![]() This is one of the more frustrating shortfalls for those working in the commercial construction industry. Quickbooks Tip #3: Short pay invoices to track retainage The software also doesn’t produce the required report format for most state or federal projects, so you’ll have to get the info from the payroll reports and retype it into a form. You’ll have to set-up different pay items for the required hourly rates and additional items to cover the fringes. Quickbooks says it can handle prevailing wage projects, but it is usually a matter of doing several workarounds to get it right. Quickbooks Tip #2: Use pay items to account for prevailing wages You’ll need to work with an expert to get those costs into the jobs where they belong. Quickbooks categorizes all payroll burden expenses (taxes and benefits paid by the company) as an overhead expense. It is very important that these calculate correctly, so be sure to run some test payrolls before you go live. You will also need help setting up the payroll taxes, deductions, and benefits. They can help you decide what your chart of accounts should look like and how you should structure your balance sheet and other financial statements. The expert could be your CPA, accountant, bookkeeper, or even an experienced Quickbooks user. The best advice is to consult with an expert before setting up your company file. The problem is every contractor is different and everyone runs their company differently. The software takes you through an interview process that is meant to make setting up your initial company file as simple as possible. Quickbooks Tip #1: Get expert help with setup Here are 5 tips to help contractors use Quickbooks accounting software more effectively. There are a few things that Quickbooks could do better for contractors. While the software is pretty helpful right out of the box, it’s not perfect. All the calculations are performed by the software, so there’s no need for separate tracking. ![]() Quickbooks quickly and easily prints the year end tax forms you need, including W-2s, 1099s, and final payroll reports. Quickbooks makes payroll tracking even easier with an add-on like TSheets, which includes a time clock app for construction and field crews. Reports are clear and easy to understand and provide all the detail you need for tax back-up. Enter the time, process checks, then either print them or send them to the bank for auto deposit. Once you set-up your deductions, taxes, and employer-paid taxes and benefits, running payroll is pretty easy. How contractors use QuickBooks to track cash flow Payroll Several built-in reports make getting this information a snap. Quickbooks software can quickly tell you where your money has gone and where it is coming from. Cash Flow ReportingĬontractors are hyper-focused on their cash flow – and for good reason. The out-of-the-box reports are very useful and easy to understand, and it is easy to drill-down in a report to see the detail that makes up each number. It can even show you what phase of the work costs more than others. If you enter or import your project estimates into the software, you can run job costing reports that quickly show you if a job is over budget. ![]() Learn how to set up job costing in QuickBooks Enter information in a couple of screens and you’re done. Fortunately, Quickbooks makes it very easy to set up both customers and jobs. Job Costing and EstimatingĮvery construction business should be using job costing to calculate income and expenses on each project. The Bottom Line: Quickbooks works for contractors with some adjustmentsĤ Things Quickbooks Does Well for Contractorsįirst, let’s talk about four things that Quickbooks construction accounting software does well for contractors and businesses.Quickbooks Tip #5: Watch out for the delete button.Quickbooks Tip #4: Use Excel for WIP reporting.Quickbooks Tip #3: Short pay invoices to track retainage.Quickbooks Tip #2: Use pay items to account for prevailing wages. ![]()
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