How QuickBooks Helps With Construction Accounting
How QuickBooks Helps With Construction Accounting
QuickBooks Enterprise Construction has established itself as the most widely used accounting software in the market, and for good reason. Here are just a few of the features and benefits that make QuickBooks software a great choice for construction accounting.
Efficient Job Costing
As mentioned earlier, job costing is a crucial part of the bidding process. Accurately estimating costs potentially determines the project’s feasibility or success.
In QuickBooks Desktop, job estimates vs actual details and job profitability details are item based. This allows you to enter all your job-related costs to items instead of accounts, making your estimates vs actuals detail report look simpler and helps when you’re doing line item invoicing for clients.
Items play a much smaller role in QuickBooks online; however, you can avoid a lot of data entry by using bank feeds to import transactions if you aren’t using items to record costs.
Estimates and Invoicing
Estimation is a skill that sharpens with time. QuickBooks makes this easier by retaining all the data for every job. Subsequent project reports can be reviewed to help receive better estimates when working on future projects.
Estimating may become hard to track, especially with any amendments via change orders from the customer. QuickBooks lets you highlight these changes quickly and mention the new estimate, helping you keep track of all invoicing when these costs start rolling out.
With QuickBooks Online, you can build custom invoices and add terms of payment, taxes, and discounts. This helps track awaited and received payments on invoices already sent out.
Smart Payrolls
Payroll can get confusing during construction accounting because of the varying rates of wages for laborers with the added factor of hours worked.
It is easy to run payroll in QuickBooks desktop if you’ve already allocated labor and burden to jobs. All you have to do is run the payroll once the timesheet and cost codes are imported to a job.
Job costing of labor is much more time-consuming when working on QuickBooks Online if you need it broken down by cost codes and burden. It depends on the number of employees, jobs and cost codes you have in a pay period.
Job-Wise Profitability Reports
QuickBooks reporting features help retain transparency by keeping track of your budget per project and what expenses need to be incurred.
The job-wise profitability report shows how much you’ve spent vs how much you’ve estimated. It also shows you how much work is completed and what costs you’ve incurred up to that point. This provides a summary for a construction business showing the clients served within a particular period and the earnings for them, giving key insight to focus resources on the most profitable markets.
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