All projects created prior to 12/15/22 will not have a "Financials" tab. These projects use the classic "Budget" tab.
We strongly recommend converting your old Budget over to the new Financials by clicking the "Learn More" link above the Budget Summary. This will allow you to seamlessly convert your Budget to the new Financials.
The Financials tab in BuildBook allows you to track your job costs while keeping your clients up to date on the status of the Project Budget, including any Expenses, Change Orders, Credits, and Payments. As you start adding Budget Items, everything rolls up into your Summary and shows both the original Cost to Date, Estimated Budget, and the Projected Budget (taking into account change orders, selections, etc. in the remaining balance).
The Financials consists of six sections:
The Summary is broken down between Costs to Date, Estimated, Projected Costs. The total includes all items and selections along with any additional markup, taxes, and/or management fees.
Change Orders and Credits are included in the Summary beneath the Total and added or subtracted from the Total Price. Any Payments made by the client will be reflected beneath the Total Price.
Cost to Date
Cost to Date
The Cost to Date column in the Financials Summary totals all expenses broken down by Item Costs and Selections, which allows you to track your costs against your Estimated Price and Projected Price. Learn more about tracking expenses.
Estimated and Projected Columns
Estimated and Projected Columns
Estimated Costs refer to the amount approved in your contract. Projected Costs reflect any unplanned changes, most likely via a Change Order or Credit.
Item Costs: This is the sum total of all budget items (Ex: Masonry and Carpentry cost codes.)
Markup: This is the sum total of any items that have markup
Selections: This is the sum total of all Selection Category allowances, i.e. how much you’ve planned to spend on selections.
Pro tip: If the individual Selection Item amount in a Selection Category is lower than the allowance AND all items in that Category are marked as Complete, the Projected column updates to reflect that value. i.e. Once all items in a Selection Category have been selected, the final values are used.
Management Fee: Add either a Fixed Fee or Cost Plus Percentage to be added to your Summary. This is the total of the Management Fee applied to the Sub Total of the Items.
Tax: This is the sum total of any items that have a tax percentage added to them.
Change Orders: Displayed in the Projected column, this shows the sum total of all Change Orders that have an "Approved" status.
Credits: Displayed in the Projected column, this shows the sum total of all Credits.
Total Price: Total of Item Costs, Selections, and Change Orders, minus Credits.
Payments: The sum total of all Payments marked as "Paid".
Balance Remaining: Project Total minus Payments made.
Create the Budget
The budget is edited within the Budget tab, where you can also add new items or create a budget from scratch.
The Budget tab gives you a comprehensive look at the Items that are associated with your Project. Items are organized by Cost Code Category.
There are a few ways you can create your Budget:
Convert an Estimate to a Project
From your Price Book
See how you can convert an Estimate into a Project a populate your Project Financials and Selections with the Estimate here.
From the Price Book
Add frequently used items to your Budget easily through your Price Book. Clicking on '+Add from Price Book' will bring you to a list of items you have stored there. You can choose items from your Price Book that already have data like the Cost Code, Type, Quantity, and Price.
If you need additional information on Cost Codes and the Price Book, head over to this article.
To start creating your budget from scratch, click 'Start from Scratch" and fill in the details:
The book icon to the left of the "Name" field pulls up your Price Book to prefill the Budget Item
Associate the applicable Cost Code or leave as 'Uncategorized'
The 'Type' chosen will automatically associate the correct 'Unit' options beneath the Description
Hours, Days, Weeks, Months, Each, Cubic Feet, Cubic Yard, Gallons, Linear Feet, Linear Yard, Pounds, Square Feet, Square Yard, Squares, Tons, Cubic Centimeters,
Each, Cubic Feet, Cubic Yard, Gallons, Linear Feet, Linear Yard, Pounds, Square Feet, Square Yard, Squares, Tons, Cubic Centimeters,
The bottom line is where the Unit, Tax, Quantity, and Unit Cost are taken to calculate the item Cost
The Price reflects the Cost with or without any applicable Markup
Currently, items added using + Add Item do not yet save to your Price Book. We recommend adding it to your Price Book if you feel it's an item you will use in other budgets.
Edit the Budget
Click on the blue hyperlink in the name of the item in the Budget tab to make edits. You can make changes to the Item Name, Cost Code, Type, Status, and description.
Budget Items include Cost to Date, Estimated, and Projected tabs.
Cost to Date displays any expenses associated with specific budget items.
The Estimated tab is the amount that was originally presented in your Proposal and/or approved contract. The Projected amount is always the same as the Estimated amount unless you choose to override it.
Delete the item by clicking on the ••• menu in the top right corner of the item. These edits in the item will auto-save.
Note: Edits to items within the Budget do not transfer to items in the Price Book and vice versa. If you want to permanently edit an item, do so in the Price Book first and then make your edits within the Budget.
Spreadsheet View & Category View
There are two views for your budget that you can choose from, depending on how you'd like to view and edit the budget.
The Category View is organized by your Cost Codes, beginning with the Cost Code Categories followed by each individual code. These are listed numerically. This view includes Cost to Date, Projected, and Estimate columns.
Track both the original allowance as well as the actual amounts once selections have been made. Your Selection costs will be managed per Item in your Selections tab or by clicking on a specific Selection.
If you haven't already, take a look at Setting Up Your Client Selections. Selections can be added to your Budget by procuring an item from your Price Book, adding an item with Type as a Selection, or adding a Selection Category to your Selections.
As we all know, it wouldn't be construction if things went exactly according to plan!
Change orders can be created by going to the Change Order tab within the Financials. Simply select + Add Change Order in the top right corner. Within the Change Order, you'll have the ability to describe what's changing, if there is a due date, the amount of the change, and the status.
Change Orders are created as a "draft" and then marked as "approved" once the client agrees. Currently, the way Clients can approve these Change Orders is by commenting within the Change Order that it's approved. Only Change Orders that are approved will roll up into the Budget Summary.
Note: only approved change orders have an impact on the budget summary.
Credits and Payments
Track any discounts, write-offs, or other items that you need to reverse out of your budget.
Log any payments that the client has made or will be making.
This allows the client to always see an accurate view of their projected outstanding balance in the budget summary. You can set up a full payment schedule upfront, or you can add payment items as the project progresses. Note: only payments marked as "paid" have an impact on the budget.
The Financials are client-facing and you can choose what information you want to be visible to your client by clicking the "Client Visibility" dropdown in the Budget tab of your Financials.
Here you'll see the same settings that are included in the Estimate. If you created your budget from an estimate, the visibility settings from the estimate will carry over to your budget.
Clients do not see the Cost to Date or Expense details
You can customize which item details you would like to share including:
Categories (this is only applicable from the "Detailed" Total vs. the "Summary" Total
Individual Line Items
Qty, Unit Price
There are two options to display the total:
Summary with lump costs, taxes, and fees in a single total sum:
Detailed with costs, taxes, and fees as separate line items in the subtotal
Once you've applied the visibility settings you'd like, you can preview what the client sees by clicking on See what the Client sees at the bottom of the Client Visibility dropdown.
You will notice that the client is unable to see any markup and management fees, allowing you greater flexibility in your pricing. The client will be able to keep track of any change orders, credits, or payments applied.