- Before you Start
- Enabling Budgets
- Budget Templates
- Creating Budgets
- Converting Estimates to Budgets
- Reporting on Budgets
- Reporting on Commissions
- Budgets and QuickBooks
- Do's and Don'ts
JobNimbus’s Budget feature helps you track the profitability of a job. It also helps you with other important metrics, including your gross profit margin and net profit. Budgets can be calculated based off of your budget goals and deductions that happen as a result of doing the work.
Here, we will go over how to enable the Budget's feature, update your Budget Template, and how to get the most out of your financial documents using your Budget feature.
Before we Get Into it
Before you create budgets in JobNimbus, plan out your required margin for your projects. Write down any line items that will be needed on all of your budgets.
To enable the Budgets feature, click on your name in the top right corner of the screen and select "Settings" from the drop-down menu. In your Settings, select "Features" from the menu on the left and then click on the "Enable" button to the right in the Budgets row.
After enabling the Budgets feature, a new tab will become available in the Settings menu, allowing you to create a Budget template.
Creating a Budget Template
To create a template, select "Budget" from the menu on the left.
This will bring up your Budget Template.
In your Budget Template, you can:
- Set a required Gross Margin. This will set a base margin for the difference between the revenues and the cost of goods sold. JobNimbus will warn you if a budget you create is less than the required Gross Margin you add in your template.
- Set a required Net Margin. This will set a base margin for the residual earnings left after all expenses have been deducted from revenues. JobNimbus will warn you if a budget you create is less than the required Net Margin you add in your template.
- Add Budget Line Items. These line items will be added to every single budget you create after updating the template. You can add more than one line item and reorganize them by clicking each line item and dragging it.
- Add Commission Line Items. These commissions will be added to every single budget after updating the template. You can add more than one commission line item and reorganize them by clicking each line item and dragging it.
- Update your Budget Template.
If you need to update a line item after updating your Budget template, click on the "Edit" button to the right of the specified line item. Or, you can delete it by clicking on the "Delete" button.
Creating a Budget
You can create a budget for your project from within your Contact's or Job's file. After you are in the Contact or Job, select the "Financials" tab. This will bring you to your financial documents. To learn more about your Financials, read our article here.
To create a budget, click on the "Add Budget" button in the Budgets panel.
This will pull up the Budget Builder.
In the Budget Builder, you can:
- Choose a price option for your budget, either through using an existing estimate or manually entering a price in for your budget.
- Change the Budget Date.
- Add line items. These line items are pulled from your Products & Services. Products & Services will use the price and cost you entered in to help build your budget. You are unable to add new products or services using Budgets. While hovering over the line item, the option to delete that line item appears.
- Add a Commission for your team members.
- Save your budget. This will take you to the Budget Viewer. It will also save the budget in the Budgets panel in your Financials tab.
When adding a line item to your budget, use the description field to enter your product or service. As you type in the product, a list of your products will populate from which you can choose.
You can then choose whether to use percentages or specific amounts to track your budgets.
When adding a commission, use the description field to enter in the commission details.
You can then choose percentages or a specific amount to track your commissions in your budgets and choose whether the commission is a percent of the total price or percent of the gross profit. You can then choose who the commission will be paid out to, whether that be to no specific team member, the Sales Rep associated with the Job, or another specified team member.
After you have added the commission to your Budget, you can update the percentage and even from where the percentage pulls using the drop-down menu and choosing either Price or Gross Profit.
After you have saved the budget, you will have the option of marking the commission as paid, by clicking on the "Mark Paid" text to the right of the commission line item.
If you have created a Budget Template, the line items and/or commissions you added in your Template will already be in your budget.
If you have set a required gross or net margin in your Budget Template and try to save your budget, but the gross or net margin is below the required limit, a message will populate warning you that the margin should be greater and not save the budget.
If you need to create a credit on a budget, you can add a negative number to your budget. To make a negative number on a budget first save the item as a positive number, then go back and edit it to a negative number "-500.00". The negative number will appear in parenthesis after saving indicating a negative number (500).
If you need to edit your budget after creating it, click on the 3 dots to the right of the budget and select "Edit" from the drop-down menu.
The other options you have in the drop-down menu are to:
- View the document in JobNimbus.
- Add a note to the budget
- Delete the budget.
Creating Budgets from an Estimate:
Reporting on Budgets
You can create a report based on your budgets. These reports can help you see your projections and margins more easily.
To create a budget report, select "Reports" from the menu on the left. Then, click on the 3 dots to the right of My Saved Reports and select "Create Budget Report" from the drop-down menu.
To learn more about creating custom reports, read our article here.
Reporting on Commissions
You can create a report based on the commissions you have entered into your Budgets. These reports can help you see which of your team members have been paid commissions, which are still owed, and how much total commissions you have paid out.
To create a commissions report, select "Reports" from the menu on the left. Then, click on the 3 dots to the right of My Saved Reports and select "Create Commission Report" from the drop-down menu.
To learn more about creating custom reports, read our article here.
Budgets and QuickBooks
JobNimbus doesn’t sync budgets to QuickBooks, and there isn’t much more to job costing beyond the budget tool that is supported aside from Material & Labor tracking which do sync as separate line items. If you want job costs in QuickBooks and want to avoid double entry, it would make sense to do it in QuickBooks as job costing features are more in depth there. We do sync "classes" with Quickbooks Desktop ( an aspect of job costing through linking financial records to expense accounts). We sync records that are transactions that you are charging your customers but not what your vendors are charging you.
Quickbooks online version of job costing is called projects. It has three statuses of In Progress, Completed and Canceled. It's functionality has reporting features which track profitability, sales transaction list, unbilled time, expenses and non-billable items. It interfaces with invoices, invoice payment, expenses, estimates and time.
Do's and Don'ts
- Add a minimal net margin to your budgets
- Create a budget for each project
- Create budgets with 0% margin
- How do I capture an invoice from one of my subcontractors?
You may want to upload the invoice from a subcontractor to attachments on a job or contact to store the information, (there is no way to have it interface or sync to our system). You could then have the total as a line item on a budget.
Can I create a budget template?
- I need to create a credit in my budget, how do I add a negative number?
To make a negative number on a budget first save the item as a positive number, then go back and edit it to a negative number "-500.00". The negative number will appear in parenthesis after saving indicating a negative number (500).
- How can I give my team members access to budgets, but not commissions?
Budgets and commissions cannot be separated by access.
- How can I give my team members access to their commissions, but not all commissions?
Commission access is all-or-nothing. You cannot separate commissions by access.
Still have a few questions about setting up your company’s budgets? Contact Support at (855) 964-6287 or via email at email@example.com.
Have a great idea to help us improve our budgets feature? Recommend features and vote for requests at JobNimbus Feedback!