Managing construction inventory is unlike managing retail inventory because your supplies aren't stored in a single warehouse. Inventory is constantly moving between job sites, making it difficult to know what's available, where it's located, and when it needs to be replenished.

Without a reliable tracking system, missing equipment, misplaced materials, and supply shortages can lead to costly delays. This guide explains how construction teams track inventory across job sites and how Intuit QuickBooks helps connect inventory management with the rest of the business.

Table of Contents

• Why is inventory tracking critical in construction?
• What construction teams need to track
• Common challenges in tracking equipment and materials
• How construction teams track inventory across job sites
• Benefits of digital inventory tracking systems
• How integrated systems improve inventory tracking
• How Intuit QuickBooks supports construction inventory tracking
• Manage your construction inventory right from Intuit QuickBooks
• Frequently asked questions

Why is inventory tracking critical in construction?

If you don't know how to track construction inventory, or your current method isn't keeping up, you'll probably experience the following problems:

• Tools and equipment move between job sites constantly, so without tracking, losses and delays are inevitable.
• Supply chain issues or delays in materials can affect project timelines.
• Sharing tools and equipment across multiple job sites leads to mistakes unless inventory is tracked and distributed to the right locations.

What construction teams need to track

Construction teams have to track consumables, like floor protectors, and safety equipment. They also have to include different types of inventory, like building materials, tools, and equipment.

Inventory to track:

• Tools such as power equipment and trailers to transport materials between the yard and work sites.
• Equipment like excavators, lifts, and compressors assigned to specific job sites.
• Materials like lumber, concrete, and pipes to be installed at the building site.
• Supplies like fasteners, hardware, and adhesives that are stored in the warehouse until use.

Common challenges in tracking equipment and materials

Construction companies are well aware that supply delays and inventory issues can derail a project.

• Lost or misplaced tools can put a project behind schedule or end up costing more as tools are purchased again.
• No visibility across job sites means that crews order duplicate materials because they don't know what's already on site.
• Manually tracking inventory means human error can lead to mistakes like inventory ending up at the wrong work site.
• Equipment needs maintenance, but it wasn't scheduled, so it's not operational when you need it at a job site.

How construction teams track inventory across job sites

Inventory management techniques can vary, but you'll want to choose a method that makes sense for your construction business.

Benefits of digital inventory tracking systems

Digital tracking clearly solves one of the biggest limitations: updating and seeing inventory in real time. But that's not the only benefit of inventory software for construction.

• Real-time visibility allows you to know exactly where every tool and piece of equipment is across all job sites, without making calls.
• Reduced loss means you're not paying more to purchase materials that are already at a different location.
• Better planning means your construction teams can focus on the job instead of locating supplies and materials.

How integrated systems improve inventory tracking

Construction projects involve many moving parts, including inventory, accounting, and project management. Instead of manually updating and analyzing multiple trackers, use an integrated system.

• Connect inventory to accounting to accurately reflect project costs, fill out invoice templates, and calculate markup.
• Link inventory tracking to project management so tools and materials are at job sites when you need them.
• Review centralized data to make important project decisions that affect your company's profitability.

How Intuit QuickBooks supports construction inventory tracking

Construction inventory tracking is just one important component of a broader construction accounting system. Intuit QuickBooks construction software integrates inventory tracking with other tools for a centralized system.

• Inventory is tied to financial tracking, so you can make real-time decisions about project costs and easily generate invoices.
• Time-tracking tools allow field teams to adjust schedules to hit labour targets.
• GPS-tracking of tools, equipment, and materials means your supplies are where you need them when you need them.

Manage your construction inventory right from Intuit QuickBooks

Construction inventory tracking is just one important part of construction accounting. Intuit QuickBooks combines inventory management with expense tracking, so you can see data from multiple projects in one centralized place.

If you're tired of running out of materials on the job, manually entering and updating spreadsheets, or finding that material costs have eaten into your profitability, it's time to improve your inventory tracking software.