Which QuickBooks Is Best for Construction Firms and Contractors?

Running a construction business today is more demanding than ever. Between rising material costs, labor shortages, and the demand for real-time project visibility, contractors need accounting software that goes far beyond basic bookkeeping. You need job costing, progress invoicing, retainage tracking, and certified payroll, all integrated with your project management workflows.  

That’s where QuickBooks comes in. It’s the most widely used accounting software among contractors and construction firms in the U.S. But the big question is: Which QuickBooks product is best for construction companies? 

The answer isn’t as simple as “Online vs Desktop.” Intuit has shifted its product lineup significantly over the past year, phasing out some versions while strengthening others. For contractors, the decision has narrowed to two main contenders: QuickBooks Online Advanced and QuickBooks Desktop Enterprise (Contractor Edition). 

Let’s explore which option is better to handle the construction-specific needs. 

The State of QuickBooks: What Contractors Need to Know 

Before comparing versions, it’s important to understand Intuit’s roadmap: 

• QuickBooks Desktop Pro Plus and Premier Plus are no longer sold to new U.S. customers. That includes the popular Premier Contractor Edition. Existing subscribers can continue, but new buyers must choose from Enterprise or Online. 

• QuickBooks Desktop Enterprise remains available and continues to evolve with advanced reporting, inventory, and payroll bundles. 

• QuickBooks Online is Intuit’s growth focus, with constant updates and a thriving app ecosystem. 

What Construction Businesses Require from Accounting Software 

Not every accounting solution is suitable for the construction industry. A contractor’s needs differ from those of a retailer or a professional services firm. Here are the must-have capabilities: 

• Job Costing & Phase Tracking – Accurate cost allocation by job, phase, and cost code. 

• Estimates & Change Orders – Ability to turn estimates into projects, adjust for scope changes, and compare budget vs actual. 

• Progress Invoicing & Retainage – Billing is based on the percentage completed or milestones, with retainage held until the project closes. 

• Certified Payroll – Meeting Davis-Bacon or prevailing wage requirements. 

• Field Time Tracking – Crew hours captured by job and cost code, ideally with geofencing. 

• WIP and Cost-to-Complete Reports – Real-time visibility into profitability and project completion. 

• Integration with Project Management Tools – Sync with tools like Procore, Buildertrend, Knowify, or ConstructionOnline. 

• Multi-User, Remote Access – Teams in offices, job sites, or remote locations must work on the same data. 

With that checklist, let’s evaluate how QuickBooks Online and QuickBooks Enterprise are different for construction workers. 

QuickBooks Online for Contractors: Pros and Cons 

QuickBooks Online (QBO) has gained traction because it’s cloud native. Teams can log in from any device, and integrations with project management software are plentiful. 

Strengths of QBO for Construction 

• Projects Center – Allows job costing and project-level profitability tracking. 

• Progress Invoicing – Lets you bill customers in phases based on estimates. 

• QuickBooks Time Integration – Elite plan offers geofencing reminders, mobile app, and labor cost allocation. 

• App Ecosystem – Strong partnerships with Procore, Knowify, and others extend QBO’s capabilities into AIA billing, retainage, and scheduling. 

Limitations of QBO for Construction 

• Retainage Handling – Not built-in. Requires workarounds with AR/AP accounts or reliance on apps. 

• AIA Billing (G702/G703 forms) – Missing natively. Contractors must rely on add-ons like Knowify or Werx. 

• WIP Reporting – No out-of-the-box WIP or cost-to-complete schedules. Requires Spreadsheet Sync or custom reporting. 

• Complex Payroll Needs – Certified payroll and prevailing wage compliance usually require third-party integrations. 

Who QBO Works For 

QBO can be a good fit for small contractors or subcontractors who value mobility, already use construction management apps, and don’t mind patching gaps with add-ons. For larger firms, QBO often feels too lightweight without extensive integrations. 

QuickBooks Desktop Enterprise Contractor: Pros and Cons 

Designed for growing construction firms, QuickBooks Desktop Enterprise is Intuit’s most powerful accounting platform. The Contractor Edition comes with industry-specific features baked in, plus the ability to scale far beyond QBO. 

Why QuickBooks Enterprise Shines for Contractors 

• Contractor-Specific Reports: Enterprise Contractor Edition includes reports, like Job Costs by Vendor, Cost-to-Complete, Estimates vs Actuals, and Committed Costs. These are vital for project managers and CFOs alike. 

• Robust Job Costing: Track costs by job, phase, and cost code with unmatched depth compared to QBO. 

• Higher Capacity: Handles up to 1 million items, supports 40 users, and offers advanced permissions, making it ideal for growing construction firms.   

• Payroll Bundles: Enterprise Diamond includes Assisted Payroll and QuickBooks Time Elite, making certified payroll and field time management far smoother. 

• Custom Fields and Advanced Pricing: Add job-specific fields and control pricing rules for contracts or suppliers. 

• Integration with Procore and Construction Apps: Although not as seamless as QBO, Enterprise connectors are available for Procore, Buildertrend, and other platforms.   

Where Enterprise Needs Help 

• AIA Billing – Like QBO, Enterprise doesn’t natively handle G702/G703 forms. Add-ons such as Sunburst CAPS or ConstructionOnline fill this gap. 

• Remote Access – Out of the box, the Desktop is local. However, hosting QuickBooks Enterprise solution on the cloud provides secure and fast remote access from any device, enabling your team to work efficiently from anywhere. 

Who QuickBooks Desktop Enterprise Works For 

QuickBooks Enterprise Contractor is best suited for mid to large construction firms that manage multiple projects, crews, and certified payroll. It delivers scalability, advanced job costing, and industry-specific reporting that other QuickBooks editions can’t match. 

Features and Benefits of QuickBooks Enterprise Contractor Edition 

QuickBooks Desktop Enterprise Contractor Edition comes with features specifically designed for construction workflows. These tools go beyond generic bookkeeping, helping contractors manage bids, track project profitability, and streamline day-to-day operations. 

1. Estimate Jobs 

QuickBooks Contractor allows you to create and distribute detailed job estimates to potential customers. These estimates serve as the foundation for change orders, invoices, and budget analyses, ensuring that nothing is overlooked during project execution. 

2. Modify Estimate Orders 

Large projects rarely stay static. With QuickBooks Contractor, you can adjust original estimates quickly. The software automatically generates change orders for customer approval, creating transparency and reducing disputes. 

3. Create Purchase Orders 

From the estimate screen, you can generate purchase orders in a few clicks. This ensures materials are ordered on time, helps avoid costly delays, and keeps project managers aligned with budgets. 

4. Generate Invoices 

QuickBooks Contractor streamlines invoicing by letting you create invoices directly from estimates. You can send progress invoices based on percentage completion or specific items, and when the project wraps up. QuickBooks ensures the final billing is accurate and traceable. 

5. Allocate Employee Time to Jobs 

Attach employee pay and payroll taxes directly to jobs and service items. This makes labor cost allocation accurate, improves job costing, and ensures payroll compliance without manual tracking. 

6. Comprehensive Reporting 

The Contractor Edition includes dozens of reports that matter most to construction firms: 

• Job Profitability – Reveals revenue vs. costs at the job or service-item level. 

• Estimates vs. Actuals – Tracks budgeted vs. actual revenue and expenses. 

• Progress Invoicing Reports – Shows billed amounts compared to estimates. 

• Item Profitability – Analyzes profit margins by service item. 

• Unpaid Bills by Job – Flags outstanding vendor bills tied to jobs. 

• Expenses Not Assigned to Jobs – Catch costs that should be allocated but aren’t. 

These insights give contractors unmatched visibility into project health and profitability. 

7. Job Costing Center 

The Job Costing Center dashboard highlights your most profitable and least profitable jobs in the last 90 days. Quick links to detailed reports provide managers with an at-a-glance view of performance and areas needing attention. 

Additional Capabilities That Drive Contractor Success 

• Estimating & Bidding – Build professional estimates, convert them into invoices, and analyze win/loss ratios to refine your bidding process. 

• Time Tracking & Payroll – Monitor employee hours by job; integrate with payroll for certified payroll or Davis-Bacon reporting. 

• Customer Management & Invoicing – Send invoices, manage accounts receivable, and keep customer records organized. 

• Inventory & Purchase Orders – Track materials, create purchase orders, and manage inventory levels to avoid delays. 

• Reporting & Analysis – Run dozens of contractor-specific reports for better forecasting and project analysis. 

• Multi-User Access – Give role-based access to team members with permission controls. 

• Scalability – Enterprise grows with your company, supporting more users, more data, and more projects. 

• Mobile Access (via Hosting) – With QuickBooks in the cloud, contractors gain secure mobile access to data from anywhere. 

• Integration Options – Connect with project management or CRM systems, like Procore, Buildertrend, or Knowify. 

QuickBooks Desktop Enterprise vs QuickBooks Online: Feature-by-Feature Comparison for Contractors 

Feature	QuickBooks Online Advanced	QuickBooks Desktop Enterprise Contractor
Job Costing	Basic Projects module	Advanced job costing with cost codes and deep reports
Progress Invoicing	Yes	Yes
Retainage	Workarounds or add-ons	Managed with custom workflows; stronger reporting
AIA Billing	Add-on required	Add-on required
Certified Payroll	Add-on required	Supported with Payroll + add-ons
WIP Reporting	Custom via Spreadsheet Sync	Built-in Cost-to-Complete & Estimates vs Actual
Time Tracking	QuickBooks Time	QuickBooks Time Elite bundled (Diamond)
Integrations	Strong cloud app ecosystem	Desktop connectors for Procore, Buildertrend
Users	Up to 25	Up to 40 (Enterprise Diamond)
Cloud Access	Native	Available through hosting
Best For	Small contractors relying on cloud apps	Mid-size to large contractors needing depth & control

Real-World Contractor Scenarios 

Scenario 1: Small Remodeling Firm 

A 10-person remodeling company needs to track projects, bill in phases, and manage subcontractor time. QBO Advanced, paired with Knowify, might suffice. However, as the business grows and payroll complexity rises, enterprise hosting provides more stability. 

Scenario 2: Mid-Size General Contractor 

A GC with 50 employees, multiple projects, and union payroll requirements will outgrow QBO quickly. QuickBooks Enterprise Contractor Diamond with Hosting allows robust job costing, certified payroll, and WIP reports, all accessible remotely.  

Scenario 3: Multi-Entity Construction Group 

A construction group with multiple LLCs needs consolidated reporting. Enterprise handles multiple company files and large data sets better than QBO, especially when hosted. 

Why Hosting QuickBooks Enterprise Changes the Game 

Traditionally, desktop software limited accessibility — files were stored on office servers, creating challenges for teams spread across multiple job sites.  

With QuickBooks Desktop Enterprise hosting, those barriers are gone. Your team can access data anytime, anywhere, collaborate in real time, and stay protected with enterprise-grade security and automatic backups. For contractors, it combines the full power of Enterprise with the flexibility and mobility of the cloud.  

You can experience it firsthand by booking a free trial with Ace Cloud Hosting, an Intuit Authorized Hosting Provider for QuickBooks Desktop. 

Your Next Project Deserves the Right Tools 

For construction businesses and contractors, both QuickBooks Online Advanced and QuickBooks Desktop Enterprise Contractor Edition offer valuable capabilities. QBO Advanced offers flexibility, seamless app integrations, and ease of access for smaller or fast-moving teams. Meanwhile, Enterprise delivers greater depth, advanced job costing, and robust reporting that larger firms often rely on. 

Ultimately, the right choice depends on your business size, project complexity, and workflow needs. Whether you prioritize cloud convenience or enterprise-level control, selecting the right QuickBooks platform ensures your construction projects stay on time, on budget, and on track for growth.