In this article, we take a look at some of the functionality and advantages of QuickBooks for construction. In the previous installment of this article we explored three construction accounting software packages offered by QuickBooks.

Ruth Perryman, president of The QB Specialists, said her clients, most of which use QuickBooks Premiere or QuickBooks Enterprise, are interested in a high level of detail.

“As they do job costing, they want to know exactly how much profit they are making, and they want to know how well they are doing versus the [cost] estimate on a per-job basis,” she said. “They enter how much they estimated they would make and QuickBooks keeps track of all costs associated with that job. Then, whenever they want, they pull up a report that shows what the estimate was, what was actually spent, and the difference.”

Why use QuickBooks for construction? Let me count the ways

Perryman said contractors who have switched from other accounting software to QuickBooks software list a number of reasons for their conversions.

Topping the list is the complaint that their previous accounting software allowed mistakes too easily and then made it difficult to correct the mistakes. The high cost of annual maintenance fees was another factor, Perryman noted.

Users also found that exporting data from other accounting software packages could be difficult. Perryman said some contractors like QuickBooks' tight integration with Microsoft Office, as that allows them to transfer data between the two. Since QuickBooks’ fields can be merged into Word documents, for example, it is easy to include data that is particular to the customer when sending out correspondence.

Another issue that drove defections was problems with getting staff up to speed. Perryman's clients comment on the ease of using QuickBooks, even for employees who don’t have high computer skill levels. She said there is less need to invest in additional training because of the software’s extensive help and tutorial files.

She said converted clients of hers are also really pleased with the integration of merchant services and payroll functions in QuickBooks.

Dan Apgar, owner of Apgar Construction (and not a client of Perryman's), especially likes how the add-on payroll service, available from Intuit for an additional cost, simplifies tax reporting. “I use it for all the deductions. It goes online and downloads the latest tax tables from the state that you live in so you are always up to date,” he said.

Finally, any accounting package worth its P&L sheet will have some way of making tax time easier. QuickBooks software does that as well by making all the necessary data available for export to Turbo Tax, according to Michelle Long, an advanced certified QuickBooks ProAdvisor in Lee’s Summit, Mo.

How to extend QuickBooks for construction

QuickBooks' features do extend beyond accounting. One new feature of Enterprise 2009 that contractors are excited about is the field services management capability, Perryman said. This module allows the synchronization of text and wireless devices so technicians can be rescheduled in real time.

In certain cases, though, contractors will need to look elsewhere for the construction accounting functionality that they need.

One of the advantages of QuickBooks is that there is no shortage of plug-ins. There are 216 third-party software packages that interface with QuickBooks. Some plug-ins extend QuickBooks functions, while others add functions that are not included in the base package.

Not all third party solutions work with every QuickBooks product. So, when making a purchase decision, you should consult the list of QuickBooks compatible solutions for contractors and make sure the additional functionality will be available for your business needs. You can select from many different types of business solutions, including estimating and bidding, business planning, government contract management, human resources, job tracking and management, remote access, and templates and forms.

In the final installment of this article, we explore the limitations and some disadvantages of QuickBooks software.