In this transcript from a video by Steven J Wick & Associates PC, Steve Wick discusses how QuickBooks can be an effective accounting tool for construction companies when it is properly configured and consistently maintained. He explains the importance of correct job costing, tracking labor and materials, allocating overhead, and monitoring bids to protect profitability. A key theme throughout the discussion is QuickBooks setup for contractors, emphasizing that proper system configuration is essential for accurate financial reporting and job tracking.

To learn more about optimizing your accounting system and avoiding costly job costing errors, check out our detailed guide on QuickBooks setup for contractors.

This video is presented by Steve Wick of Steven J Wick & Associates PC in Fort Collins and is for informational purposes only; it does not constitute legal or tax advice, and you should contact a qualified CPA regarding your specific situation.

00:00:08

[Music] i would say yes it really is a good tool to track expenses and revenues and billing and all of those types of accounting functions it has some really good tools and a lot of things that small businesses use now quickbooks or quickbooks online there can’t be all things for all companies because quickbooks is built to be for pretty much any any industry that’s out there for just general accounting functions [Music] most of the time it really is a question of is it set up correctly to begin with

00:00:54

and therefore being used correctly and not kind of haphazard if you don’t have it set up correctly and don’t understand the functionality of the software it’s going to give you similar results sometimes so if you want it just to track your checking account or maybe your receivables if you want to do more job costing which is really important in the construction industry and following your jobs [Music] it can work with all types that i can think of sometimes with general contractors which i have general

00:01:36

contractors that have been successful with it virtually every subcontractor that i’ve ever really worked with can be pretty successful with with quickbooks or quickbooks online but you know electrician if they’re wiring houses they might be on a job a day or one a week something like that i have two or three guys per job or just one and so tracking all those things through a lot of electricians you really need to do it correctly it depends on how big they are a guy that is just a one-man shop or somebody that has maybe

00:02:14

one or two crews he can keep that stuff in his head however when you get to five six eight crews it gets a lot more difficult to track and keep up with where you’re at by job and so there’s scope creep and all those things that happens [Music] i would say it’s still a really good tool for them [Music] here’s the pieces it’s really understanding is quickbooks again set up correctly to capture the overheads and costs by jobs do you have the system set up correctly to be able to do that

00:03:00

and be able to look at jobs on an ongoing basis and make sure that you know you’re making your money [Music] so there’s two pieces generally to every job is the materials and then the labor and of course then there’s the overhead that you know overhead is things like your office and your office personnel or general insurances or things like that that are not specifically to that job [Music] specifically to quickbooks you just got to make sure that your costing is correct on your estimating process

00:03:43

okay and you have to constantly update it which takes time of course you know your labors right now you know who’s doing the work is it your cheap guy or is it an expensive guy all those things kind of play into it and understanding that and making sure that your bids are correct and time limited so that when you get these price cost changes hopefully adjust your bids accordingly [Music] bye you

QuickBooks Setup for Contractors

QuickBooks setup for contractors requires more than basic bookkeeping — it demands accurate job costing, proper overhead allocation, consistent labor tracking, and disciplined bid management. When configured correctly, QuickBooks can help contractors monitor profitability by job, manage multiple crews, and avoid costly scope creep. However, improper setup or inconsistent use can lead to inaccurate reporting and lost profit. For guidance tailored to your construction business, consult with a qualified CPA experienced in contractor accounting systems.