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****Editors Note, please pay close attention to the article below. I was in group #2, I knew I needed a more robust feature list than the standard QB Pro. However, (this is hard to admit) I never knew how to fully use the job costing and estimate modules. So although I knew better then some I did not know how to properly enter estimates so they would flow through the system so I could pull valuable data out. I was basically flying half blind for the better part of a decade. Having your system set up correctly from the beginning can save you from some of the pitfalls we ran into in our business and if you can’t completely avoid them you can certain make more prudent decisions.
This Article Will Focus On some helping Plumbing Contractors understand some of the main differences between the different versions of QuickBooks.
#1 QuickBooks Pro – Works well for Plumbing Contractors operating as Sole Proprietor with annual sales up to $100,000 who need
to keep track of basic income and expenses. You can set it up quick and use it like a check register. When you spend money put it into the check register as an expense and when you deposit money put it in as income. When it is time to file your annual tax return print a Profit & Loss Report and Balance Sheet and give it to your tax preparer.
This method is the least expensive in the short run and does not require a lot of contractors bookkeeping services skill. Be sure you input all of your expenses properly so your Plumbing Company does not show a massive profit which could cost you a lot more in income tax than you will save by doing it yourself.
#2 QuickBooks Mac – Is similar to QuickBooks Pro and we can assist you with QuickBooks Setup, Clean-Up and just about everything else except Job Costing. If that is something you need perhaps consider QuickBooks windows based.
We have a solution for Plumbing Contractors and other Contractors if you want to access QuickBooks Pro, Premier or Enterprise on the web using your Mac. Click here for more.
#2 QuickBooks Premier Contractor – Works well for Plumbing Contractors operating as a corporation, Sub-S or LLC with annual sales $100,000+ because they need more in depth Financial Reports, Job Costing Reports, Work-In-Progress (W.I.P.), Schedule
of Values, complex Payment Applications, Job Deposits, Progress Payments and Change Orders. Most Plumbing Contractors in this income bracket are concerned about reducing the amount of income tax they would otherwise pay if they operated as a Sole Proprietor. Having a corporation can help protect their personal assets, home, car, savings and other investments.
This method is more expensive in the short run and if you are operating your Plumbing Company as a corporation because it requires a substantial amount of skill and expertise in contractors bookkeeping services and the best way to do it is subcontracting it out to a qualified Contractors Bookkeeping Services firm who can help capture and input your Cost of Goods Sold and Expenses properly so that your Plumbing company reflects the right amount of profit and you pay the right amount of taxes.
#3 QuickBooks Enterprise Contractor – Works well for Plumbing Contractors operating as a corporation, Sub-S or LLC with annual sales $10M+ because they have a larger volume of transactions and multiple projects which requires more extensive Financial Reports, Earned Value Reports, Underbilling Reports, Overbilling Reports, Job Costing Reports, Work-In-Progress (W.I.P.), Schedule of Values, complex Payment Applications, Job Deposits, Progress Payments and Change Orders and a whole lot more.
If your Plumbing Company is in this bracket you really should have a professional qualified construction accounting staff with all of the proper tools and equipment and not outsource it.
#4 QuickBooks Online – In my opinion should never be used for Plumbing Contractors or any other Construction Contractors because of the differences between regular accounting and construction accounting.
A Lot Of Contractors Using QuickBooks Online have come to us because they could not understand where they were making
money and losing it. They could not get financing, bonding, lines of credit and other issues due to the lack of Job Costing Reports and other construction reports. We have a solution for Plumbing Contractors and other Contractors who want to access QuickBooks Pro, Premier or Enterprise on the internet. Click here for more.
We have a process for copying the data from your QuickBooks Online into QuickBooks Pro, Premier or Enterprise. Next we fix QuickBooks Setup errors and QuickBooks entry errors. Then we can provide you with a copy of it on our secure web portal, CD, DVD, portable flash drive and a number of other ways. We work with Plumbing Contractors and other Contractors all across the U.S.A.
Thinking About Outsourcing Your Contractors Bookkeeping Services?
We Are QuickBooks Experts Specializing In Construction Bookkeeping Services
About The Author:
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington, www.FastEasyAccounting.Com He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Plumbing Contractor, General Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist, Bill.Com Guru and Tsheets ProAdvisor. Follow Randal on Google+
I leave you with this heartfelt blessing – “May you always know that all of your challenges and opportunities are blessings from the Universe to help you increase your wisdom and understanding so that you and everyone you mentor, guide and call friend can benefit from your wise council.”
Randal L. DeHart, PMP, QPA