Industry QuickBooks Training

Mastering QuickBooks Online for Contractors 

Mastering QuickBooks Online For Contractors

$425

Accounting for the contracting industry is challenging. Not anymore! Learn to use QuickBooks to meet your unique needs. Discover powerful tips designed just the contractor industry.

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QuickBooks Training

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Master QuickBooks with the ultimate industry training bundle. Includes over 60 online videos and 10 industry specific digital eBooks made by professional QuickBooks accountants.

QuickBooks Online for Contractors

Video Training Course Outline

Terminology

There are a few terms that will come up in this QuickBooks Online video series that you might want to know and understand before moving forward. These include Construction-Related Accounting Terms and QuickBooks Online Terms.

If you are an advanced accountant, or have worked in the construction industry for a long time, you can skip this video and go on to the next. This video is designed to help us all get on the same page and use the same terms.

Chart of Accounts

The Chart of Accounts is the backbone of your accounting system. If you don’t spend time getting your Chart of Accounts in QuickBooks in order, you won’t have good financial and job cost reporting. In this video, we will be teaching you what you need to know to set up your accounts so that you will have good, meaningful reports.

Opening Balances

The term opening balance is used to describe the balance in each of your accounts the day before you started using QuickBooks Online. In this video, you will learn how to enter the balances from your prior system into QuickBooks.

Customers & Projects

In the construction industry, a customer is the entity that pays you and a project is a specific scope of work. It is important to understand that a customer can have more than one project. Setting up a project properly is the core component of job costing in QuickBooks so this is not a section you will want to skip.

Vendors

A vendor is an entity that provides a good or a service to your business. For contractors, this includes your material suppliers and subcontractors. One important thing to keep in mind is that some of your vendors need to be treated differently for IRS reporting purposes. That means you need to think about your vendors in two groups: the first are vendors that you purchase materials from and the second are subcontractors, often called 1099 vendors. In this video, we will discuss those vendors that are material suppliers only. You can reference the video, “Subcontractors (1099 Vendors),” for information on subcontractors.

Subcontractors (1099 Vendors)

Businesses are required to report the total amount paid to each subcontractor each calendar year on IRS Form 1099. QuickBooks automatically tracks 1099-related payments if subcontractors are designated as eligible for a 1099. In this video, we will walk you through the steps to setup your 1099 vendors properly.

Products & Services

Although QuickBooks uses the term Product/Service throughout the program, you can think of items as the foundation for your job cost system. It is important to understand what the term “job cost” means because it is a significant topic and used frequently in the construction industry. View this video to learn more.

Classes

In the construction industry it is important to use classes to track cost categories. The categories include Labor, Materials, Subcontractors, Equipment Rental, and Other Project-Related Costs or LMSEO.

Billing Schedule

Unlike QuickBooks Desktop where you can job cost within the Estimate feature, you can only use the Estimate feature in QuickBooks Online for invoicing. You can import an Estimate but as of October 2019, there are no Estimate versus Actual Job Cost reports in QBO. However, we can use the QBO Estimate feature to set up a billing schedule. A billing schedule is created to help you invoice a job when a certain milestone is reached. Milestones are set up based on what you agreed to with your customer. In this video, we will show you how to customize and create a billing schedule estimate, as well as how to create an invoice from a billing schedule.

Time & Materials/Cost Plus Invoicing

A time and materials or T&M job is a term that describes how a contractor invoices a customer for a specific scope of work. It means the contractor will invoice the customer for all material, subcontractor, and labor costs, along with a percentage of overall costs for overhead and profit. Labor costs can be set at an agreed-upon rate per day, crew day, or month. Learn how to create these type of invoices in this video.

Recording Job Payments & Making Deposits

It is important to record job payments properly so that customer balances are accurate. In this video, you will learn how to record job payments and make bank deposits within QuickBooks Online.

Payables

In this video we are going to cover how to write checks, enter and pay bills, and enter credit card charges for both job-related and overhead expenses.

Employees

It’s easy to add, edit, or delete employees from the Workers Menu in QBO. View this video for setting up your employees with ease.

Payroll Settings

In this video, we will provide step-by-step instructions on how to set up the payroll settings for job labor, office wages, and officer’s salary (for S and C Corporations). We will also show you how to link each type of employee to the correct account in your Chart of Accounts to make sure your financial reports will be accurate. The accounts used in our examples are from our Chart of Accounts video. You will view the Payroll video to learn how to process payroll.

Payroll

In this video, we will show you how to enter a timesheet, process payroll, and issue payroll checks. The Workers Menu contains everything you need to manage your employees and process payroll. The ability to integrate payroll is one of QuickBooks’ best features. It captures all of your payroll expenses into your books, while also accurately transferring labor costs to your jobs when set up and entered correctly. If you follow our examples, setup will be easy and frustration-free.

Worker's Compensation

For a construction company, it is essential that workers’ compensation is set up, tracked, and processed correctly. If not executed properly, the consequences could be expensive. That is why we have a full video devoted to this one subject.

Job Cost Reports

https://player.vimeo.com/video/In this video, we’ll review the recommended tasks to be completed at the end of each month and the end of each fiscal year. QuickBooks Online doesn’t force you to close out any month or year, but wise business practices include following these procedures to ensure information you’ve entered into QuickBooks Online is accurate, and can’t be accidentally changed after you’ve closed a year. Month end is a good time to print reports and analyze how well your business is doing financially.

End of Month / End of Year

A vendor is an entity that provides a good or a service to your business. For contractors, this includes your material suppliers and subcontractors. One important thing to keep in mind is that some of your vendors need to be treated differently for IRS reporting purposes. That means you need to think about your vendors in two groups: the first are vendors that you purchase materials from and the second are subcontractors, often called 1099 vendors. In this video, we will discuss those vendors that are material suppliers only. You can reference the video, “Subcontractors (1099 Vendors),” for information on subcontractors.