Questions
Answers to common questions about bookkeeping, accounting, and managing the financial side of your small business.
How do I set up job costing for my construction business?
Job costing tracks every cost against the specific project that incurred it so you know which jobs make money. Setup requires defining cost categories, configuring your accounting software for project tracking, and establishing consistent processes for capturing labor and expenses.
Read answerWhat is the best bookkeeping software for contractors?
For most small to mid-size contractors, QuickBooks Online is the standard. It handles job costing, integrates with common tools, and every accountant knows how to work with it. The key is setting it up correctly for contractor needs.
Read answerHow do I track labor costs by project in QuickBooks?
Enable projects in QuickBooks, set up time tracking that assigns hours to each project, and connect it to payroll so hours convert to actual labor costs. The setup is straightforward but requires daily discipline from your crew.
Read answerWhy are my construction job estimates always off?
Your estimates are probably off because you don't have accurate data on what past jobs actually cost. Without tracking actuals against estimates, you keep repeating the same mistakes on every bid.
Read answerHow do I know if a construction project is profitable?
A project is profitable when revenue exceeds all costs including allocated overhead. Most contractors undercount costs by missing their own time, vehicle use, and overhead allocation, making jobs look more profitable than they are.
Read answerWhat expenses should contractors track for each job?
Track labor hours, materials, subcontractor invoices, equipment costs, and permits for every job. Each expense needs a job code before it hits your books. Without this discipline, you won't know which projects actually make money.
Read answer
