The 3 Best Quickbooks Tips for Contractors!
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- čas přidán 5. 08. 2024
- Nobody becomes a contractor so they can use QuickBooks. These 3 critical areas will save you so many headaches when dealing with your books.
Video Link:
Search for accountants in your area to help with QuickBooks here: intuit.me/3kRoIl7
Content:
00:00 - Yay QuickBooks!
01:53 - Lump Sum Bid
09:03 - List Deposits as Liabilities!
16:01 - Items vs Expenses
I love the lump sum estimates on quickbooks. Some jobs it’s the only way to go. Matter of fact looking back I should have done it more than I have
That’s the only way we will submit bids unless it’s a unit price bid for a government agency.
In the film industry there was a recorder for the sound and a camera for the image. That clap bar would allow for exact alignment on the sound track to the film.
Just stumbled across your channel this morning as I was trying to separate the fixed cost job costs but keep them internal and this was exactly what I needed. I haven't checked out the rest of your channel but definitely will be taking a look soon such a great communicator appreciate the content
Awesome! Thanks so much!
This was awesome, being intimidated by the books side of being a contractor, this was very helpful and instructive
I used QuickBooks for both of my small businesses (disposal company and equipment rentals). We had a local expert come in and help us set it up then started using it. It was a fairly simple user-friendly system. I would highly recommend it for a small business operator with limited book-keeping experience.
Quicbooks is the easiest and most user friendly accounting software out there. Then add in all the youtube resources and its tough to beat for simplicity.
Awesome! Perfect! Thanks!
Happy to help!
More of this !
A clapperboard, also known as a slate or clapboard, is a tool used in filmmaking to synchronize audio and visual components during the production of a scene. It's a rectangular board with hinged sticks that clap together, creating a distinctive sound and visual cue. Here's what a clapperboard does and how it's used in filmmaking:
Synchronization: Filmmaking involves recording both video and audio separately and then combining them during post-production. The clapperboard's main purpose is to provide a clear, synchronized reference point for aligning the visual and audio elements accurately.
Scene and Take Identification: Each scene and take in a film production is assigned a unique slate or clapperboard identifier. The information written on the clapperboard typically includes the scene number, take number, and other relevant details. This identification helps the editing team organize and sort the footage during post-production.
Visual and Audio Cue: The sharp sound of the clapper sticks coming together is easily visible in both audio and video recordings. This "clap" creates a distinct waveform in audio recordings and a visible spike in video recordings, making it easy to match the exact moment of the clap in both media.
Sync Point: The moment the clapper sticks come together is used as a sync point during post-production. By aligning the visual cue of the clap (the visual of the sticks closing) with the audio cue of the clap (the sound of the sticks hitting each other), editors can sync the video and audio recordings accurately.
Marker for Editors: The visual information on the clapperboard, such as the scene and take numbers, serves as a visual marker for editors, making it easier to identify and organize footage during the editing process.
Error Correction: If a mistake occurs during filming, the clapperboard can be used to mark the point where the mistake happened. This allows for easier identification of problematic takes and reduces the need to review large amounts of footage.
Director and Cinematographer Communication: The clapperboard also serves as a communication tool on set. The clapper loader or second assistant cameraperson typically operates the clapperboard under the direction of the director or cinematographer. The clapperboard action signals the beginning of a take and helps the camera operator and sound recordist coordinate their actions.
In summary, a clapperboard is an essential tool in filmmaking that aids in synchronizing audio and visual elements, organizing footage, and providing valuable information for the editing process. It's a practical device that helps streamline the production and post-production processes, ensuring that the final film looks and sounds cohesive and professional.
For us it’s a fun prop 😂
Would love to a video on classes
This is why I talked my wife unto getting her cpa license before I started my business
That’s a good plan!
Cannot thank you enough for all your videos and info! I run a turnkey door and trim business in FL. Struggling to stay on top of pricing changes on items and inventory. Do you use QB for cost / price / and inventory Mgmt for inventory assemblies like gates and things you fabricate in kits or groups (for me it’s prehung doors, etc)
In our experience quickbooks inventory management has been a nightmare. We're lightspeed fans. www.lightspeedhq.com/
@@SuccessfulContractor thank you!
@@SuccessfulContractor - I also had difficulty using QB for inventory management.
how do you record items versus expenses when adding them from monthly uploadd bank statements?
How do you add a charge within your from another department to a job? We add $450 to a job if one of our own employees delivers a dumpster to a job. This covers labor and trips to the dump, but it's not an actual expense that is incurred (we might only pay $100 at the county dump).
Do you have a video on creating cost amounts for the line items? We are a new concrete contractor and have used quickbooks. I'm looking to find out how we can better job cost within the lump sum bid.
I don’t have a video on that.
TLDR: Accurate and detailed record-keeping in QuickBooks is crucial for construction contractors to effectively track costs, budgeting, job performance, and profitability.
00:00 💡 Contractors using QuickBooks should focus on accurate record-keeping, make adjustments in the contractor version, and present lump sum bids to customers while still tracking details for budgeting and job costing.
02:43 🛠 Create grouped items, number everything sequentially, and create detailed estimates in QuickBooks for efficient and accurate tracking of costs in construction contracting.
06:46 📊 Set up default cost categories in Quickbooks for accurate budgeting and tracking, and use group items to consolidate expenses for travel jobs.
08:57 📝 Track customer deposits as liabilities until work is started, create new items for deposits, and understand expense numbering for effective tracking.
11:33 💡 Differentiate between current and long-term liabilities, and properly account for customer deposits in Quickbooks to avoid distorting company profitability.
13:39 📊 Always have an estimate for each project, record income at the end of a project, and save a new balance sheet to accurately track job performance and avoid affecting the accuracy of your numbers.
15:59 🔧 Understanding the difference between items and expenses in Quickbooks is crucial for job costing in a construction business, classify expenses as overhead or items, record all job-related expenses to accurately track profitability, and consider getting help from an accountant to set up your system correctly.
19:45 📊 Use QuickBooks to set up effective accounting systems for accurate and understandable bookkeeping, essential for maintaining credibility with banks and investors.
Hello! Thank you for your excellent contributions for this specific item in QB. A query: If, for example, we have a contract with Mrs. Jones for $35,000 for remodeling. The work began in December 2021 with disbursements for project costs in that same month for $10,000. In January of the following year, costs of $5,000 are incurred, finishing the job that month (January 2022) and invoicing Mrs. Jones for the agreed $35,000. How to do in QB to recognize the income of 2021 and 2022? Or are the costs of $10,000 from December 2021 recorded in "Other Assets" on a temporary basis, to then recognize all the income of $35,000 in the following year (2022)?
Thanks in advance!
You should be doing progress billing even if not submitting to the owner. This will keep both income and expenses in the same period.
Items would be "cost of goods sold", correct? I have a restoration business, and I'm just learning QBD. A little overwhelming at first, but this helped.
Yes items are cost of goods sold and expenses are overhead
@@SuccessfulContractor Thanks. That makes sense.
A question...when you are adding an item that you purchased for a job, ex plumbing supply from home depot that cost 100, I understand that you add that as an item to be billed directly to the customer at a point in the future. But..what if you mark up items that you purchase, say instead of charging the customer 100 for the item, you charge them 110? how do you reconcile that on QB? Thank you!!!!
Yes you can do that by checking the box at the end that says “billable“. Otherwise all of your markup is done during the estimating process when you provide them with a bid. Marking something billable would be used if there are change orders or unforeseen circumstances that you want to build a customer for at a later date that may not have been included in the original bid.
Curious, are you cash or accrual? If Cash basis, do you create a new 'construction in progress' account for each year? Do you make journal entries after each job to make your 'construction in progress' account balance out? I've read I need to make journal entries after each job to do that.
We are on accrual for banking purposes, and our own internal accounting but cash basis for taxes. I believe there are journal entries that need to be done. However, we give our accountant a WIP and he makes those corrections. I can tell you we do not do it by job. That would be very difficult for us to do and quite time consuming.
How do I input a deposit from a customers bank to our checking that has items split ? Not sure if I asked that correctly. It doesn’t show on my p & l under construction income. What am I doing wrong?
I’m not sure that I understand your question.
I followed your instruction to the letter by creating the sales receipt that puts the money in customer deposits. I'm struggling with moving the money back out. Adding the negative customer deposit to the invoice only relieves the A/R invoice and moves the money out of the customer deposit liability account. This doesn't move the money into an income account on the P&L. How are you showing the income since we're not "receiving payment" on the invoice?
Im guessing you missed one small step in the setup. Your accountant should be able to assist you with the fix. It’s really difficult to know without seeing how you have it set up.
I pay net profits in various counties. Is there a way to set them up so that you can pull those reports by county? I assuming you have to classify them by project or customer(I have the construction edition), but I can't figure it out and it's driving me crazy!!
I wish I could help you out with that is above my ability. I would get with a QuickBooks specialist or an accounting firm that is very knowledgeable and they may be able to point you in the right direction
There’s no “a” at the end of masonry! Ha, good video and good info.
Funny. Those were default categories from QuickBooks. 😬
I have an office furniture install business and I'm trying to set up my books on QBD... ugh... doing my best to figure this "accounting" stuff out... lol... I think... No. I know I need some guidance but we are so new and can't afford an accountant yet. Do you have any advice recommendations or cheat sheets?? Thanks!!
My best advice is to keep it simple and use the categories they set up for you and adjust them as necessary. Anytime you need to change something there is some very helpful videos on CZcams.
You can also use CZcams as a resource for basic accounting do’s and don’ts
Are you using desktop, I have online does it works the same
We are on desktop and I am not certain that online works the same. Online will not do job costing I know.
So the software you are using is Quickbooks for Contractors? Is it Desktop or Online?
It’s QuickBooks Contractor desktop. Online is too watered down.
I just wish QuickBooks had a way to record that a particular customer has already made a 50% deposit. That would really cut down on the possibility of mistakes when sending that customer the final invoice.
If I have a bunch of different deposits in the "Customer Deposits" account, I haven't found a quick and easy way to know which of that money belongs to a particular customer. I feel like QuickBooks should just "know" that a particular customer has already made a deposit when I create that final invoice.
Either I'm missing something, or QuickBooks is deficient in this department.
The way we do it we can see that customer has a credit(deposit) so you may want to revisit the way you have things set up. However, it will not warn us that they have a credit before we bill them. This isn’t an issue for us because we know every customer is required to pay a deposit before starting their job. It’s also easy to see in their account if we quickly review it.
@@SuccessfulContractor Thanks for feedback!