QuickBooks Data Setup Suggestions

Below are some general guidelines on how to setup QuickBooks for an architectural, engineering or construction firm with the intention of integrating it with Sage Construction Management. A PDF Download is also available which includes similar instructions.

QuickBooks Desktop Data Setup Suggestions and AccountingLink Overview

Contact Management - Customers, Vendors and Employees

Importing Vendors and Employees

Since AccountingLink can import Active Vendors and Employees from QuickBooks, it is generally a good practice to review each list in regards to their status. For example, if a vendor is no longer used then it should be marked inactive in QuickBooks before performing the import function within the AccountingLink.

Auto Link QB Customers and Vendors with Sage Construction Management Companies:

Sage Construction Management and QuickBooks Awarded Job Setup

Sage Construction Management does not offer a Customer:Job import option which is why existing Jobs should be completed in QuickBooks. However, newly awarded projects should be setup in Sage Construction Management and then exported to QuickBooks. The client referenced in the Prime Contract form will become the Customer and the combination of the Project and Prime Contract numbers will be the Job number in QuickBooks.

Recommended Chart of Accounts

Type of Account	Account Description	Comment
Asset	Checking Account
	Accounts Receivable
	Retentions/Holdback Receivable	This account should be created if Prime Contract Invoices Retainage (ie Holdbacks) will be tracked in the accounting system.
Liability	Accounts Payable
	Retentions/Holdback Payable	This account should be created if Sub Invoices Retainage (ie Holdbacks) will be tracked in the accounting system.
	Credit Card Payable	Potentially, there could be multiple credit card payable accounts: one for each type of card (ex. Visa, Mastercard, AMEX, Home Depot etc).
	Sales Tax Payable	Potentially, there could be multiple sales tax payable accounts such is in the case or each region in Canada (ex. GST, PST, HST) or sales tax authority in the US.
Income	Construction Income	Cost Code Service Items would reference this account for the purpose of exporting Prime Contract Invoices.
Expense	Construction Expense	Cost Code Service Items would reference this account for the purpose of exporting Bills, Sub Invoices and Employee Misc. Expenses. Alternative to this account would be expense accounts for each resource: materials, labor, equipment, sub, and other.

Service Items - For Cost Codes

The Golden Rule of Job Costing is to have a master list of cost codes for categorizing work. These standard cost codes would be used by estimating, project management and accounting staff so information can flow easily between departments. To facilitate integration between Sage Construction Management and QuickBooks, these cost codes would be entered as Service Items and reference expense and income chart of accounts as shown in the images below. Rules can then be established in the AccountingLink Sync Preferences area to determine how items should be set.

Service Items - Importing Industry Standard Cost Codes

• Click here for options and instructions.

Tracking Expenses By Cost Code and Resource Type (Material, Labor, Equipment, Sub, and Other)

Service Items in QuickBooks should NOT have a resource identifier (ie Material, Labor, Equipment, Sub, and Other). Rather, resources should be setup as Classes in QuickBooks.

Recommended		Not Recommended
Service Items Classes 02000 Sitework 03000 Concrete Materials Labor Equipment Sub Other		Service Items: 02000 Sitework 02000-M Sitework Materials 02000-L Sitework Labor 02000-E Sitework Equipment 02000-S Sitework Sub 03000 Concrete 03000-M Concrete Materials 03000-L Concrete Labor 03000-E Concrete Equipment 03000-S Concrete Sub

Service Item - For Missing Cost Code in QuickBooks

If a master cost code structure will be setup in Sage Construction Management and QuickBooks, the AccountingLink needs to have a "backup" item just in case the Sage Construction Management project cost code does not exist in the accounting system.

The construction unclassified or backup item needs to be set as the Default Item for AP, AR and Time Tracking within the Sync Preferences form. See image below for more details.

Service Item - For Exporting Bills, Sub Invoices and Misc. Expenses That Have Tax (US ONLY)

Since QuickBooks Bills feature does not support Tax Codes, Sage Construction Management will add a line item to represent tax so the total is the same in both systems.

Item Name:   AP Sales Tax: AP Sales Tax
AP Account Reference:   Construction Expense
AR Account Reference:   Not Applicable

Service Item - For Retainage (ie Holdback) Tracking

Applicable if Retainage (ie Holdbacks) for Sub Invoice and Prime Contract Invoices will be tracked in QuickBooks.

Click here for more details.

Classes

Classes are applicable to the AccountingLink for QuickBooks Desktop and can be used for categorizing transaction details. If this feature will be implemented in QuickBooks Desktop and used in conjuction with Sage Construction Management, then these type of records should either represent a resource (ie materials, labor, equipment, sub and other) or match a particular Sage Construction Management Project Classification system (see Sage Construction Management | Settings | Features tab | Lead and Project sub-tab).