15 QuickBooks Online Tips for Contractors

Take a look at our curated list of tips & tricks on how contractors can use QuickBooks Online as a pro.

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Create Professional Invoices in Minutes

As a contractor, your invoices are more than a bill - they’re a reflection of your professionalism. QuickBooks Online lets you create polished, accurate invoices quickly.
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Steps:
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1. Go to Sales → Invoices → New Invoice.
   
2. Choose a customer or add a new one.
   
3. Select the service or product you’re billing for.
   
4. Customize the template: add your logo, payment terms, and notes.
   
5. Click Save and Send to email it to your client.
   
   

Pro Tip: Use recurring invoices for regular clients (lawn maintenance, cleaning, service contracts). QuickBooks can auto-send invoices weekly or monthly, saving hours every month. 

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Set Up Projects to Track Job Profitability

Knowing which jobs make money is key to growing your contracting business. QuickBooks Projects tracks every invoice, bill, and expense for each job.
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Steps:

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1. Go to Projects → New Project.
   
2. Assign it to a customer and give it a job name (e.g., “Smith Landscaping - September 2025”).
   
3. Assign invoices, bills, and expenses directly to the project.
   
4. Check Project Profitability regularly to see income vs. costs.
   
   

Pro Tip: Even small jobs deserve a project. Over time, you’ll see patterns - which jobs are profitable, which services cost too much, and where to adjust estimates.

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Track Materials, Labor, and Equipment Costs

Tracking costs accurately helps you price jobs correctly and spot problems early. QuickBooks lets you categorize every expense.
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‍Steps:

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1. Go to + New → Expense.
   
2. Choose the payment account (bank or credit card).
   
3. Assign a Category: Materials, Labor, Equipment, Subcontractors, Misc.
   
4. Attach the receipt or invoice for documentation.
   
5. Assign the expense to a Project if applicable.
   
   

Pro Tip: Use the QuickBooks mobile app to snap receipts on the job site. It eliminates lost receipts and keeps your bookkeeping accurate.

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Automate Bank Feeds for Quick Reconciliation

QuickBooks can automatically pull in transactions from your bank and credit cards, saving time and reducing errors.
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Steps:

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1. Go to Banking → Link Account.
   
2. Follow prompts to connect checking or credit card accounts.
   
3. Review downloaded transactions daily.
   
4. Categorize transactions and match them to invoices, bills, or expenses.
   
5. Use Bank Rules to automatically categorize recurring transactions.
   
   

Pro Tip: Automating bank feeds keeps your books current without manual entry. It’s especially useful for contractors with multiple accounts and frequent job-related purchases.

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Connect with a Field Service Management Software

While QuickBooks is the go-to for your accountants and bookkeepers, being in the contracting business on the move requires more advanced features.
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End-to-End Workflow (Beyond Accounting)

• In QuickBooks: Track money after it’s invoiced/paid.
• In a Field Software: Manage the job lifecycle - scheduling, job photos, checklists, estimating, work orders, contracts, and on-site payments.
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Professional Estimates & On-Site Conversions

• In QuickBooks, creating estimates is clunky for contractors.

• In a Field Software, techs can build estimates on-site, capture digital signatures, and convert them into jobs instantly.
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Payments & Job-Level Tracking

• QuickBooks tracks invoices/payments but not job completion.
• A Field Software records time, collects payments on-site, and syncs them back to QuickBooks.
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Data for Growth

• QuickBooks tells you how much you made and spent.
• A Field Software shows which services, employees, and customers are the most profitable.
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Using a field software together with QuickBooks Online gives you as a contractor both sides of the business: the books and the boots on the ground.
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Pro Tip: Check out QuickBooks official field software partners on their Marketplace.

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Manage Sales Tax Without Headaches

Sales tax mistakes are common, but QuickBooks Online makes them manageable.
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Steps:
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1. Go to Taxes → Sales Tax Settings.
   
2. Set your default tax rates for your state or county.
   
3. Confirm tax is applied correctly on invoices.
   
4. Run Sales Tax Liability reports monthly to see what you owe.
   
5. Adjust invoices if rates or jurisdictions change.
   
   

Pro Tip: If you work in multiple counties or states, consider using Classes or Locations to track taxable vs. non-taxable jobs. This prevents surprises during filing.

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Simple Payroll Management for Your Crew

Paying your team accurately keeps everyone happy and your books clean. QuickBooks Online Payroll makes it easy.
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Steps:
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1. Go to Payroll → Employees → Add Employee and enter their details.
   
2. Set up pay schedule, hourly rate, and benefits.
   
3. Assign labor expenses to jobs/projects for accurate job costing.
   
4. Run payroll and review the summary before sending.
   
5. File payroll taxes automatically or manually as needed.
   
   

Pro Tip: Even if you pay some crew as contractors, track their payments separately to avoid misreporting and maintain accurate job profitability.

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Run Job Costing Reports in Minutes

Knowing estimated vs. actual costs helps you price jobs right and stop losing money.
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Steps:
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1. Go to Projects → Project Profitability.
   
2. Select the job/project you want to analyze.
   
3. Review income, labor, materials, and subcontractor costs.
   
4. Compare against your estimates to see if the job stayed on budget.
   
   

Pro Tip: Use this regularly to refine estimates, adjust labor rates, and decide which services are most profitable.

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Keep Track of Accounts Receivable & Payable

A/R and A/P management ensure you get paid and avoid late bills.

Steps:
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1. Go to Reports → A/R Aging Summary to check unpaid invoices.
   
2. Follow up with clients on overdue payments.
   
3. Go to Reports → A/P Aging Summary to track bills and avoid late fees.
   
4. Schedule payments strategically to keep cash flow healthy.
   
   

Pro Tip: Setting reminders for overdue invoices ensures clients pay faster and prevents cash flow problems.

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Set Up Recurring Bills & Invoices

Automation saves time and reduces errors.

Steps:
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1. For invoices: Sales → Recurring Transactions → New.
   
2. Choose the customer, interval (weekly/monthly), and template.
   
3. For bills: Expenses → Recurring Transactions → New.
   
4. Review auto-sent transactions monthly for accuracy.
   
   

Pro Tip: Use recurring invoices for maintenance contracts or regular service work. It keeps income predictable and reduces manual entry.

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Quickly Record and Categorize Expenses on the Go

Don’t let receipts pile up - record them immediately.

Steps:
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1. Open QuickBooks Mobile App → + → Expense.
   
2. Snap a photo of the receipt.
   
3. Select category (Materials, Labor, Equipment, etc.) and project.
   
4. Save - it automatically syncs to QBO.
   
   

Pro Tip: Mobile recording prevents lost receipts and keeps your accounting accurate without extra office time.

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Use Classes or Locations to Segment Your Business

Track profitability by service type or location.
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Steps:
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1. Go to Settings → All Lists → Classes/Locations → New.
   
2. Add categories (e.g., Landscaping, Plumbing, Electrical).
   
3. Assign transactions, invoices, and expenses to a class or location.
   
4. Run Profit & Loss by Class/Location reports to see which segments are profitable.
   
   

Pro Tip: Classes are great for multi-service contractors; locations are ideal for multi-county or multi-state operations.

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End-of-Month Cleanup Checklist

A quick routine keeps your books accurate and ready for taxes.

Steps:
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1. Reconcile bank and credit accounts.
   
2. Check invoices, payments, and job costs.
   
3. Verify payroll entries and categorize correctly.
   
4. Review A/R and A/P.
   
5. Export reports for records.
   
   

Pro Tip: Doing this monthly prevents small mistakes from turning into major headaches at tax time.
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Customize Reports for Better Decision-Making

Reports give insight into profitability and cash flow.

Steps:
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1. Go to Reports → Standard/Custom Reports.
   
2. Choose Profit & Loss by Job, Expense by Category, or Cash Flow.
   
3. Filter by date, project, or class.
   
4. Save report templates for quick monthly review.
   
   

Pro Tip: Customize reports for your specific needs - this helps spot trends, underperforming jobs, and opportunities for growth.

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Set Up Alerts for Overdue Invoices or High Expenses

QuickBooks Online can notify you about potential cash flow issues.

Steps:
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1. Go to Settings → Alerts & Notifications.
   
2. Enable notifications for overdue invoices and unusual expense amounts.
   
3. Check alerts daily or weekly to act quickly.
   
   

Pro Tip: Alerts help you stay on top of cash flow without constantly checking your books manually.

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QuickBooks Online is excellent for accounting, but it’s not built to run a contracting business end-to-end.

Need more customization, and automatic QuickBooks Online sync without leaving your field software?

Check out MotionOps, a simple software for service contractors, that can help you manage your leads, clients, estimates, invoicing, scheduling, and more - with a dedicated integration with QuickBooks Online, making sure everything flows into the right place.
Learn more about the sync here.

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