A monthly statement with forty invoices
The trade counter statement arrives: forty invoices, each with tins of paint in various colours, masking tape, rollers and filler. Painters collected across a dozen jobs. Some invoices have a job name in the reference field, some have the painter's first name, some nothing. The bookkeeper posts it all to materials, because working out which job each line belongs to would take all day.
At the end of the month, nobody knows which jobs used more paint than quoted.
Why merchant invoices do not match jobs
Purchases on account are quick and convenient, and nobody slows down at the counter to give a proper job reference. The invoice is designed for the merchant's records, not yours.
- Job references are missing or inconsistent.
- One invoice covers several jobs.
- Colour-mixed paint is identified only by a code.
- Returns and credits are not linked to the original purchase.
- Invoices are posted to a general materials account.
What the unallocated costs hide
Without job allocation, you cannot see which jobs used more materials than quoted, whether painters are buying more than jobs need, or whether prices on your account are what you agreed. Wrong charges and missed credits go unnoticed.
Paint is often one of the biggest costs on a decorating job after labour, and yet it is usually the one with the least visibility. Labour is known roughly from the diary. Materials sit in a single line in the accounts, and the owner only sees the total each month. Whether a particular job used twice the paint it should have is invisible.
Accountants also find it harder to help. With materials in one account, they cannot tell you which types of work are most profitable, or whether commercial jobs use more or less materials than domestic. Allocated costs give them something to work with.
The invoice matching we build
- Invoices from the merchant, by email or from their portal, are read line by line automatically.
- Each line is matched to a job using the order it came from, the colour code against colour schedules, the collection date against where each painter was working, and any reference given.
- Painters can log purchases on their phone at the counter with a job, a photo of the receipt, and a tap.
- Lines that cannot be matched with confidence go to a short queue for a person to allocate.
- Prices are checked against your agreed account prices, and differences are flagged.
- Allocated costs are posted to Xero or QuickBooks against the job or tracking category.
| Clue | Used to match |
|---|---|
| Order reference | Orders placed from the job |
| Colour code | Job colour schedules |
| Collection date and branch | Painter's job that day |
| Painter's purchase log | Direct link to job |
| No match | Person allocates |
Materials you can actually see
Most lines match themselves. The bookkeeper handles a short queue instead of guessing. Each job shows materials used against the quote. Price errors on the account are caught. And painters buying on the account becomes something you can review rather than hope about.
It also makes conversations with the merchant more useful. When you can show what you buy, how much and for which kinds of job, you are in a better position to discuss account prices, delivery arrangements and which products you should standardise on.
Are your materials costs a black box?
- Merchant invoices are posted to general materials.
- Job references on invoices are missing.
- You do not know which jobs used more paint than quoted.
- You have found price errors on your account by chance.
- Credits for returns are hard to find.