QuickBooks Tip – Construction A/P – Tracking Subcontractor Insurance
A reader wrote to ask the following question:
Unlike some of the more costly construction specific software programs out there, QuickBooks wasn’t designed to prevent us from generating a check to a Vendor/Subcontractor whose General Liability or Worker’s Compensation insurance has expired.
The QuickBooks Premier (or Enterprise) Contractor edition does have a “section” in the Additional Info tab of the Vendor Record where you can enter an expiration date for both Worker’s Comp and General Liability insurance – and if you enter dates in these fields you will get a warning when using a vendor whose insurance has expired – however, it will not prevent you from writing the check, entering the bill, or creating a purchase order.
In other versions of QuickBooks Pro, Premier, or Enterprise; you can create “Custom Fields” to use in the Vendor record – but they will not produce even a warning.
There are several things that you can do – but none of them will automatically “warn” you before the Subcontractors insurance does expire OR prevent you from writing them a check after it has expired.
One thing that you can do is have your Vendors/Subcontractors request a Certificate of Insurance from their insurance company, listing you as a Certificate Holder. That way you receive a Certificate showing the policy period AND you would also be notified if the coverage was canceled or if it expired.
Even having access to this information directly from the Vendors insurance agent isn’t enough if you don’t have a policy and/or procedure in place for tracking this.
While QuickBooks won’t do anything automatically for you, it will provide you with tools (date tracking, report generation, letter creation, Reminders, and To Do Notes) to implement a good system for tracking this information.
Request our FREE eBook – “QuickBooks Tips & Techniques – Setting Up & Tracking Subcontractors Worker’s Comp Insurance”.
This FREE 13-page eBook will provide you with complete instructions for setting up and maintaining a system for tracking expiration dates of Subcontractors Worker’s Comp AND General Liability Insurance.
5 Responses to QuickBooks Tip – Construction A/P – Tracking Subcontractor Insurance
Leave a Reply
- The Great Debate – QuickBooks Desktop vs. QuickBooks Online
- Using Account Numbers in Your QuickBooks Chart of Accounts
- QuickBooks Creating a More Meaningful Payroll Expenses Section
- QuickBooks Tip - Child Support Garnishments
- Calculating & Displaying Fringe Benefits on a Certified Payroll Report
- How To Turn On and Use Manual Payroll in QuickBooks
- Create a QuickBooks Job Cost Report With Hours & Payroll Costs
- QuickBooks Payroll Tip - Tracking Employee Advances or Loans
- QuickBooks for Contractors Tip – Basics of Progress Invoicing
- QuickBooks Tip - Job Costing Starts With A Simple Item
- QuickBooks Tip-Creating a Functional Payroll Liabilities Section
- QuickBooks Tip: Important Facts About Items Left as Billable
- Welcome to the QuickBooks for contractors blog
- QuickBooks Tip-Handling Employee Reimbursements for Expenses
- QuickBooks Tip - Determing Cost of Goods Sold
- QuickBooks Tip - Handling Retainage
- QuickBooks 2015 Announced - Important System Requirements
- Straight from the IRS - Social Security Tax Reduced to 4.2%
- How to Calculate & Display Retainage on an AIA G-702/G-703
- Tips for Effectively Using QuickBooks Purchase Orders