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What can be your mistakes when befriending QuickBooks?

Construction accounting

To be a contractor, you should know how essential to have a plan or design before arriving at the construction site and begin your business. That way, you realize what you are facing. This principle should be applied when you use Quickbook Financial software for your accounting, payroll, and job costing.

The marketing message of QuickBook “easy to set up, easy to learn to use” could be a trap to many new users and makes them fall prey to the fantasy of doing – it – yourself without bookkeeper’s advice.

Therefore, when facing some of those situations below, make sure you have a bookkeeper to help you :

  1. Instead of using Item tabs when entering a job – related transaction, you use Expense/ Account tab.

  2. Believing that every separated contractor can use the exact same Chart of Account or Item List. In nature, it could be the same when you are in the same industry. However, do you want to supply the same work as well as the same quality as the others? I don’t think so.

  3. Not setting up your Item to tracks both Expenses and Income. It is essential to make sure you can use that item both in invoices for deposit and bills for expense

  4. Not using Estimate feature or change the estimate amount. This term represents your original contract amount, so be sure you have a good deal.

  5. Receiving customer payments incorrectly: Make sure you follow the process from Invoice – Receive payment – undeposited fund – bank account. Missing one step could cause troubles to your P & L report.

  6. Not reconciling Bank or Credit Card accounts. This would be the easiest point of view to ensure that you enter and use Quickbook properly

  7. Being fail to hire someone who can help you do book and learn how to use Quickbooks

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