If you’re a custom home builder, you know the drill: you’re on the job site all day, then handling bills from your phone at night. It works—until it doesn’t.
Without a system, things fall through the cracks:
✔️ Missed payment deadlines
✔️ Lost early payment discounts
✔️ Unhappy subcontractors
That’s why I’ve created a simple, repeatable accounts payable (AP) process that works inside QuickBooks Online (QBO) and fits how builders actually run their businesses.
Here’s the step-by-step system I use to keep AP under control for my builder clients.
Step 1: Centralize All Incoming Bills
Builders get invoices from everywhere—email, texts, paper on the dashboard. That chaos leads to missed bills.
Here’s the fix:
We set up a dedicated email inbox like ap@yourcompany.com. Then we connect that inbox to Hubdoc or QBO’s receipt capture tool.
What this does:
- All invoices flow into one place
- No more searching inboxes or filing paper
- Subcontractors and vendors know exactly where to send bills
✅ Pro tip: Train your vendors to always send invoices to this AP email—it saves time for everyone.
Step 2: Enter and Code Every Bill in QBO
Every bill that comes in gets logged in QuickBooks Online. We make sure to tag it correctly:
- Vendor name
- Job or project
- Class (like framing, electrical, plumbing)
- Cost code (optional but powerful)
This keeps your job costing accurate and makes sure every dollar is tracked to the right place.
💡 Why it matters: If you don’t tag your bills, your Profit & Loss report will show business-wide totals—but not how each job is doing.
Step 3: Set Up a Simple Approval Workflow
Builders want visibility and control—but don’t want to touch every invoice.
We make it easy:
- When a bill is entered, the builder gets a notification (via Hubdoc or inside QBO).
- They review and approve or reject it—right from their phone or laptop.
No bill gets paid without their OK. That keeps cash flow safe and prevents unwanted surprises.
Step 4: Schedule Weekly Payments
Once bills are approved, we batch them every Thursday and pay using:
- QBO Bill Pay, or
- Melio, which connects directly to QBO
Why once a week? It keeps things simple and consistent—and avoids paying bills randomly when cash might be tight.
💡 Tip: Paying on a schedule helps with cash planning and keeps vendors happy.
Step 5: Reconcile Monthly and Review AP Aging
At the end of each month, we do a quick AP review:
- Match bills in QBO with what cleared the bank
- Make sure vendor balances are correct
- Run an AP Aging Report so the builder knows what’s due next week—or next month
This keeps surprises out of the financials and helps with forecasting.
Common Mistake: Not Tagging Bills by Job or Class
If you’re not tagging your bills by project or trade, you’re flying blind.
You may be paying your subs on time—but your reports won’t show which jobs are profitable (or not). That’s a problem when materials go up or labor runs long.
✅ Actionable Insight:
Turn on class tracking and location tracking in QBO. Start tagging bills now—even if it’s just by job name. It’s the fastest way to see where your money’s going.
Final Thoughts: Make AP Run Like a Machine
Managing bills shouldn’t feel like a fire drill. With the right tools and workflows in place, it just runs.
You’ll:
- Pay bills on time
- Stay on top of job costs
- Keep your subs and vendors happy
- Avoid last-minute scrambles and cash flow problems
Need help setting this up for your building company?
I’ve helped custom home builders all over the country streamline their AP process using QBO. Let’s get your system running smoothly—reach out anytime.