QuickBooks Contractor Guide: Tips, Tricks, and Top Integrations (App Recs)

QuickBooks Contractor is a powerful tool made specifically for construction businesses. It helps contractors manage their finances, track job costs, and keep projects on budget. With tools for invoicing, payroll, and expense tracking, QuickBooks Contractor makes it easier to stay organized and see where your money is going.

This guide will walk you through setting up QuickBooks Contractor and show you how to get the most out of its key features. We’ll cover essential tips for accurate job costing, tricks for streamlining your work, and software integrations that can help you manage your business even better.

Whether you’re just starting with QuickBooks or looking to make it work harder for you, this guide has you covered.

QuickBooks Contractor Editions: Premier vs. Enterprise

QuickBooks offers two versions of QuickBooks Contractor: Premier Contractor Edition and Enterprise Contractor Edition. Both versions are designed for contractors, but they differ in features and scale.

The Premier Contractor Edition is ideal for smaller contracting businesses. It supports up to five users and includes essential tools like job costing, invoicing, and contractor-specific reports.

The Enterprise Contractor Edition is more advanced and supports up to 40 users, making it better for larger businesses with more complex needs. Enterprise can handle larger data volumes and offers more customization options than Premier.

Feature Highlights

Both editions share core features, including job costing, payroll integration, and contractor-specific reports like job profitability and cost-to-complete. However, the Enterprise edition includes extra features such as advanced reporting, enhanced inventory tracking, and the ability to manage more data and users.

Choosing the Right Edition

If you have a small to medium-sized business, the Premier Contractor Edition likely has all the features you need. But if you run a larger business or have more complex projects, the Enterprise Contractor Edition is the better choice for its scalability and advanced tools.

Comparison of QuickBooks Premier Contractor Edition vs. QuickBooks Enterprise Contractor Edition

Setting Up QuickBooks Contractor

Setting up QuickBooks Contractor correctly is essential for smooth project and financial management. Here’s a simple guide to getting started with your company file, job tracking, and cost organization.

• Start by creating a company file in QuickBooks Contractor, which will store all your business’s financial data in one place.
• Add contractors and customers to the system, so you can track transactions and link each job to a specific customer.
• Customize preferences to fit your business needs, such as setting up sales tax, invoicing options, and payment terms. These customizations will help the system align with your specific business processes.

Job Tracking Basics

Job tracking helps you monitor expenses for each project. Start by creating individual jobs for each project under the related customer. When you enter expenses, labor costs, or materials, assign them directly to the job. This way, you can view the profitability and costs associated with each project, making it easier to see where money is being spent.

Organizing Cost Codes and Items

Cost codes help you organize expenses by type, such as materials, labor, and overhead. Set up cost codes specific to construction so you can easily categorize expenses and see where each dollar is going. Additionally, create items for materials and services you frequently use. This allows you to add these items quickly to estimates, invoices, and job costs, saving you time and keeping your records accurate.

Essential Tips for Using QuickBooks Contractor

Using QuickBooks Contractor effectively can improve your business’s profitability and cash flow. Here are some essential tips to help you make the most of its features.

Job Costing

Job costing helps track labor, materials, and overhead for each project. Here’s how to set it up:

• Create cost codes for different types of expenses (e.g., materials, labor, equipment).
• Assign expenses to each job as they occur by selecting the relevant job and cost code. This includes labor hours, materials, and any additional project-related costs.
• Review job profitability reports regularly to compare your actual expenses to your budget, making adjustments as needed to stay on track. Accurate job costing gives you a clear view of project costs, helping you make informed financial decisions.

Progress Invoicing

Progress invoicing allows you to bill clients as work is completed, keeping cash flow steady.

• Create an estimate for the entire project, breaking down costs into phases or milestones.
• Convert the estimate to a progress invoice when ready to bill. You can choose to invoice for a specific percentage or dollar amount of the project.
• Repeat this process at each milestone, ensuring you get paid throughout the project and maintain cash flow.

Contractor-Specific Reports

QuickBooks Contractor includes reports designed for construction businesses. Key reports include:

• Job Profitability: Shows income and expenses per job, helping you see which projects are profitable.
• Job Status: Tracks the progress of each project and highlights any outstanding work.
• Cost-to-Complete: Estimates remaining costs to complete each job, aiding in budget management.

You can customize these reports by selecting specific date ranges, customers, or job categories to get the insights you need.

Payroll Integration for Job Costing

Integrating payroll with job costing lets you allocate labor costs directly to each project.

• Track employee hours by job to accurately distribute labor costs.
• Use payroll integration to automatically apply labor expenses to jobs, ensuring that labor costs are reflected in your job profitability reports.

This makes payroll processing smoother and helps keep project costing accurate by reflecting true labor costs.

Workyard integrates with QuickBooks to help you manage your business better

Find out more

Tricks to Maximize QuickBooks Contractor

Taking full advantage of QuickBooks Contractor’s features can help you save time, stay within budget, and protect your data. Here are some useful tricks for maximizing your setup.

Change Order Tracking

Change orders are common in construction, and tracking them properly is key to maintaining project budgets.

• Document all changes to the original contract or project scope within QuickBooks. Use detailed notes to specify what changed and why.
• Update job costs and estimates to reflect each change order, ensuring you have an accurate view of the project’s new budget and timeline.
• Regularly review updated job profitability reports to see the impact of change orders on your bottom line and avoid unexpected profit losses.

Class Tracking

Class tracking helps you organize income and expenses by category or location, especially if you’re managing multiple jobs.

• Set up classes for each project, department, or type of work. For example, create classes like “Residential” or “Commercial” if your business spans different types of projects.
• When entering transactions, assign the correct class to track expenses and income accurately.
• Run class-based reports to see which types of projects or departments are the most profitable, giving you insights into where your business excels.

Automating Tasks

Save time by automating repetitive tasks in QuickBooks Contractor.

• Set up recurring invoices for regular customers or ongoing services. This ensures you get paid on time without manually creating each invoice.
• Use automatic reminders for customers to keep payments on schedule.
• Automate bill payments for recurring expenses, freeing up time for other tasks.

Data Backup and Security

Protecting your financial data is essential for any business.

• Back up your QuickBooks file regularly to an external drive or cloud storage. QuickBooks also offers automatic backup options.
• Set user permissions to control who can access sensitive information. This is especially useful for larger teams.
• Use strong passwords and enable multi-factor authentication to add an extra layer of security to your financial data.

Further Readings

Learn more about Quickbooks. Check out these articles:

• QuickBooks Desktop vs. Online: Which Is Best for Construction?
• QuickBooks Bill Pay Guide: Setup, Optimization, Integrations, and More
• QuickBooks Scheduling Guide: Tips, Tricks, and Top Integrations (Software Recs)

QuickBooks Contractor Integrations

Integrating QuickBooks Contractor with other software can enhance productivity and help keep your construction business running smoothly. Here are some valuable tools that work well with QuickBooks Contractor, focusing on project management, field service, time tracking, estimating, and document management.

Field Service Management

Field service management tools streamline the connection between your office and field teams, allowing you to manage schedules and track job costs in real time.

• Knowify integrates with QuickBooks Contractor to handle project management, job costing, and field schedules. This integration makes it easy to send job updates from the field back to the office, so everyone stays on the same page.
• ServiceTitan also pairs with QuickBooks Contractor to help manage jobs, track labor and material costs, and organize schedules. By combining ServiceTitan’s field tracking with QuickBooks’ job costing, you can better control expenses and improve communication with your team.

Time Tracking and Payroll

Accurate time tracking is essential for effective job costing and payroll management, and QuickBooks Contractor integrates well with time tracking tools.

• TSheets by QuickBooks is a popular choice that allows employees to clock in from any location. It sends accurate time data to QuickBooks, making payroll simpler and ensuring that labor costs are properly allocated to each job.
• ClockShark is another time-tracking tool that works with QuickBooks Contractor. It allows you to track time and labor costs on specific jobs and locations, providing real-time updates to help manage payroll and job costs more efficiently.

Estimating Software

Accurate estimates are key to project success, and estimating tools that integrate with QuickBooks make this process easier.

• STACK integrates with QuickBooks Contractor to provide digital estimating solutions. You can build estimates, manage costs, and keep all job details in one place. This integration ensures that your estimates are easily linked to QuickBooks, making it simple to convert estimates into invoices.
• Clear Estimates is another estimating tool that syncs with QuickBooks Contractor. It offers pre-built templates and cost libraries tailored to contractors, making it easy to generate accurate estimates and send them directly to QuickBooks for invoicing and job costing.

Document Management

Staying organized with contracts and important documents is essential for any contracting business, and document management tools can streamline this process.

• DocuSign works with QuickBooks Contractor to manage contracts, signatures, and other documents securely. By linking DocuSign with QuickBooks, you can manage client contracts and approvals in one system, ensuring all signed documents are accessible when you need them.
• SmartVault is another document management solution that integrates with QuickBooks, allowing you to store, organize, and securely share project documents. SmartVault helps you keep track of paperwork, so contracts, permits, and invoices are all organized and easy to retrieve.

QuickBooks and Workyard

QuickBooks also seamlessly integrates with Workyard to enhance job costing and time tracking. Workyard’s integration allows contractors to track employee hours precisely and link those hours directly to QuickBooks, ensuring accurate job costing and payroll processing.

QuickBooks Quick Facts

Here are some quick facts about QuickBooks:

• Developer: Intuit Inc., founded in 1983.
• Initial Release: 1992 as a DOS-based program.
• Market Share: Held 74% of the U.S. small business accounting market by 2005.
• Industry Editions: Introduced in 2003 for contractors, non-profits, retail, and more.
• Enterprise Solutions: Launched in 2002 for medium-sized businesses.
• ProAdvisor Program: Over 50,000 members as of 2008.
• Recent Features: 2015 income tracker and 2019 invoice history tracker.

Advanced Tips for Growing Contractors

Here are advanced tips to help your growing contracting business maximize QuickBooks Contractor:

• Use Trends and Forecasting tools to compare expenses and profits across projects. Identify spending patterns to optimize budgets and increase efficiency.
• Track project profitability, expenses, and labor costs using the Job Profitability and Cost-to-Complete reports. Customize reports to focus on key metrics for better decision-making.
• If your business is expanding, consider moving from Premier to Enterprise for greater data capacity, up to 40 users, enhanced inventory management, and custom permissions.

Take Control of Your Projects with QuickBooks Contractor and Workyard

QuickBooks Contractor is a powerful tool for managing finances, tracking job costs, and improving project profitability. By following these setup tips, using essential features, and integrating with additional software, contractors can streamline their operations and make smarter business decisions.

As your business grows, these advanced tips and integrations can help you stay organized and scale effectively. For even more control over job costing and time tracking, consider integrating with Workyard, built specifically for contractors.

Try Workyard for free to see how it can enhance your QuickBooks experience and keep your projects on track.