Entering Bills or Checks in QuickBooks – Items vs. Expenses

Job Costing Tips, Vendors & Accounts Payable
  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. 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. Because you do you a choice to use an Items or Expense tab when entering transactions in QuickBooks; many people…
Read More

Estimates vs. Purchase Orders: What’s the difference?

Be A Better Bookkeeper, Customers & Accounts Receivable, Job Costing Tips, QuickBooks Setup & Cleanup, Vendors & Accounts Payable
  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.  I often see a lot of confusion on the QuickBooks forums about Estimates and Purchase Orders, what the differences are, and when you should use each one. An Estimate, otherwise known as a Bid, Proposal, Quote or perhaps even a Schedule of Values in the construction industry, is a detailed breakdown of work or tasks that you will perform in order to complete a project for a specific customer or a specific job and what you will charge them to do it. A Purchase Order, on the other hand is normally something that you issue for materials or the services…
Read More

QuickBooks Weekly Timesheet – Service vs. Payroll Item

Job Costing Tips, Payroll Tips
The QuickBooks Weekly Timesheet can cause a lot of confusion for users who are implementing employee time tracking for the first time, mainly because the timesheet contains both a Service Item and a Payroll Item.  This article will explain what each column is used for and some common pitfalls that can happen. Job costing and employee time tracking are important aspects of many businesses - not just construction businesses.  However, when you initially set up timetracking there are many things that can cause confusion. About Service Items: The Service Item column represents the type of work that is being performed and allows you to select/enter/choose the name of the service item/cost code from your Item List that you want to use when your charge/bill your customer for this work -…
Read More

Creating Estimates In Excel vs. QuickBooks – What’s the Difference?

Customers & Accounts Receivable, Job Costing Tips, QuickBooks Setup & Cleanup
If you use QuickBooks for your accounting and you create your Estimates in Excel instead of within QuickBooks you loose out on job costing capabilities and so much more! I often see and hear comments such as this as I browse the web or talk with potential customers for our software: Right now we are using QuickBooks Contractor. It is ok for our accounting software but we are looking for something that works as an overall system for our office - CRM, estimating, job costing, proposals, work tickets and most importantly easy for my guys to use.  Right now we are using Excel for Estimates and invoices. When I see and hear comments like this I get so confused - because QuickBooks does allow you to create Estimates, Proposals, and…
Read More