AccountingPRO ™ QuickBooks Job-Cost & Construction Template

No, AccountingPRO™ is a “done-for-you” QuickBooks construction template (company file) that includes all of the lists and reports shown above.

QuickBooks desktop software (QuickBooks Pro, Premier, or Enterprise) was designed by Intuit to be able to create and open an unlimited number of QuickBooks company files.  When you purchase the AccountingPRO™ company file, you copy the file to your computer and open it with your QuickBooks software. Simple, easy.

When I started my accounting firm more than 20 years ago (in 1994), I decided that I wanted to specialize within the residential construction industry using QuickBooks as my accounting “tool” of choice. For an accounting program, QuickBooks was relatively user-friendly. At the same time it also provided flexibility and powerful job-costing capabilities.

But there were some problems.

QuickBooks is a very broad-based generic software.

1. With Intuit promoting the concept of “You can do your own accounting with QuickBooks. All you need to know is how to write a check”, many businesses thought they could simply jump into doing their own accounting without any in-depth accounting training.
2. Any type of accounting software requires users to learn its features, flows, and intricacies.
3. Job-costing, even for trained, dyed-in-the-wool accountants, can be a challenge.
4. The construction industry has relatively complex accounting requirements that vary depending on specific types of construction.
5. The “construction-industry-specific” Chart of Accounts and Item Lists provided with QuickBooks (even within the Premier Contractor version of the program) were nearly always inadequate to meet the needs of the clients I was working with. I consistently found that their “hair-pulling” frustration and reporting issues typically STARTED with these prior, underlying “structural set up” problems.

Yes, the problems could be fixed. BUT you have to know what you’re doing, and what the structure SHOULD look like when you’re done “remodeling” the existing file.

Thus, the fix-it process was time-consuming and costly.

In 2000, in cooperation with the National Association of Home Builders (NAHB), I wrote a book (Accounting With QuickBooks for Builders & Remodelers – 300+ pp). It included extensive information about how to manually create proper setup lists in QuickBooks.

As a result, because manually creating the proper set up took many, many hours, and was prone to user error, my readers’ questions quickly became “Why do I have to do all of this work? Can’t you just do it for me?”

So I decided that a solution to both of these BIG issues (fix-the-problem-file, and set-up-everything manually), would be to develop a QuickBooks construction template. A “model” company file that businesses could use to get a fresh start.

The goal was to create a QuickBooks construction template (company file) that would relieve the pain of confusing, frustrating, inadequate, and inaccurate construction reports. I decided to create a solution that would help both new and existing business owners achieve logical, consistent, and meaningful reports.

And that’s why, and how, AccountingPRO™ came into the world!

I totally understand. Most companies, regardless of size, only need to use a PORTION of the accounts, and only CERTAIN Items.

But each company’s needs are different, so I’ve built in most everything that any residential (and most light commercial) construction companies could potentially need. All you’ll need to do is to “hide” (inactivate) accounts or job-cost items that you DON’T want to use at this time (a simple mouse-click in QuickBooks).

Then, if you find that you need to use one of the “hidden” accounts or items in the future, simply re-activate it.

This gives your accounting system both flexibility and the ability to “scale” for future growth or expansion.

Yes, as you move through your business life, you’ll find that various organizations may provide “suggested” listings for Charts of Accounts, job-cost tracking codes, etc. And they may require you to periodically report financial activities to them in specific formats.

HOWEVER here’s my philosophy. See if you agree:

“What is absolutely MOST important is that you end up with a system that provides you with the amount and type of information that is logical, that you and your staff can understand, and that you regularly use to manage and run your company more profitably and effectively.”

“Your business management information needs come first. When it comes to reporting to outside agencies, if you have a logical, clear, ethical (non-fraudulent), and clean system, it’s easy to find the numbers and place them on the forms that they require.”

When I first created AccountingPRO™, I started with the NAHB Chart of Accounts. For job-cost codes, I reviewed the NAHB list as well as several other estimating systems in order to compile a very comprehensive (yet reasonable) set of job-cost/job-stage elements. Then we sorted the job-cost codes into “construction order”, and created a numbering system that will display results in construction-progress order.

I’ve used these accounts and job-cost codes with many, many clients. Over time, both have been extensively reviewed and upgraded to work in the best ways for them. I believe that (for QuickBooks users) our revised Chart of Accounts and Job-Codes (Item List) provides results that exceed the original.

Yes, simply edit and change to your desired name or number.

Yes, you can do that. QuickBooks makes it very easy to add accounts and items. For consistency, you will likely want to use existing accounts, items, and numbering systems as your “model” for additions or changes.

Yes. The Chart of Accounts and Item List have been designed to handle any of the above types of construction situations. How income and costs are recognized for various types of construction can vary, and may require specific types of adjustments at the end of monthly or quarterly accounting periods. My documentation helps to guide you through those specifics.

Yes. Give us a call at 734-544-7620 (9-5 Eastern, M-F) for reduced pricing on additional copies.

Unfortunately QuickBooks does not allow the merging of files. Your AccountingPRO™ file will provide you with a fresh “clean start”company  file. The good news is that you can leave old, bad structural setups behind! That said, you will still want to post certain account balances from your prior file as “beginning balances” in your new AccountingPRO™ file. I have provided full instructions regarding how to do this.

Although mid-year changes mean that you will need to enter somewhat more year-to-date detail into your new file, one advantage of a mid-year transition is that you aren’t already in the throes of year-end work. (January and February can be stressful accounting months for many companies!) A mid-year switch allows greater opportunity for you to plan, manage, train, and and implement the change in a less pressured environment.

Many companies have never explored or used many of QuickBooks’ advanced job-costing features. We have designed the AccountingPRO™ QuickBooks construction template to take full advantage of those features, so it is likely that you will find a variety of differences in the way that you enter transactions and create reports. You’ll definitely want to review the User’s Guide and other documentation to learn how to gain the full benefits of your new system!

If you’re a “visual learner” I’ve created an extensive series of online recorded QuickBooks Construction Accounting Training Classes.

Other people may prefer to have an Info Plus Accounting consultant guide them through the transition. In that case, you can contact our office at 734-544-7620 to discuss consulting options.

Well, you could start with waving a magic wand over your current set of books! (LOL) If you’ve tried that and it doesn’t work, you’re not alone. Give us a call at 734-544-7620 (9-5 Eastern, M-F) to discuss and we can provide some ideas…

If you're currently in QBO and are thinking of switching to QuickBooks Desktop, the following chart should point you in the right direction: QBO to QBD to AccountingPRO