How to Manage, Track & Pay Sub-Contractors in QuickBooks

Entering a Bill in QuickBooks Online

1. Create a New Bill:
2. Click the + New button.
   Under the Vendors section, select Bill.
3. Select the Subcontractor:
4. In the Vendor dropdown, choose the subcontractor you just added. 
5. Enter Bill Details:
6. Fill in the Bill Date and Due Date. > Enter the Bill Number provided by the subcontractor.
7. Add Bill Line Item
8. Assign to a Customer or Project (Optional):
9. If the subcontractor’s work is tied to a specific customer or project, use the Customer/Project column to assign the bill accordingly. > Check the Billable box if you intend to pass this cost on to the customer.
10. Save the Bill. 

Entering a Bill in QuickBooks Desktop

1. Go to the “Vendors” menu.
2. Select “Enter Bills”.
3. Choose your subcontractor’s name from the “Vendor” dropdown.
4. Enter the bill date and due date.
5. In the Items section, add the subcontractor service item you set up earlier and the amount.
6. Ensure you select the correct expense account to categorize the payment (e.g., “Subcontractor Expense”).
7. Click Save & Close to save the bill.

How to Pay Vendor Bill

1. Click + New (top left corner).
2. Under Vendors, select Pay Bills.
3. Select the bank account you are paying from.
4. Choose the vendor and check the bill(s) you want to pay.
5. Enter details.
6. Click Save and close.

A Better Way to Manage Sub-Contractor Work

Even though QuickBooks has sub-contractors (known as vendors), which allows you to make payments and see past service/bill history, this functionality can be limited inside of QuickBooks.

But there is good news, with Lexul Field Service sub-contractors can:

1. Be managed with specific service areas (preferred and extended radius’ on a map view) and
2. Sub-contractor rates for more job cost precision and job guidelines.
3. With a complete, formal work order offer and acceptance process, which include:
   • A customer request for job direction and requirements
   • Selected deadline date to accept the work
   • Deadline date to complete the offered work
   • Deadline allows time to offer out to more sub-contractors
   • Email notifications allow the office to see the status (accepted work, invoiced work and work throughout process)
4. Monitor the progress of work they perform in real time
5. Enable standardizing invoicing from the sub-contractor to simplify the review process and entire job process
6. Limit job budgets with an NTE (not to exceed) to prevent sub-contractors from overbilling without approval
7. Keep projects in line with rate cards for automatic job price guidlines

Free Sub-Contractor App

Not only what was mentioned above and more, but sub-contractors receive a completely free lite version of Lexul Field Service, so they can take advantage of our platform to efficiently carry out jobs and work with customers. Give sub-contractors more than just a job, give them the exact tools to execute the job!

Have any questions? Reach out to us here: support@lexul.com or 1.855.595.3600
We look forward to helping you!

Austin, LFS Team