Financials and budgeting

QuickBooks for construction: Why your company needs accounting software

Graphic of laptop computer showing QuickBooks Online

Bookkeeping should be easy as easy as punching a few numbers into a computer, right? Unfortunately, for many construction companies, that’s far from reality. They’re still doing finances the old-fashioned way. We’re talking by hand or by Excel. If this sounds familiar, stop letting the slog of accounting get you down.

Manual entry for construction accounting isn’t just inconvenient – it’s also losing you money. A couple challenges of manual entry is the data only lives in one location: on a locally saved Excel sheet or on a piece of scrap paper in a pocket.

These outdated methods of logging financials add hours of communicating with subs and digging through paperwork. There’s an easier solution – a program that does the communication and number crunching for you without human error.

QuickBooks Online is proven to increase your accuracy and reduce wasted time on manual processes. You can categorize transactions, run detailed reports and upload receipts with a quick photo. 

The construction business is notorious for adapting to tech at snail’s speed. However, when it comes to your profit platform, you don’t want to fall behind. You need an accounting solution that streamlines and simplifies everything.

Let QuickBooks Online be your financial management solution.

What is QuickBooks Online?

QuickBooks Online is an accounting software that allows you to work from any location from any device as long as you are logged into your account. This is a good option for businesses that operate out of multiple locations and on-the-go.

QuickBooks Online allows financial collaboration in real-time from multiple devices and locations at once.

Can you use QuickBooks for construction?

QuickBooks can and should be used for all your construction accounting needs. Some of the many ways to maximize this software are sending invoices, tracking income, accepting payments, running payroll and tracking time on-the-go.

Think of QuickBooks as your one-stop program that keeps you on time, on budget and on target for your future business goals. Track your cash flow by pulling up expenses, invoices and payroll all in one place.

Construction can be a messy business with the network of contractors and subs working on a project simultaneously. QuickBooks is your central hub that’ll organize all jobs and expenses.

What are the top 7 benefits of using QuickBooks for construction?

Check out these benefits of using QuickBooks for your construction company.

1. Streamline accounting processes

Your accounting data instantly syncs across devices taking away the mess of paperwork. This includes processing payroll, balancing cash flow and analyzing profits and losses.

2. Automate payments

This is an excellent feature for integrating funds. You can easily send invoices with plans, contracts and photos and also accept payments right on your phone. Bonus, you’ll also receive a notification when an invoice has been paid.    

3. Job costing management

Enter time and expenses for each project and also run full job costing reports. You can easily follow which projects are making you money and which ones need further action.   

4. Manage subcontractors

Manage subcontractors and send a request through QuickBooks and they can upload their tax information right away. This saves valuable time preparing your 1099s. The time tracking option organizes the billable hourly time cost and expenses into one document.

5. Be ready for tax season

Come tax time, you can easily pull needed documents and share your books with your accountant. QuickBooks also digitizes and categorizes receipts for you. 

6. Free from data loss or error

All your financial info is protected in QuickBooks. Faulty Google Docs or spreadsheets that can be easily deleted or lead to errors with one fat-thumbed mistake can’t provide that.

7. Run construction finances remotely

Cut the ties with your desktop computer by editing files and reviewing numbers in the field or wherever you’re meeting clients. Plus, keep a close eye on all changes across job sites. Talk about freedom!

What are the main features of QuickBooks for construction?

QuickBooks for construction has four plan options based on your company’s size and needs. The cloud-based program works with you when you’re on the job or in the office and easily connects with your existing construction apps. Some of our favorite features are the ready-to-use templates and the time tracking software.

Access anywhere, anytime

Before we go any further, we first need to establish an understanding of SaaS, or Software as a Service. SaaS is also commonly known as cloud-based software. That means these types of systems can be accessed from any device as long as an internet connection or data is available.

That’s exactly what QuickBooks Online affords your company. Unlike QuickBooks Desktop, you’re not tied to a singular monitor with the application downloaded onto it. Instead, your finances become as mobile as you are.

Imagine this. You’re on the job site and you no longer have to race back to the office to assess job costs, send bills, generate invoices or accept online payments. It’s the power of QuickBooks now in the palm of your hand.

Ready-to-use templates

Work smarter. Use the QuickStart ready-to-use templates. Customize these premade templates and save them to use on all of your recurring projects.

These templates include everything you need in one spot: assignments, due dates, invoices, sales receipts, estimates, statements, purchase orders and bill payment stubs.

The best part about customizing a template is you do the work once and then duplicate the form for all following jobs.

Create, save, reuse … it’s that simple. 

User-friendly interface

The main dashboard is your landing spot. It works as a super organized overview that pulls together a summary of your current projects and finances.

You’ll get a quick summary of your business status: profits and losses, invoices, expenses and sales.

From there, you can easily connect with your bank, find specific invoices or enter bills and receipts. The menu bar is fully customizable. If you cannot find something, the global search bar is there for quick reference.   

Easy integration

Are you still having a hard time letting go of the spreadsheets? We’re here to tell you that on average it takes small business owners about 30 minutes to get started with QuickBooks Online. And if you run into any snafus, users have unlimited access to the QuickBooks support team.

What about moving your existing information? The Dataswitch feature allows you to securely upload and seamlessly move your data over in about 72 hours.

4 options to suit your company’s size and needs

All four plans provide access to QuickBooks online and customer support. Note that payroll is an optional add-on service.

1. Simple Start: $30/month

This is your basic plan that allows access for one user and two accountants. With this plan you’ll be able to:

  • Track income and expenses
  • Send invoices and accept payments
  • Sort income and expenses into categories for taxes
  • Run and export reports
  • Upload or email receipts
  • Track miles with GPS
  • Monitor and manage cash flow
  • Calculate taxes on invoices
  • Send estimates
  • Manage 1099s
  • Connect to one sales channel (Amazon, eBay etc.)

2. Essentials: $55/month

This level provides all the features of Simple Start, plus: 

  • Access for three users and two accountants
  • Enhanced reports
  • Manage and pay bills
  • Track time and billable hours
  • Connect to three sales channels

3. Plus: $85/month

Includes all the features of Essentials and more:

  • Access for five users and two accountants
  • Run specific budgeting and expense reports
  • Use templates for building and customizing reports
  • Track and sync inventory and cost of goods
  • Track project profitability and evaluate job costs
  • Connect to all sales channels

4. Advanced: $200/month

All the features of Plus, in addition to:

  • Access for 25 users and three accountants
  • Customized charts to show financial performance
  • Batch invoicing and expense
  • Customized access
  • Access to QuickBooks account team
  • On-demand training
  • Manage employee expenses
  • Data restoration

Multiple users

Create custom access levels for all members of your team. Everyone can connect in one place, but will be only able to access the information needed for their jobs.

You can give a business partner unlimited access, a contractor limited access to the time tracking tool and investors limited access to specific reports. Granting these permissions to multiple users is all up to you. No need to share usernames and passwords, your team will have their separate logins.

Want to know how long the installation took? Reference the time stamp with the time tracking tool.

Need to share Q1 financials with an investor? Grant limited access to your Q1 profit and loss statement.

The multiple users feature takes away individual texting, emailing or paper shuffling. This is collaboration at its best.

QuickBooks Online syncs with construction project management software like Buildertrend

One of the best benefits of cloud-computing models like QuickBooks Online is how easily they integrate with other cloud-based apps.

This is how QuickBooks Online helps power your business beyond bookkeeping. Construction job software like Buildertrend allows for QuickBooks Online 2-way sync. Information can transfer between both platforms with the push of a button. Plus, you have the ability to take job specific expenses that originated in QuickBooks and send them back into your Buildertrend budgets for more accurate job costing across all of your jobs.

Think about that for a minute.

That means no more double entry. No more managing multiple systems. It all comes together under one roof. Project managers can now keep their jobs flowing through one easy-to-use product and take comfort knowing QuickBooks Online is integrated to manage all the accounting pieces.

Let’s see it all in action: How to use QuickBooks Online and Buildertrend for construction

Step 1: From the start of a job, enter estimates, invoices and budget information directly into Buildertrend to set the financial foundation.

Step 2: Right from that same homebuilder app, create schedules, manage your team and communicate with clients.

Step 3: As the project progresses, every detail that needs to post to QuickBooks Online happens through smart financial features via Buildertrend. Even better, this is all visible to your accounting team, too.

Step 4: Get paid by clients and pay subcontractors all in one place – Buildertrend. With every penny managed through smart software, job costs and reporting have never been so accurate at the end of every project.

Get QuickBooks Online + Buildertrend now

Keeping track of all your dollars and cents by Excel leaves room for error and is sure to give your accountant countless headaches. Through tech seems like an investment, the benefits pay your business back tenfold.

Financial accuracy ensures nothing slips through the cracks, meaning you’re collecting on all the work you’re doing (not just some of it) and everything is now synced, streamlined and super accessible when you couple QuickBooks Online with Buildertrend. These two work together like a singular SaaS powerhouse.

Get started with Buildertrend now. Then integrating with QuickBooks Online is a cinch.

Construction is a complicated business, especially as companies grow and manage multiple projects at once.

Being able to manage the progress of jobs, keep a record of everything and streamline cash flow is critical to construction professionals. Buildertrend integrations, including the combination of Buildertrend and QuickBooks Online gives your team exactly what they need to run their business better. That level of peace of mind is priceless.

QuickBooks for construction FAQs

Check out these answers to frequently asked questions about QuickBooks for construction.

The best question to ask is not about the industry but more about your specific business needs. Which version is best for the size of your business? How many employees will need access? This is a great place to start.

If you’re a small to mid-sized construction company, we recommend the most popular plan – the Plus. This allows five users to have access and has the ability to track all your projects, track labor costs, complete payroll and manage expenses.

The best part about choosing a plan is you can start small and upgrade to the next version as your business grows.

The Contractor Edition is an add-on that’ll specifically allow you to budget and plan for the cost of larger jobs. It will cost you $800/year on top of your normal subscription.

Some features include track change orders, create purchase orders and assign costs to jobs. The Contractor Edition is limited to five users, and it’s difficult to share your books with an external accountant.

However, the job cost feature is excellent, so we recommend it if you’re looking to plan and budget for larger projects. However, take note that this is a local program and is best used for companies with in-house bookkeepers. 

Buildertrend, your favorite construction management software, provides an easy integration that transfers information back and forth across platforms.

Check out our blog that details QuickBook’s two-way sync

About The Author

Meghan Townley Meghan Townley is a freelance copywriter for Buildertrend.

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