Using QuickBooks in Construction Accounting
Minimum Bottom Line Profit Should Average 9.4%!
For Trades & Subcontractors, at Least 11%
After Income Taxes Are Paid!
Over the last 28 years I have become a fan of QuickBooks over other accounting software. Having been involved in construction accounting, I have set up over four dozen construction clients on this software. Overall it is the easiest and one of most widely accepted accounting software to use in the market today. This article is designed to illustrate how to use QuickBooks with construction accounting. The results will blow you away in terms of gaining financial improvement.
This article is very long and is designed to provide guidance and knowledge for the small contractor. I’m sorry, but I’m here to help you and in business, the devil is in the details. For this to be effective, I have to address a lot of details. But once done, you will be amazed at the value it will bring to your business. I’m not talking about a few hundred dollars of improvements, I’m talking about 10’s of thousands of dollars EVERY YEAR! Bottom line money that goes into the owner’s pocket.
Although complicated for most, I have developed a knack for implementing QuickBooks for residential/commercial contractors, so it comes rather easily for me. When done reading, if you want help, contact me at firstname.lastname@example.org. My fees are reasonable and in general it takes less than 10 hours to set it up and train you on how to use the software properly.
First read for an overall understanding and if you desire to implement QuickBooks, then read to absorb the information and use the information to assist you in setting up QuickBooks in your construction company. In addition, contact me and ask questions. Better yet, tell me how the software is working for you and tell me about your business. I really do want to help.
Prior to beginning, there are some terms you need to understand. The first is class accounting. To get a well-rounded understanding of class accounting, please read Class Accounting in Construction. As a small contractor, you may be in the business of not only building new homes but doing additions and renovations to existing homes. Class accounting in QuickBooks allows you to separate these divisions and understand which particular area of construction performs well and which ones need improvement. Think of this as departmental accounting.
The second term is phase accounting. This type of cost accounting is designed to break a project out into distinct groups of costs. As costs accumulate inside each phase for a particular project, the contractor can begin to identify areas of improvement to better achieve financial success. The following is an introduction to phase accounting: Use Phase Accounting in Construction. Phase accounting
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