QuickBooks for Contractors: Setup, Job Costing and Integrations
This guide to QuickBooks for contractors covers what it does well, which plan you need, how to set it up for job costing, where it stops, the signs you’ve outgrown it, and what to look for when you connect construction software to it.
We build Billdr, construction management software that syncs with QuickBooks Online. This guide isn’t accounting or tax advice: plan features change, and your accountant should confirm your setup.
Is QuickBooks Good for Construction Companies?
That’s why the most common setup for small and mid-sized general contractors isn’t “QuickBooks or construction software”. It’s both: construction software for the job, QuickBooks for the books.
Which QuickBooks Is Best for Construction?
| QuickBooks Online plan | Job costing (Projects) | Best for |
|---|---|---|
| Simple Start / Essentials | No | Very small trades that don’t need profit by job |
| Plus | Yes | Most small and mid-sized general contractors |
| Advanced | Yes, plus 2026 construction features | Larger contractors: budgets by phase, AIA-style progress billing, change orders and WIP reporting |
Intuit makes Projects, the job costing feature, available only on Plus, Advanced and Accountant. Check Intuit’s site for current pricing.
For most small general contractors, QuickBooks Online for contractors means the Plus plan: if you plan to track profit by job, start there. Upgrading later is possible, but setting up projects from the beginning saves a cleanup. QuickBooks Desktop Enterprise also has a contractor edition with deeper job costing, mostly used by larger firms already on Desktop.
How to Set Up QuickBooks for Construction
1. Organize your chart of accounts for construction
Put direct job costs under cost of goods sold, split into materials, subcontractors, direct labor and equipment rental. Keep overhead (office rent, vehicles, insurance, software) in separate expense accounts, so job reports show only what each job really cost.
| Type | Example account | What goes in it |
|---|---|---|
| Income | Construction income | Contract billings, progress invoices and approved change orders |
| Cost of goods sold | Job materials | Lumber, drywall, fixtures and other materials bought for a job |
| Cost of goods sold | Subcontractors | Plumbing, electrical, HVAC and other trade partners |
| Cost of goods sold | Direct labor | Wages for crews working on jobs |
| Cost of goods sold | Equipment rental | Lifts, bins, scaffolding and tools rented for a job |
| Cost of goods sold | Permits and job fees | Building permits, inspections and dump fees tied to a job |
| Overhead expenses | Office, vehicles, insurance, software | Costs that keep the business running, not tied to one job |
An example construction chart of accounts. Your accountant may name or number these differently.
2. Create a project for every job
Use Projects (Plus or Advanced) and tag every invoice, expense, bill and timesheet to the right project. Untagged transactions are the number one reason job costing reports are wrong.
3. Set up products and services by trade
Create items for the work you sell (framing, electrical, finishes) and for costs (labor, materials, subs), so estimates and invoices roll up cleanly.
4. Record construction costs as they happen
Enter or sync every materials purchase and subcontractor bill against its project the week it happens, not at year-end. That’s what makes a mid-job profit report worth reading.
5. Turn on progress invoicing
In Settings, under Sales, so you can bill deposits and draws against an estimate.
6. Set up sales tax and subcontractor tracking
Configure sales tax for where you work (GST/QST, HST or state sales tax) and mark subcontractors for year-end reporting: 1099 in the U.S., T5018 in Canada.
7. Decide which system owns what
Before connecting any construction software, agree on where each record is created, so nothing is entered twice. The next section shows the usual split.
QuickBooks vs. Construction Software: Which System Owns What
| Task | Usually lives in | Why |
|---|---|---|
| Chart of accounts, payroll, taxes, financial statements | QuickBooks | Your accountant works there |
| Estimates from a cost catalog | Construction software | Line items, markups and templates by trade |
| Change orders and client approvals | Construction software | E-signatures and an audit trail before work starts |
| Schedules, daily logs, timesheets, crews | Construction software | Built for the field and mobile |
| Client updates and selections | Construction software | Client portal |
| Invoices, payments, expenses, bills, purchase orders | Created in construction software, synced to QuickBooks | One entry, both systems up to date |
A common split for general contractors. The sync is what keeps both systems matching.
Where QuickBooks Stops for General Contractors
Estimating. QuickBooks has basic estimates that convert to invoices. Contractors usually need a cost catalog, templates by job type, markups and a quote clients can sign online, and many now use an AI estimator to draft it from plans.
Change orders. Simple Start, Essentials and Plus have no change order workflow. Intuit’s 2026 updates added change order management (including credits for removed work) to QuickBooks Online Advanced; on other plans, contractors track them elsewhere. Our guide to change orders in construction covers how to price and approve them.
Scheduling and the field. There’s no construction scheduling, and daily logs, photos and punch lists aren’t QuickBooks jobs.
The client experience. There’s no client portal for selections, approvals and project updates.
Payroll edge cases. QuickBooks Payroll suits many small contractors, but certified payroll, prevailing wage and union reporting often need specialized tools.
Budget vs. actual by cost code in real time. Possible with careful tagging and Advanced reporting, but most small GCs find it easier in construction software.
Signs Your Construction Company Has Outgrown QuickBooks
Why do construction companies struggle with QuickBooks? Usually not because it’s bad accounting software, but because it’s being asked to run the job too. Watch for these signs:
You don’t trust your job cost reports.
The office re-enters the same invoice or expense in more than one place.
Change orders live in email, texts and spreadsheets.
Progress billing and retainage need manual workarounds every month.
You can’t see budget vs. actual until a job is finished.
Field teams send receipts and hours by text or paper.
What to do when you’ve outgrown it
| Path | Best for | What changes |
|---|---|---|
| Keep QuickBooks, add construction software that syncs | Most small and mid-sized general contractors | Estimates, change orders, schedules and billing move to construction software; the books stay in QuickBooks |
| Move to construction-specific accounting software | Larger firms needing AIA billing, certified payroll or several entities | Accounting and job costing move together to a new system |
Two ways to leave the limits of QuickBooks behind. Most smaller GCs choose the first.
What a Good QuickBooks Integration Should Sync
Does construction software integrate with QuickBooks? Many platforms do, but not every “integrates with QuickBooks” means the same thing. Ask these questions before choosing:
| Question | Why it matters |
|---|---|
| Which records sync? | Look for invoices, payments, expenses, bills, purchase orders and customers, not just invoices. |
| Which direction? | Know whether payments recorded in QuickBooks show as paid in your construction software, or only the other way around. |
| Does it map to the right job? | Each transaction should land on the right customer or project in QuickBooks. |
| Does it keep cost codes? | Job costing only works if costs arrive categorized. |
| Online, Desktop or both? | Many integrations support only QuickBooks Online. |
| Can your accountant keep working in QuickBooks? | The best setup changes nothing for your accountant. |
Six questions to ask about any QuickBooks integration.
How Billdr Works With QuickBooks Online
Billdr’s QuickBooks integration keeps your operations in Billdr and your books in QuickBooks Online:
Automatic sync. Invoices, payments, expenses, bills, purchase orders and customers move from Billdr to QuickBooks Online, so nothing is entered twice. Invoices sync when submitted and payments as soon as they’re received.
Your accountant keeps working in QuickBooks. Your team works in Billdr; the books stay where they are.
Built for construction billing. Create fixed-price, progress, milestone, cost-plus and T&M invoices in Billdr, with approved change orders added in, and let them sync.
Costs land on the right job. Expenses and purchase orders are categorized by project and cost code before they reach QuickBooks, and your budget updates as they come in.
QuickBooks Online only. Billdr integrates with QuickBooks Online, not Desktop.
How to connect Billdr to QuickBooks Online
1. In Billdr, open Settings and go to the App Integrations tab.
2. Select QuickBooks Online and click Connect.
3. Log in to QuickBooks Online, make sure the right company file is selected, and authorize Billdr.
4. Submit an invoice or log a payment in Billdr and check that it appears in QuickBooks.
Connect QuickBooks after testing Billdr and before doing heavy accounting work in it, review the synced data in QuickBooks regularly, and don’t delete the customers Billdr creates in QuickBooks: it breaks the sync. To change a submitted invoice, void it in Billdr and it’s voided in QuickBooks too.
“I used to get so frustrated with myself… why isn’t the data we’ve inputted into this old software communicating over properly to QuickBooks? And with Billdr, there is none of that. It seems to be running perfectly, smoothly.” Kristen Miles, office administrator, The Little Building Company (Peterborough, Ontario)
Owner Dave Conroy adds that since switching, “three people are now able to do the work that four people were doing beforehand.” Read the case study.
Keep QuickBooks. Run the job in Billdr.
See how invoices, expenses and payments sync automatically.
👉 Explore the QuickBooks integration5 QuickBooks Mistakes Contractors Make
Starting on a plan without Projects, then trying to job cost later.
Leaving transactions untagged, so job profit reports are wrong.
Entering the same invoice in two systems.
Lumping labor, materials and subs into one cost account.
Not tracking subcontractors for 1099 or T5018 reporting until year-end.
Spending evenings reconciling two systems?
See how general contractors run jobs in Billdr and keep QuickBooks in sync.
👉 Schedule a 1-on-1 Billdr demoQ1: Is QuickBooks good for construction companies?
Yes, for accounting. QuickBooks is one of the most widely used accounting systems among small contractors and handles invoicing, expenses, payroll, taxes and financial reports well. It wasn’t built to run construction projects, so most general contractors pair it with construction management software for estimates, change orders, schedules and the field.
Q2: Which QuickBooks is best for construction?
For job costing, QuickBooks Online Plus or Advanced. Job costing runs through the Projects feature, which Intuit makes available only on Plus, Advanced and Accountant. Simple Start and Essentials can’t track costs by job, so start on Plus if you plan to job cost.
Q3: How do you do construction job costing in QuickBooks?
Create a project for each job on QuickBooks Online Plus or Advanced, then tag every invoice, expense, bill and timesheet to that project. Use separate cost accounts for labor, materials, subcontractors and equipment so the project profit report shows where the money goes.
Q4: How do I categorize construction expenses and materials in QuickBooks?
Put direct job costs under cost of goods sold, split into materials, subcontractors, direct labor and equipment rental, and keep overhead such as office rent, vehicles and insurance in separate expense accounts. Assign every materials purchase and bill to the project it belongs to.
Q5: Can I track progress payments and construction draws in QuickBooks?
Yes. Client draws are usually billed as progress invoices against the job’s estimate; turn on progress invoicing in Settings, under Sales. A construction loan draw from a lender is different: it’s typically recorded as an increase to a loan liability, so confirm that setup with your accountant.
Q6: Does QuickBooks Online have change orders for construction?
Simple Start, Essentials and Plus have no change order workflow. Intuit’s 2026 updates added change order management, budgets by phase, AIA-style progress billing and WIP reporting to QuickBooks Online Advanced. Most small general contractors manage change orders, with client e-signatures, in construction software and sync the resulting invoices to QuickBooks.
Q7: Does QuickBooks have construction estimating or scheduling?
QuickBooks has basic estimates that convert to invoices, but no construction scheduling and no trade-by-trade estimating from a cost catalog. General contractors usually estimate and schedule in construction software and sync the invoices to QuickBooks.
Q8: Is QuickBooks payroll good for small construction companies?
QuickBooks Payroll works for many small contractors, and tying hours to projects feeds job costing. Firms with certified payroll, prevailing wage or union reporting often need construction-specific payroll tools, so check those requirements first.
Q9: How do I know if my construction company has outgrown QuickBooks?
Common signs: you don’t trust your job cost reports, the office re-enters the same data in several places, change orders live in email and spreadsheets, progress billing and retainage need workarounds, and you can’t see budget vs. actual in the middle of a job.
Q10: What are good alternatives to QuickBooks for construction accounting?
Most small and mid-sized general contractors don’t replace QuickBooks: they keep it for the books and add construction management software that syncs with it. Larger firms that need AIA billing, certified payroll or several entities sometimes move to construction-specific accounting software instead.
Q11: What construction management software integrates with QuickBooks?
Many construction platforms sync with QuickBooks Online. Look for a sync of invoices, payments, expenses, bills, purchase orders and customers, mapped to the right job. Billdr syncs these with QuickBooks Online, so your team works in Billdr while your accountant keeps working in QuickBooks.
Q12: Should a contractor use QuickBooks Online or Desktop?
Most small and mid-sized contractors use QuickBooks Online because it’s cloud-based and connects to construction apps. QuickBooks Desktop Enterprise has a contractor edition with deeper job costing that suits larger firms already on it. Billdr integrates with QuickBooks Online only.
Q13: Who can convert QuickBooks Desktop to QuickBooks Online for a construction company?
Intuit offers a migration path from Desktop to Online, and a QuickBooks ProAdvisor or your accountant can run it and check that jobs, items and open balances come across correctly before you switch.
Q14: How do I track subcontractor payments for tax reporting?
In the U.S., mark subcontractors as 1099 contractors in QuickBooks and track their payments for year-end 1099 forms. In Canada, construction businesses report subcontractor payments on the T5018 slip. Confirm the details with your accountant.
