QuickBooks Online setup for custom home builders
A setup that makes job cost by house possible.
Short answer: To set up QuickBooks Online for a custom home builder, create a customer and project for each house, use products and services as cost codes so bills are coded by type of work, keep a construction chart of accounts, record customer deposits as a liability until earned, and track construction loans as their own accounts. Then reconcile monthly.
The core setup
- One project per house, under the client (or under a spec company customer)
- Products and services that match your cost code list
- A chart of accounts with cost of construction split from overhead
- Customer deposits and retainage as balance sheet accounts
- Each construction loan as its own liability account
- Bank rules reviewed, never auto-added blindly
Common mistakes
- Coding job costs to expense accounts with no project
- Recording deposits as income on the day they arrive
- Loan draws recorded as income
- Different cost code lists in QuickBooks and the estimate
Where project software fits
If you use Buildertrend or JobTread, decide which system enters bills so nothing is entered twice. See our Buildertrend and QuickBooks guide.
Sources
Common questions
Which QuickBooks Online plan do builders need?
Project tracking and classes are not on every plan. Check Intuit's current plan list before you buy.
Should I use classes or projects?
Projects for houses. Classes can split divisions or entities. We set this up during onboarding.
Can you set it up for me?
Yes. Setup is quoted after the $750 Checkup.
Related
By John Mos, Founder. Updated . We do not give tax or legal advice. Please ask your CPA or attorney.
See where your margin goes, house by house.
Tell us about your homes and your books. If we are a fit, we start with a $750 Job Cost Checkup: written findings and a fixed quote in 10 business days, credited to your first month if you sign up.