Question: Currently, I use flooring specific software that is very dated. My biggest issue -- I need to make sure QuickBooks can handle the ability to save a job template. For example, apartment manager Redwood has various complexes, one of which is Corbin Commons, and within this complex there are five different apartment sizes. Each take a different amount of carpet/pad/labor. I now have these set up, so that when a job is called in, I can go to templates and pick the one I need and start a job. The template stays for next time. Is this available in QuickBooks?  Another thing I currently do is print out work order for mechanic to take with him that shows material and what we are paying him for this specific job. I looked at estimates and it only shows what we would charge customers. In the trial version, they don’t let me use sales orders, so I don’t know if that is different. What is difference between estimates and sales orders? Which do you think would work best for my situation?


Answer:
You can memorize estimates (quotes/bids) and sales orders (work orders) in QuickBooks, and then use them to generate purchase orders and/or invoices.  If you have change orders or need to track expiration dates for subcontractor worker’s comp and general liability, I recommend the Contractor’s edition.

QuickBooks Estimates can include both your expected expenses and your expected revenue.  Expenses go in the Estimate column, revenue goes in the Revenue column. You can use the Mark-up column to help you determine how much to charge based on your expected expenses (using either a % or a flat dollar amount) or just leave it blank and QuickBooks will calculate it for you based on the Estimate and Revenue you enter.

However, it’s best to use purchase orders for vendors/subcontractors, and one of the things I love about QuickBooks Premier and Enterprise is that you can automatically turn an estimate into both a purchase order, a sales order or an invoice (Pro only allows invoice creation).  

In order for construction companies to get the most out of QuickBooks, you want to start with a detailed estimate including both expenses and revenue.  Once accepted by the client, create a sales order as well as purchase orders for your various suppliers and subcontractors.  Then turn the purchase orders into bills and the sales order into an invoice.  The most important thing to keep in mind is to always use the Item tab instead of the Expense tab when entering bills or writing checks.

Even though it’s more expensive than Pro, I recommend Premier or Enterprise for Contractors because of:

1.    Sales orders (not available in Pro)
2.    Better handling of estimates
3.    Better tracking of change orders
4.    Better tracking of the expiration dates of subcontractor’s workers comp and general liability insurance
5.    Additional job costing reports

Regardless of which version you choose, you really should get a few hours of training with a consultant who’s experienced with QuickBooks for Contractors.  A good test question is “How do I enter job costs on a journal entry?”  If their answer includes actually using a journal entry, they have no idea how to work with the Contractors Edition, because you can’t enter an Item on a journal entry.  

We do offer remote training, using your QuickBooks file and your data, if you can’t find anyone locally. 

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Written by Ruth Perryman, CMA, CFE, CFM, MBA, DPA (ABD)

Ruth is the president of The QB Specialists, an Intuit Solutions Provider that has helped thousands of businesses throughout the United States, Canada and even the Caribbean get the most out of QuickBooks since 1996. Ruth has over 20 years of industry experience, including 5 years as a Chief Financial Officer. She is an Advanced Certified QuickBooks ProAdvisor and a member of Intuit’s Trainer/Writer Network. She is also certified in QuickBooks Point of Sale and Enterprise.

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