QuickBooks Online for Contractors: Set It Up Right.
Is your QuickBooks set up to save you money on taxes? QuickBooks’ default setup is built for an office, not a business with trucks, crews, and jobs. When charges land in the wrong place, write-offs get missed. Here’s how to set it up right. Written by an IRS Enrolled Agent and Certified QuickBooks ProAdvisor who keeps contractors’ books in QuickBooks Online.
Pick the Right Plan
Do you want to track costs by job?
- Yes: get Plus or Advanced. Those plans include Projects, which tracks costs job by job. They also include classes, which split your numbers by crew, truck, or trade.
- No: Essentials can work. You can upgrade later without starting over.
Set Up Accounts for the Trades
QuickBooks starts you with a default list of accounts. That list is built for a generic business. Change it to match how you work.
- Job costs: materials, subs, equipment rental, dump fees. These go up and down with each job.
- Overhead: trucks, fuel, tools, insurance, licenses. You pay these whether you work or not.
- Your money: what you take out for yourself gets its own account. It’s not a business expense.
Why split job costs from overhead? So you can see what your jobs make before your fixed costs.
Connect Your Bank and Set Rules
Connect every business bank account and credit card. QuickBooks then pulls in each charge.
Write rules for vendors you pay often, like your supply house or gas station. A rule sorts the charge for you.
One warning. Don’t let QuickBooks add charges without a look. One bad rule can put a year of charges in the wrong place.
Match Your Jobber, Housecall Pro, or ServiceTitan Deposits
When a customer pays by card, the money doesn’t hit your bank right away. It comes later, often several jobs in one deposit, minus card fees.
- Match each deposit to the jobs inside it.
- Record the card fees as an expense.
- Watch for doubles. If your app also sends invoices to QuickBooks, the same sale can show up twice.
Track Job Costs
Turn on Projects. Make one project per job. Tag each cost to its job when you buy it, not months later.
One catch. We keep books on cash basis. That means money counts when it moves. A job you finish in March and get paid for in May shows its costs in March and its income in May. So use Projects to see what each job costs.
Subs and 1099s
Before you pay a sub, get a Form W-9. That form gives you their legal name and tax ID. In QuickBooks, mark them as a 1099 contractor. QuickBooks then tracks what you pay them all year. In January, you’ll know who needs a 1099. See 1099 for Subcontractors.
Sales Tax You Collect
Do you collect sales tax on parts or fixtures? That money belongs to the state. Book it to a sales tax account, not to income. (We book it right, but we don’t file sales tax returns.)
Paying Yourself Depends on How Your Business Is Set Up
- Sole proprietor or one-owner LLC: you take money out as an owner draw. You pay tax on your profit, not on your draws.
- S corp: you pay yourself a fair salary through payroll, then take the rest as distributions. We don’t run payroll, so you’ll need a payroll company.
Not sure which fits? Try the S Corp Tax Savings Calculator.
Setup Mistakes We Fix Most
- Keeping the default list of accounts.
- Counting card payouts as full sales.
- Counting transfers between your own accounts as income.
- Putting personal charges in business expenses.
Want Us to Set It Up?
We set up QuickBooks Online for your trades business:
- Accounts built for a contractor
- Every bank account and card connected, with rules
- One payment app, like Jobber, Housecall Pro, or ServiceTitan, set up so deposits match
- Subs marked for 1099s
- Starting balances entered
Each extra payment app costs more.
Starts at $1,200, one time. We’ll confirm your price and timeline within 3 business days of receiving your statements.
Behind on past months? That’s a catch-up, priced separately. See QuickBooks Cleanup.
After setup, monthly bookkeeping keeps it right. It’s the normal next step, but it’s not required. See bookkeeping for contractors.
Frequently Asked Questions
Which QuickBooks plan do I need?
Plus or Advanced if you want to track costs by job. Essentials if you don’t.
Can I set it up myself?
Yes. This guide covers the main steps. If you’d rather not, we’ll do it for you.
How much does setup cost?
It starts at $1,200, one time. Past months are priced separately as a catch-up.
Do I need monthly bookkeeping after setup?
No. It’s the normal next step, but it’s not required.
I’m on QuickBooks Desktop. Can you help?
We work only in QuickBooks Online, so we can’t take on Desktop files.
Do you set up payroll?
No. We don’t run payroll or set it up.
Can QuickBooks show profit per job?
It shows what each job costs. On cash basis, profit per job can look off when you’re paid in a different month than the work.
Let's Talk.
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