How do I set up job costing for my construction company in QuickBooks?

You'll need QuickBooks Online Plus or Advanced to access the Projects feature. Create a project for each job, enter a budget from your estimate, and code every expense, labor hour, and invoice to that project as work happens.

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What is progress billing and how does it work for general contractors?

Progress billing means invoicing the owner in stages based on how much of the work you've completed, not at project end. Each pay application breaks down work completed to date, retainage withheld, and the net amount due for that period.

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How do contractors account for retainage in their books?

Track retainage in a separate balance sheet account instead of regular AR. When you bill with retention withheld, split the entry between AR for the payable portion and Retention Receivable for the withheld amount. Release the retention to AR when the project closes out.

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What bookkeeping records do I need for a California contractor's license?

CSLB requires financial statements showing sufficient working capital, including a balance sheet, income statement, and supporting documentation. Most license classifications require at least $2,500 in working capital, with LLCs needing $100,000.

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How should a general contractor track subcontractor costs by project?

Every sub payment needs to be coded to a specific job and tracked against the original bid. Monitor variances throughout the project to catch overruns early, and collect W-9s upfront so 1099s aren't a scramble in January.

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Do I need a bookkeeper if I'm a small remodeling contractor in Pasadena?

Even a one or two-person remodeling operation benefits from organized books. Job costing, permit fees, material purchases, and sub payments add up fast, and without tracking them per project you won't know which jobs actually make money.

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