Retainage Payable and Receivable – What’s the Difference?

Retainage Payable and Receivable – What’s the Difference?

Customers & Accounts Receivable, QuickBooks Setup & Cleanup, Vendors & Accounts Payable
Retainage or retention, in the construction industry, is an agreed upon portion of the contract price that is deliberately withheld until the work is substantially complete to assure that the contractor or subcontractor will satisfy its obligations and complete a construction project.  Retainage is often confusing all by itself, and then there is also a lot of very confusing terminology as well.  But there is a difference between Retainage Receivable and Retainage Payable. 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).…
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QuickBooks Payroll Tip-Setting Up General Liability Insurance Tracking

Payroll Tips, QuickBooks Setup & Cleanup
QuickBooks Payroll, when properly set up, is capable of tracking and including the cost of your General Liability Insurance; as well as many of the other things that costly construction software does automatically - with a little more effort on your part and without the big price tag. Tracking General Liability Insurance, when it is based on gross payroll, and getting those costs into Job Costing Reports is vital for many businesses, especially the construction industry. NOTE: The best time to implement this procedure is when your General Liability Insurance Policy period starts. The following instructions will allow you to track your General Liability Insurance costs when it is based on gross payroll and get those costs into your job costing reports without making complex journal entries.  It will also…
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Starting a New QuickBooks File? Benefits of the EasyStep Interview

QuickBooks Setup & Cleanup
When you use the EasyStep Interview to create a new QuickBooks company file, you will be asked questions about the type of business you own as it walks you through the process of setting up your business in QuickBooks.  Your answers will be used to help you get started quickly , by setting up the appropriate accounts and lists.  It will take you about 30 minutes to go through the EasyStep Interview. Creating a new company file in QuickBooks is easy and you can access the new file wizard in many ways. From the File menu, choose New Company If you have been working in a sample company file, click the Start your new company file now button on the upper right corner of the Home page. From the No…
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QuickBooks 2011 – New Balance Sheet by Class Report – Part 5

QuickBooks 2011 - What's New?, Reports
The Balance Sheet by Class Report was first introduced with QuickBooks 2011, however, it is also available in QuickBooks 2012, 2013, and 2014; has specific requirements for handling many or our normal day-to-day transactions. it gives users the option of selecting “Classes” (fund, location, profit center, or other category) as their column/class grouping. Over the last several days, I’ve been discussing and sharing some information about how we all will need to change our data entry procedures in order to utilize the New Balance Sheet by Class Report available in QuickBooks 2011. In previous articles: QuickBooks 2011 – New Balance Sheet by Class Report – Part 1, we touched briefly on the fact that transactions will have to be entered in a very specific manner and there are many data…
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QuickBooks 2011 – New Balance Sheet by Class Report – Part 4

QuickBooks 2011 - What's New?, Reports
The Balance Sheet by Class Report was first introduced with QuickBooks 2011, however, it is also available in QuickBooks 2012, 2013, and 2014; has specific requirements for handling many or our normal day-to-day transactions; it gives users the option of selecting “Classes” (fund, location, profit center, or other category) as their column/class grouping. Over the last several days, I've been discussing and sharing some information about the limitations of the New Balance Sheet by Class Report available in QuickBooks 2011 which may make using this report unsuitable for some users. In previous articles: QuickBooks 2011 – New Balance Sheet by Class Report – Part 1, we touched briefly on the fact that transactions will have to be entered in a very specific manner and there are many data entry transactions…
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QuickBooks Tip-Chart of Accounts, Your CPA & Your Tax Return

QuickBooks Setup & Cleanup
Many companies fail to set up their charts of accounts correctly in QuickBooks.  Over the years I have seen charts of accountants that look like a collage of accounts in helter skelter format without any logical order, containing duplicate if not triplicate accounts, inconsistent protocols, and even inappropriate, if not undecipherable, names. At tax time, when their CPA receives either a backup or Accountants copy of the file like OR reports that have been created from the file, it becomes an even bigger mess.  The trial balance that must be created by the tax preparer requires countless hours of reclassifications and groupings to mesh and coordinate the amounts within the file to the classifications required on tax returns and financial statements.  Business owners then bear the costs of needless and…
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