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Integrating Labor Costs from QuickBooks Online to BuildTools

This article describes one method of getting labor costs to sync into BuildTools

Hector Borrego avatar
Written by Hector Borrego
Updated over a week ago

Purpose

BuildTools pulls cost data from QuickBooks Online (QBO) at the item (product/service) level. Payroll, however, posts directly to the general ledger (GL) without using items. This creates a gap where labor costs don’t flow into BuildTools.

This guide explains how to bridge that gap using a $0 Vendor Bill approach so labor costs appear in BuildTools job costing without affecting the books in QuickBooks.


✅ What You Need Before Starting

  1. QuickBooks Online (QBO) with company file access.

  2. BuildTools–QBO integration already connected.

  3. Payroll data available in QBO (either internal QBO Payroll or outside service like ADP/Paychex).

    • Must be able to report labor costs by job (dollars or hours).

  4. Product/Service Item(s) in QBO

    • Create at least one Service Item called Labor (or multiple: Framing Labor, Trim Labor, etc.).

    • Map each Labor item to a special GL account (e.g., Job Costed Wages) that will always net to zero.


🔧 Step 1: Create the Labor Service Item

  1. In QBO, go to Settings → Products and Services.

  2. Click New → Service.

  3. Name it Labor (or a specific type of labor, if you want to track separately).

  4. Link it to a GL account called Job Costed Wages (a clearing account).

    • This account should always remain $0 because entries will debit and credit the same account.


🔧 Step 2: Capture Payroll Dollars or Hours

  • From QBO payroll or outside service:

    • Run a P&L by Customer/Job report to see labor costs allocated by job.

    • If using timesheets, pull hours per job.

    • Decide whether to push into BuildTools as:

      • Actual payroll costs (wages + taxes), OR

      • Burdened labor rates (e.g., 40 hours × $50/hour).


🔧 Step 3: Enter a $0 Vendor Bill

This step “translates” payroll into BuildTools-readable data.

  1. In QBO, go to + New → Vendor Bill.

  2. Vendor = Labor Job Costing (create a dummy vendor for this purpose).

  3. Enter line items:

    • Choose the Labor service item.

    • Assign the correct Customer/Job.

    • Enter the dollar amount for that job’s labor.

    • QBO will auto-post debit/credit to Job Costed Wages, keeping GL at zero.

  4. Ensure the total of the bill is $0.00 (offsetting line balances).

  5. Save.


🔧 Step 4: Sync with BuildTools

  • On next sync, BuildTools pulls the Labor item and assigns it to the mapped job.

  • Result: Labor dollars appear in BuildTools budgets/actuals just like materials or subcontractor costs.


⚖️ Why the Math Balances

  • Each $0 Vendor Bill debits and credits the same GL account (Job Costed Wages).

  • QBO’s financials remain unchanged (real payroll already posted separately).

  • BuildTools receives labor data as itemized job costs, aligned with budget codes.


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