targets

• Reduce cost variance <5%
• Increase margins 2%
• Faster invoice processing
• Better cash flow
• Accurate forecasting

Mobile Tips

Quick Entry

• Voice input
• Barcode scanning
• GPS mileage tracking
• Batch receipts
• Offline mode

On-Site Efficiency

• Pre-loaded suppliers
• Favorite items for quick access
• Template orders
• Approval shortcuts

Next Steps

1. Advanced reporting guide
   
2. Cash flow mastery
   
3. Integration setup
   
4. Benchmarking strategies
   

Need Help?

• Financial support: [email protected]
• Video tutorials: YouTube channel
• Templates: Download center
• Community: Cost management forum