Hey Joe: Why do some builders drive so many costs to job level costing instead of straight to the GL?

This question varies based on the accounting system you are using, though in general many builders like to have a job to capture non-lot job budgets and costs. For example, a project level job will never be a “house to sell”, but it is a great place to capture budgets and costs. One of the biggest benefits is the inception-to-date costing and budgeting. Whereas a GL cost center and budget run annually, a job cost level runs inception to date. Similar to capturing at the GL level, you would want to allocate costs from some of this type of job to actual lot jobs. For more information reach out to us using our ContactUs form and we’ll be happy to help.