QuickBooks Project Management Guide: How to Use, Tips and Tricks, Integrations, and More

Managing construction projects comes with a lot of moving parts—budgets, timelines, and resources all need to stay on track. Accounting software like QuickBooks helps simplify construction project management for small businesses and contractors.

QuickBooks combines financial tools with project tracking, making it easier to manage costs, track income, and monitor progress in real time. All together, these features help businesses stay organized and profitable without extra hassle.

In this guide, we’ll:

• explore how to use QuickBooks for project management,
• share tips and tricks to get the most out of it, and
• highlight the best tools that integrate seamlessly with it.

Whether you’re new to using QuickBooks or looking to optimize your setup, this resource has you covered.

Key QuickBooks Project Management Features

QuickBooks simplifies project management for construction businesses and contractors. Whether you use QuickBooks online or the desktop version, it combines financial tools with project tracking to help you stay on top of your jobs.

QuickBooks Online Features

QuickBooks Online is cloud-based, so you can access it from anywhere. Key features include:

• Real-Time Profit Tracking: See how much money you’re making or losing on a project as expenses and payments are updated.
• Easy Invoicing and Expense Tracking: Link expenses to jobs, send invoices quickly, and set payment reminders to keep cash flowing.
• Detailed Reports: Create custom reports to track budgets, income, and costs for better decision-making.

QuickBooks Desktop Features

QuickBooks Desktop is great for detailed job management if you prefer software installed on your computer. Key features include:

• Job Costing and Change Orders: Track all job costs and handle changes to contracts or budgets with ease.
• Flexible Billing: Bill clients by job phase, percentage completed, or materials used to ensure accuracy.
• Inventory and Class Tracking: Manage materials and other resources to keep costs organized and projects running smoothly.

Using QuickBooks to Manage Projects

QuickBooks makes it easier for contractors and construction businesses to manage projects by keeping everything organized—budgets, expenses, and labor costs. Let’s talk about how you can use QuickBooks to stay on top of your projects.

Setting Up Projects

Starting a new project in QuickBooks is simple. Here’s how you can get started:

1. Create a New Project
   • Open the Projects menu in QuickBooks Online.
   • Click “New Project”, give it a clear name, and assign it to a customer. Linking to a customer helps you track project-specific payments and invoices.
   • Add details like deadlines, estimated budgets, and project status to keep everything clear.
2. Track Expenses and Payments
   • Use QuickBooks to link costs like materials, equipment rentals, and labor directly to the project.
   • Upload receipts by taking pictures and attaching them to the expense.
   • Record income such as deposits or progress payments to track cash flow for each project.
3. Set Up Labor Costs
   • Assign employee timesheets or payroll to specific projects, so you know exactly how much you’re spending on labor.
   • For subcontractors, record their payments as project expenses to keep all costs accounted for.

By setting up projects this way, you’ll get an accurate picture of where your money is going.

Monitoring Progress

QuickBooks helps you track how each project is doing with useful tools:

1. Dashboards
   • The Project Profitability Dashboard shows how much you’ve spent and earned on a project. You can see profits in real time.
   • Check for overdue invoices, unpaid bills, and other tasks you need to handle right away.
2. Reports
   • Create detailed reports like “Budget vs. Actual” to see if you’re staying on track.
   • Run reports on specific categories like vendor costs or labor to spot areas where you can save money.
   • Schedule regular reports to review weekly or monthly.
3. Make Adjustments
   • Use the dashboard and reports to adjust plans if needed. For example, cut back on unnecessary expenses or move resources to where they’re needed most.

Leveraging Time Tracking Tools

Labor costs can be a big expense for construction businesses. QuickBooks Time (formerly TSheets) makes tracking time easier and more accurate:

1. Track Employee Hours
   • Workers can clock in and out from their phones using the QuickBooks Time app.
   • Use geofencing to automatically clock employees in when they arrive on-site and out when they leave, reducing errors.
2. Assign Time to Projects
   • Connect employee hours directly to specific projects. This will help you track the time spent on each task, such as framing or finishing.
   • Identify areas where work is taking longer than expected and adjust schedules to stay on track.
3. Use Data for Payroll and Billing
   • Sync time data with QuickBooks Payroll to ensure workers get paid for the exact hours they worked.
   • Use time reports to bill clients accurately for labor costs.
4. Improve Productivity
   • Review time-tracking reports to find where delays happen. Use this information to improve efficiency and save money.

Integrations for QuickBooks Project Management

Integrating QuickBooks with the right tools can make managing projects easier for contractors and construction businesses. These integrations help you track time, manage expenses, and streamline your work. Let’s explore them.

Top Tools That Integrate with QuickBooks

QuickBooks integrates with many tools that can help contractors with day-to-day tasks. Here are a few examples:

• Amazon Business Purchases: Automatically syncs Amazon Business orders with QuickBooks to track expenses without extra work.
• Connect to PayPal: Pulls PayPal transactions directly into QuickBooks, saving time and reducing errors.
• Connect to Square: Imports Square sales data into QuickBooks for fast and accurate recordkeeping.
• Shopify Connector by QuickBooks: Links your Shopify store to QuickBooks, making it easy to track sales and inventory.
• QuickBooks Time (formerly TSheets): Tracks employee hours and syncs them with QuickBooks to calculate payroll and job costs.
• SOS Inventory: Manages materials, orders, and inventory with tools designed for detailed project tracking.
• Method: Keeps track of customers and jobs while syncing important information with QuickBooks.
• Workyard: Designed for construction businesses, it offers crew scheduling, GPS tracking, and real-time updates. It syncs seamlessly with QuickBooks for accurate payroll and job costing.

Workyard integrates with QuickBooks to help make your project management a breeze.

Learn more

How to Integrate Tools with QuickBooks

Here’s how you can integrate tools into QuickBooks

1. Identify Your Needs

• Determine what your business requires most, such as time tracking, payroll, or resource management.
• For construction-specific needs, focus on tools that offer features like GPS-based time tracking, job costing, and detailed reporting.

2. Choose Compatible Tools

• Use QuickBooks-compatible software to ensure smooth data exchange. Tools like Workyard are designed specifically for construction businesses and integrate seamlessly with QuickBooks.

3. Set Up the Integration

• Log into QuickBooks and go to the Apps tab.
• Search for the tool you want to integrate and click “Get App Now.” Then, follow the on-screen steps to link your accounts.

4. Customize Settings

• Adjust integration settings to match your business processes. For example, map project names, job codes, and expense categories between QuickBooks and the tool.
• Enable automatic syncing to keep data updated in real time.

5. Test the Integration

• Run a few test transactions to ensure the integration is working properly. For example, create a mock project and sync expenses or time entries to check accuracy.

Best Practices for Integration

To get the most out of QuickBooks integrations, follow these best practices:

• Ensure Data Consistency: Use consistent project names, customer details, and categories across QuickBooks and integrated tools. Schedule regular reviews to confirm that data syncs accurately between systems.
• Train Your Team: Provide clear instructions on how to use the integrated tools with QuickBooks. Focus on training your team to log time, track expenses, or generate reports properly.
• Test Before Full Deployment: Run test scenarios to ensure data flows correctly between systems. Verify that syncing processes meet your specific business needs.
• Monitor and Adjust: Regularly check dashboards and reports from QuickBooks and integrated tools to track project health and adjust workflows as necessary.

Tips and Tricks for QuickBooks Projects

Managing projects effectively with QuickBooks requires organization and attention to detail. By following these tips and avoiding common mistakes, you can maximize your tools and keep your projects running smoothly.

Best Practices

1. Regularly Update and Reconcile Project Data
   • Ensure all expenses, invoices, and time entries are updated promptly. This keeps your project financials accurate and up to date.
   • Reconcile project data monthly to catch errors early. For example, compare your QuickBooks reports with receipts, timesheets, and other records to ensure everything matches.
2. Use Detailed Categorization for Accurate Financial Tracking
   • Categorize every transaction. Break costs into specific categories like materials, labor, and equipment.
   • Use job codes or class tracking in QuickBooks to separate costs for each phase of the project. This makes it easier to analyze where your money is going and adjust as needed.

Common Pitfalls and How to Avoid Them

1. Mistakes in Job Costing
   • Problem: Incorrectly assigning expenses or missing job costs can lead to inaccurate budgets and reduced profits.
   • Solution: Always link expenses and invoices to the correct project. Train your team to input data consistently and double-check entries regularly.
2. Errors in Time Tracking
   • Problem: Inconsistent or inaccurate time entries can throw off your labor costs and project estimates.
   • Solution: Use tools like QuickBooks Time for real-time tracking. Encourage your crew to clock in and out accurately and review timesheets weekly to catch mistakes.
3. Overlooking Budget Updates
   • Problem: Failing to adjust budgets as projects change can lead to overspending.
   • Solution: Review your project’s budget weekly using QuickBooks reports. Update forecasts and reallocate resources as needed to stay on track.
4. Underutilizing Reports
   • Problem: Not using reports can make it hard to spot cost overruns or delays.
   • Solution: Use QuickBooks’ reporting tools. Run detailed reports to track profitability, compare budgets to actual costs, and identify areas for savings.

Advanced QuickBooks Reporting and Insights

QuickBooks offers powerful reporting tools that help contractors and construction businesses track their finances and project performance. Using these reports, you can gain deeper insights into your operations, identify areas for improvement, and ensure your projects stay profitable.

Overview of Customizable Financial Reports in QuickBooks

QuickBooks lets you create reports tailored to your business needs. Some of the most useful reports for project management include:

• Profit and Loss by Job: View income and expenses for each project to see which ones are most profitable.
• Budget vs. Actual Report: Compare your budgeted costs to actual expenses to ensure you’re staying on track.
• Project Cost Detail Report: Get a detailed breakdown of costs, including materials, labor, and equipment, for each job.
• Time Activity by Employee or Vendor: Track the hours worked by your crew or subcontractors and assign those hours to specific projects.

QuickBooks also allows you to filter and customize these reports. You can focus on specific projects, time periods, or cost categories to get the exact insights you need.

Read More

Find out more about QuickBooks:

• QuickBooks Projects: Tips, Tricks, and Tutorials for Effective Use
• QuickBooks Construction Cost Codes: How They Work and How to Use Them Effectively
• QuickBooks Simple Start Reviewed and Compared: What’s Your Best Option?
• QuickBooks Expense Tracking: How-To Guide and Top Integrations
• QuickBooks Bill Pay Guide: Setup, Optimization, Integrations, and More

Importance of Monitoring Profitability and Non-Billable Time

Tracking profitability and non-billable time is key to running a successful construction business. It ensures projects make money and minimizes wasted hours, keeping your operations efficient and profitable.

Profitability

Monitoring profitability ensures that your projects are bringing in more money than they cost. Regularly reviewing reports like Profit and Loss by Job helps you identify which projects are earning the most and which ones might need adjustments.

Non-Billable Time

Non-billable time, like administrative tasks or delays on-site, can eat into your profits. Use time-tracking reports to understand how much non-billable time is affecting your projects. By identifying and reducing non-billable hours, you can improve efficiency and ensure more of your crew’s time contributes directly to the project’s bottom line.

Maximize Efficiency with QuickBooks

QuickBooks is an essential tool for managing projects, keeping budgets on track, and monitoring profitability. Integrations and advanced reporting can simplify workflows and help users make informed decisions.

Take your operations further with Workyard. Its precise time tracking and smooth QuickBooks integration help you control labor costs and improve project efficiency. Try Workyard today to see the impact it can make on your business!