Basics of Expenses

Background

In Contractor Foreman, the Expenses module is an essential tool for tracking costs that arise unexpectedly during a project or expenses that were not initially included in the project’s estimate. Tracking these additional costs is crucial for maintaining an accurate record of your project’s financials and ensuring that no costs go unaccounted for.
These expenses can arise from various situations, such as purchasing materials, tools, or supplies that are needed on site, which is not in the estimate. For example, let’s say you run out of gun nails at a construction site. These nails may not have been accounted for in your initial estimate, but you need to buy more to continue work. In this case, you can log this purchase in the Expenses module to keep track of this extra cost.
To access and use the Expenses module in Contractor Foreman, open the main menu, and select Expenses. This will take you to the module where you can view existing expenses or add new ones.

Steps to create an Expense

To add a new expense, go to the Expenses Module and click the + Expense button. You will be prompted to enter details of the expense such as the Project*, Total*, Expense Name*, Vendor, Bank Account, and the Category. Only the fields with an asterisk are mandatory, but entering as much details as you can will help you to track them easier. Remember, best practice is to fill all the blanks. Click on the blue “Create Expense” button and you will be redirected to the expense record where you can add further details.

Details Section

Once you are within the Expense record, you will have the ability to add the following:

• Reason: Here you will type the reason why the Employee or the User had to spend money in that Project, for example, “workers run out of drywall screws during installation”
• Type: You can pick one of the 5 different item types that Contractor Foreman uses MLESO (Material, Labor, Equipment, Subcontractor, Other).
• Employee: It is the employee or user who made the expense.
• Cost Code: in Expenses are used to categorize and allocate costs to specific parts of a residential construction project, such as framing, plumbing, or electrical work. This helps in tracking spending accurately, analyzing budget performance, and ensuring accountability. For instance, if $200 is spent on additional plumbing fittings, assigning it to the Plumbing cost code ensures it is logged correctly and aligned with the project budget.
  • Only 1 expense can be associated to 1 cost code.
• Reference Number: in Expenses is used to uniquely identify and track a specific transaction or purchase. It helps in cross-referencing with receipts, invoices, or financial records, ensuring clear documentation and easy retrieval. For example, a fuel purchase might have a reference number matching the receipt for precise tracking.

Files Section

The files section allows you to upload the ticket of the actual expense for your records.

Notes Section

The notes section allows you to enter notes relevant to you or team members that will work on the same record. These notes are for coordination purposes.