Implement QuickBooks Integration

How Do I... Implement QuickBooks Integration?

This is a discussion of the recommended procedure for implementing QuickBooks integration with Smart Contractor.

Important Notes On Implementing QuickBooks Integration

Whether your business has already been using QuickBooks or not, then there are some important issues to consider before integrating Smart Contractor with QuickBooks. For a discussion, please see the QuickBooks Item Integration topic.

Then, depending on whether your business has already been using QuickBooks...

If your business has not been using QuickBooks...
You must set up your general ledger chart of accounts in QuickBooks before you connect Smart Contractor to QuickBooks.

The general ledger chart of accounts is very important in that it determines how you will be able to track your business expenses.

If you are not familiar with construction accounting, you may want to consult with a QuickBooks accountant who is experienced in construction for advice on how to do this.
If your business has been using QuickBooks...

There are some important issues to consider before integrating with QuickBooks. Please see the QuickBooks Item Integration topic.

Once you have resolved the issues regarding integration with QuickBooks Items and GL Accounts, there are some important considerations for how to proceed with integrating with QuickBooks...

Run Parallel First

When implementing new computer systems, it is advisable to run the new system "in parallel" with the old system for a while until you have confidence that the new system works as expected.

This will require extra work to enter the same data into both systems during the parellel period, but it provides several advantages. If anything goes wrong in Smart Contractor, you still have your old system to fall back on. It will allow you to compare reports in Smart Contractor with QuickBooks to make sure they agree. And it will allow you to see how much easier it is to enter cost data in Smart Contractor.

To run Smart Contractor in parallel with QuickBooks:

Follow steps in the QuickBooks Integration Setup form to connect Smart Contractor to QuickBooks.
Run the Update QuickBooks Data utility. This can be done in response to the prompt that appears when you save the setup information in the QuickBooks Integration Setup form, or in the Utilities menu using the Update Reference Data option.
Important: Once the QuickBooks data update process has run, then "disconnect" Smart Contractor from QuickBooks by unchecking the Integrate With QuickBooks Data check box in the QuickBooks Integration Setup form.

Following these steps will merge all of your "reference" data, such as Customers, Vendors, Employees, GL Accounts, and Items, and it will allow you to perform all functions in Smart Contractor without transactions being written to QuickBooks. Please see the QuickBooks Integration Setup form for more information.

Integration Dry Run

When are ready to connect Smart Contractor to QuickBooks, and allow Smart Contractor to write transactions in QuickBooks instead of having to enter them in both programs, you should do a "dry run".

Note: Before any data for that job is entered into QuickBooks, save a backup copy of your QuickBooks company file (run the backup utility in QuickBooks).

To do a data integration dry run test (or when you are ready to go live with QuickBooks integration), you must start with a new job that does not have any data entered in QuickBooks.

After making backup copies of Smart Contractor and QuickBooks data, enter data for the new job in Smart Contractor, including the job estimate, and some or all actual job cost data. The job and estimate are entered in the Edit Job and Edit Job Estimate forms. The actual job costs are entered in the Enter Purchases and Enter Labor Hours forms.

Important: When Smart Contractor is connected to QuickBooks, job cost data should only be entered in Smart Contractor - never in QuickBooks. If any job transaction data (purchases or labor hours) is entered in QuickBooks, SmartContractor and QuickBooks will be out of synch. The only way to fix this is to delete all transaction data (purchases or labor hours) for that job in QuickBooks, and re-run the Update QuickBooks Data utility.

After data for a new job has been entered in Smart Contractor, check the Integrate With QuickBooks Data: option in the QuickBooks Integration Setup form to activate QuickBooks integration.

Then, run the Update QuickBooks Data utility. This can be done in response to the prompt that appears when you save the setup information in the QuickBooks Integration Setup form, or in the Utilities menu using the Update Reference Data option.

Then, open QuickBooks and look at the data for that job in the various data entry forms (estimate, bills, check and credit card transactions, etc.) and by running transaction reports in QuickBooks. Compare this with data in Smart Contractor by looking at the Transaction Audit report in Smart Contractor. The transaction audit report lists all transactions in Smart Contractor that might be merged into QuickBooks.

The Smart Contractor transaction audit report allows you to document and confirm every transaction (line by line, and by totals) between Smart Contractor and QuickBooks. If there are are any discrepancies or differences between the numbers in Smart Contractor or QuickBooks, they will be apparent here.

If there are are any discrepancies or differences between the numbers in Smart Contractor or QuickBooks, and you are not able to resolve this, then all you need to do to recover is to restore your QuickBooks data (company file) from your backup copy.

Going Live

When you decide to "go live" with QuickBooks integration, you will need to start with a new job that has not been entered in QuickBooks. To go live with QuickBooks integration, follow the same proceedure described above in the Dry Run instructions. If everything looks good, simply continue.

Remember, you can always reconcile all transaction data that has been merged from Smart Contractor to QuickBooks by looking at the Transaction Audit report in Smart Contractor.

To Summarize...

To make the transition to QuickBooks integration, follow these steps:

1) Decide how you want Smart Contractor to integrate with QuickBooks Items and GL Accounts, as discussed in the QuickBooks Item Integration topic

2) Use the QuickBooks Integration Setup form to set up Smart Contractor for QuickBooks integration.

3) Process a job or two by entering the job cost data into Smart Contractor and QuickBooks in parallel. Run Smart Contractor and QuickBooks reports independently and compare them.

4) Do a dry run...

Before integrating with QuickBooks, save a copy of the QuickBooks company file (do a backup).
Always start with a new job! You must always integrate jobs starting when they are new. You cannot start integrating a job once you have already entered data for it in QuickBooks because transactions entered in Smart Contractor will duplicate what is already in QuickBooks.
Select a job to integrate with QuickBooks by checking the Copy Job To QuickBooks box in the General tab of the Edit Job form.

Note: The job must be set to Status: = "Contract Signed", or "Work Started" in order for data to be copied into QuickBooks.
Enter the data for that job in Smart Contractor. Run the "Update QB Data" utility. Then compare job data between QuickBooks and Smart Contractor using the "Transaction Audit" report in Smart Contractor.

5) When you are confident that everything is working well, continue as above, one job at a time, always starting with new jobs. If there are discrepancies between data in Smart Contractor and QuickBooks that you cannot resolve, you can always disconnect the integration for a individual jobs by un-checking the Copy Job To QuickBooks box in the General tab of the Edit Job form. Contact Smart Contractor technical support for assistance with any questions or problems.