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Livin the dream...
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Discussion Starter · #1 ·
I'm getting quickbooks setup and would like to do accurate job costing. To do this I want to input all my receipts and label according to the job. I want to do this to allow me to see what I'm making and where I'm at on different jobs.

How do you handle receipts from your lumber yard? I get a statement at the end of the month but would like to input my receipts on a weekly basis to know what materials need billed for certain jobs. Can someone explain the process to me?

Is it worth the time to label all my transactions according to job? I have a good friend who's opinion is that it is not worth the time???
 

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Contractor of the Month
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Definitely not worth my time, but if you want to analyse the profitability if every job it's a good idea.
 

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Always Learning
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Its worth it if you want to know how you did on each job. It's also a nice tool to look back on actual costs when bidding similar projects. We enter every receipt for everything. Its tagged to a customer, job, and an item code. It doesn't take long at all. Then when we get the statement, we can go down the list in the pay bills menu and check the invoices against the statement. We enter any vendor discount, and then print our checks.
 

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Spencer said:
I'm getting quickbooks setup and would like to do accurate job costing. To do this I want to input all my receipts and label according to the job. I want to do this to allow me to see what I'm making and where I'm at on different jobs. How do you handle receipts from your lumber yard? I get a statement at the end of the month but would like to input my receipts on a weekly basis to know what materials need billed for certain jobs. Can someone explain the process to me? Is it worth the time to label all my transactions according to job? I have a good friend who's opinion is that it is not worth the time???
Look into a neat desk. It's come in handy and I can export right to Quickbooks and turbotax
 

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I do the same thing as overanalyze. Works well for direct costs, but not so well for indirect cost, on a per job basis.
 

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I'm constantly surprised at how many business owners DON'T do this.

I enter my receipts daily and it takes about 2 minutes.

I would try to find a local Quickbooks Pro Advisor to help you set up things you aren't sure about. Mine got me set up for a few hundred bucks and when I have a problem, he will remotely enter the program and fix things for me.

ABC Lumber would get their own account set up for example. When you make a purchase, write the name of the job on the paper receipt with the amount and enter it assigning the purchase to the correct job. When you get the monthly statement, it takes less than 5 minutes to reconcile and pay the bill.

For a Home Depot run when you are getting things for multiple jobs, have them rung up separately so you can enter each receipt to the correct job name.

Sounds like a PITA, but once your system is in place spending a few minutes every night after work doing this is a breeze.

I HIGHLY recommend doing this.
 

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Sophisticated Siding Guy.
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Splitting receipts is the biggest time consumer. I agree I try to split up the purchases. Also try to split up say tools and materials. Other than that it's all business 101. Every company does it.

The data it generates is far to valuable not to have. I have my income split into classes. Breaks my job income down into siding, roofing, windows, etc.

I look at nearly all job reports and my PL statement montlhly.
 

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Hair Splitter
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PO's are your friend. Assign a PO to each job. Most vendors will allow you to enter a PO for each purchase. The only difficulty is when you have multiple purchases on a single trip. You can do separate transactions, which isn't a big deal or just split the receipt that night. I will often mark the receipt on which job gets billed for what.

Once you have a system in place, it won't take too long.
 

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Livin the dream...
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Discussion Starter · #10 ·
Thanks for the input.

This is what is confusing me.

Lets say I have 5 transactions for the month at my lumber yard for $10.

So I enter bills 5 times for a total of $50.

Then I get my statement (actual bill) for $50. How do you plug that in to make it come out/show up correctly?
 

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Spencer said:
Thanks for the input. This is what is confusing me. Lets say I have 5 transactions for the month at my lumber yard for $10. So I enter bills 5 times for a total of $50. Then I get my statement (actual bill) for $50. How do you plug that in to make it come out/show up correctly?
Click pay bills and select them lumber yard.
 

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Contractor of the Month
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Thanks for the input.

This is what is confusing me.

Lets say I have 5 transactions for the month at my lumber yard for $10.

So I enter bills 5 times for a total of $50.

Then I get my statement (actual bill) for $50. How do you plug that in to make it come out/show up correctly?
Spencer if you enter all the individual transaction receipts then you don't enter the monthly statement, you just use it to reconcile. Which means you go though the statement and compare your transactions you entered and make sure you didn't miss any.
 

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Livin the dream...
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Discussion Starter · #13 ·
Spencer if you enter all the individual transaction receipts then you don't enter the monthly statement, you just use it to reconcile. Which means you go though the statement and compare your transactions you entered and make sure you didn't miss any.
Got it boss. That's what I needed. Hopefully I can figure it out now. I've been sitting at the computer all day doing quotes and quickbooks and am about fried.
 

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Contractor of the Month
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Got it boss. That's what I needed.
There is a lot of grey in accounting but consistency prevails everytime. Whether you enter each transaction on the day it occurs, or you enter them all in a lump once a month just make sure you stay consistent and make sure it occurs in the correct financial period.
 

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Always Learning
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Got it boss. That's what I needed. Hopefully I can figure it out now. I've been sitting at the computer all day doing quotes and quickbooks and am about fried.
It is a little overwhelming at first. I really recommend having your accountant help you setup the accts and give you a tutorial. It will save them and you money in the long run.
 

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Super Moderator
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Spencer if you enter all the individual transaction receipts then you don't enter the monthly statement, you just use it to reconcile. Which means you go though the statement and compare your transactions you entered and make sure you didn't miss any.
What Inner Said! :laughing:

The job costing part comes with entering the individual receipts. 10 bucks for the Smith job, 10 bucks for the Jones job, etc.

The reconcile just ensures that your records agree with the vendor as far as what you owe them.

Rob (TNT) above is correct about PO's too. If the vendor offers the option of assigning a job name to the invoice-and most do, use it so you don't have to hand-write the job name on the receipt.
 

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Always Learning
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Another great simple feature of QB is how easy it is to reconcile your bank acct. By running everything through QB, when your bank statement comes, its just a matter of clicking off the matching transactions.
 

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Another great simple feature of QB is how easy it is to reconcile your bank acct. By running everything through QB, when your bank statement comes, its just a matter of clicking off the matching transactions.
:thumbsup:

Just did that today. 300 entries involved in this statement and done in less than 15 minutes and it always balances to the penny. If it doesn't you start investigating.

Also, as I said above, it's best to do this daily if you have a lot of transactions. As also said above by overanalyze, it's best to have a pro help you set this up. It will save HUGE headaches later. Then you can assign the item as either "cost of goods sold" or an expense.

Sorry for the accounting terms. Really do find a certified QB adviser or have your CPA set it up. You'll LOVE it. SO easy.
 

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Always Learning
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My partner and I both do the entries and we have a system to know whats been entered and what hasn't. I always do the bank reconciliation and my partner could care less...lol! I get some sort of satisfaction out of that bad boy being correct to the penny every month!
 

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Livin the dream...
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Discussion Starter · #20 ·
Thanks for all the input. I did purchase the Powertools Software quickbooks template. It was a good investment to have things setup properly from the get go. Well worth the money.
 
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