What QuickBooks reports should a contractor review?
The Profit & Loss by Job report is the most important report for any contractor. The standard P&L shows whether your business made money overall, but it doesn’t tell you which jobs made money and which ones lost it. Running P&L by Job shows gross profit for each project individually. You might be profitable overall while losing money on half your jobs. That’s a pricing problem you won’t catch without this report.
Job Profitability Summary gives you a quick snapshot of estimated costs versus actual costs across all active and completed projects. Review this weekly during busy seasons. It shows which jobs are running over budget before they become disasters. Catching a job at 80% of budget when you’re only 60% done gives you time to adjust. Catching it at 120% when the job is finished just tells you what you already lost.
The Estimate vs. Actuals report compares your original bid to what you actually spent. This is where you learn whether your estimating is accurate. If you’re consistently under-bidding labor or over-estimating material discounts, this report shows the pattern. Most contractors guess at why jobs lose money. This report gives you actual data to improve future bids.
Unbilled Costs by Job shows work you’ve done and expenses you’ve incurred but haven’t invoiced yet. Review this before sending invoices to make sure you’re billing for everything. It’s easy to forget the extra trip to the supplier or the change order materials that got buried in the project chaos. Leaving money on the table happens when this report gets ignored.
A/R Aging tells you who owes you money and how long it’s been outstanding. Construction has longer payment cycles than most industries, so seeing invoices in the 30-60 day column isn’t necessarily alarming. But invoices hitting 90 days need immediate attention. Cash flow problems in construction usually start with slow-paying customers that nobody followed up on.
A/P Aging shows what you owe vendors and subcontractors. Review this before approving any payments. It helps you prioritize which bills to pay when cash is tight and keeps you from missing early payment discounts. Pay your subs late consistently and they might not show up for your next project when you need them.
The Balance Sheet gets ignored by most contractors but it shows your overall financial health. Assets, liabilities, and equity at a glance. More importantly, it shows whether retained earnings are growing over time. A business that shows profit on the P&L but declining equity on the Balance Sheet has problems the income statement won’t reveal.
Review job profitability and unbilled costs weekly. Review A/R and A/P aging before processing payments. Review the Balance Sheet and Estimate vs. Actuals monthly. That rhythm keeps you informed without drowning in reports.
Most contractors set up QuickBooks but never configure construction job costing properly, so these reports either don’t exist or show garbage data. If you’re not seeing job-level detail, your chart of accounts and item setup need work before the reports become useful.
Working with a construction bookkeeper in American Fork who understands the industry means someone else generates these reports and highlights what matters. You get the insights without spending hours in QuickBooks trying to figure out what you’re looking at.
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More Questions
Where can I get help with QuickBooks setup in Provo?
Certified QuickBooks ProAdvisors throughout Utah County can help with setup and configuration. Look for someone with industry experience who understands your specific accounting needs. Proper setup from the start prevents costly problems down the road.
Read answerWhat is a QuickBooks ProAdvisor and do I need one?
A QuickBooks ProAdvisor is someone certified by Intuit in QuickBooks setup and use. Whether you need one depends on how complex your books are and whether QuickBooks is currently working for your business.
Read answerWhat is the best chart of accounts for a contractor?
A contractor's chart of accounts should separate direct job costs from overhead. This structure is what enables job-level profitability reporting instead of just business-wide totals.
Read answerWhat financial reports do I need to get a business loan?
Lenders typically require a profit and loss statement, balance sheet, cash flow statement, and two to three years of tax returns. Bank statements and accounts receivable aging reports are also common. Clean, accurate books make a stronger case.
Read answerWhy am I always behind on invoicing?
You're behind because invoicing isn't built into your workflow. It gets pushed aside by everything that feels more urgent until you're weeks behind and missing revenue.
Read answerHow do I track subcontractors in QuickBooks?
Set up each subcontractor as a vendor with their W-9 information and mark them as 1099 eligible. When you enter their bills, assign each one to a specific job or project so you can see sub costs by project and generate 1099s at year end.
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