Vendors & Accounts Payable
QuickBooks Vendors, Subcontractors, and Accounts Payable tips & techniques.
Using Purchase Orders in QuickBooks can help you to ensure that your Subcontractors or Material Suppliers do not charge you more than what they originally quoted you for a price and the Open Purchase Order by Job Report can help you to see how much in committed costs there are left on your jobs. Both very valuable pieces of information.
Having said that, you do have to use the QuickBooks Purchase Order function correctly and there are several pitfalls that can happen, that you will want to avoid.
This post provides you with tips for effectively using QuickBooks Purchase Orders as well as entering Bills against those Purchase Orders. Continue reading
We have one vendor that we buy the majority of our materials from, so we have a lot of different Purchase Orders for that vendor. My problem is, a lot of times our Subcontractors or Vendors don’t reference our Purchase Order number on their invoices, only the job – so I have a hard time figuring out which of the Purchase Orders the bill belongs to. I’ve created Excel spreadsheets for each job which lists all of the Vendors we’ve created Purchase Orders for, the Purchase Order Number, cost/Item code, the amount of the PO, when we received the bill from the Vendor, and whether or not the PO was received in full or not. This worked fairly well, for awhile, but now it’s driving me insane! Is there anyway that I can get rid of my spreadsheets and track the job and cost codes for my Purchase Orders in QuickBooks? Continue reading
The end of the year is fast approaching and we are all getting geared up to issued 1099's to Vendors and W-2's to employees. Making sure that we issue 1099's to the appropriate Vendors is a task that we all need to pay attention to. This article talks about several reports that you can create in QuickBooks that will help you to make sure that your 1099 information is up to date by performing a self-audit of your records. Continue reading
With the end of the year quickly coming – I thought it might be a good time to discuss how you can track Vendor/Subcontractor 1099 information in QuickBooks. While actually issuing 1099’s is only a once a year event – if you plan and prepare all year long you’ll be in good shape. Thankfully QuickBooks provides with the tools and ability to track 1099 payments to subcontractors as well as the ability to generate these forms at year end - but if you don't know about (or use) these tools; well you are in for a tough time. Continue reading
Quite often, especially in the construction industry, an employee will purchase tools for their own personal use; either using a company credit card or through a tool vendor account. While most employers don't mind an occasional purchase such as this, it's important for you (as the bookkeeper) to track this information and make sure that the employee actually pays the company back for these purchases. This blog post will provide you with instructions on how to track this in QuickBooks and provide tips for handling this situation if you use an outside payroll service. Continue reading
It's a common practice among business owners to provide their employees with company credit cards. In some cases it really makes sense - but caution should be used if this is a common practice in your business.
It is vital to for a business owner to review credit card statements and other bills for personal charges and collect the money from the staff member as soon as possible. If the employee cannot pay the monies back by cash or check right away, a receivable should be created for the employee until the charges can be deducted from their paycheck. Continue reading
To put it as simply as possible:
- Retainage Receivable is money that is owed to you, while
- Retainage Payable is money that you owe to someone else
Usually, if you are a General Contractor you will need to track both Retainage Receivable (for money due to your company) and Retainage Payable (money you owe to your Subcontractors). Continue reading
Your business spends money on a wide variety of things - employee payroll, payroll taxes, office supplies (such as paper and envelopes), utility bills, things that you purchase to resell to others, and goods or services from others are just a few examples. In essence every penny that your business spends is an expense to your business - but how you record the purchase in QuickBooks does make a difference. When entering bills, checks, or even credit card purchases in QuickBooks you have the choice to use an Items or Expenses tab - choosing the Items vs. Expenses tab will depend on what the money being spent was for. Continue reading
Estimates and Purchase Orders can be created using QuickBooks. Many people want to know what the difference between the two are and when it is appropriate to use them. Continue reading
In QuickBooks it's possible to create an Estimate and then from the Estimate create a Purchase Order, Sales Order, Invoice or even a letter - but there are some drawbacks to these features as noted in the question below, submitted by a reader. Continue reading
A contractor will receive a joint check from a General Contractor to pay their subcontractors or material suppliers. Learn how to receive & apply joint checks. Continue reading
A QuickBooks tip about issuing joint checks to a subcontractor and a lower tier subcontractor or material supplier for payment for work completed on a construction project. Continue reading
A QuickBooks Tip for creating Lien Waivers, Releases, and other Contract Documents from within the software using the Letters function. Continue reading
It's tough to choose just 10 and even tougher to read everything that is of interest- if I did ....... well I wouldn't ever get anything else done! Continue reading
There are two possible ways to track retainage that you owe to your subcontractors; one method utilizes a Sub-Account of Accounts Payable, called Retainage Payable, and the other method utilizes an Other Liability Account, called Retainage Due to Subcontractors. Please review the setup and use of both methods, and choose whichever one seems more appropriate for your use. Continue reading