QuickBooks Online Integration Now Live

If you run QuickBooks construction payment applications by copying figures out of a valuation spreadsheet and re-keying them into QuickBooks Online, the weak point is obvious. The payment application is agreed in one system, the invoice is raised in another, and someone has to make sure the client, address, tax code, retention, line detail and payment status all match.

That double entry is not just admin. It creates small accounting differences that are hard to spot later: the wrong income account, a missing retention line, a tax code picked from memory, or an invoice marked as paid in QuickBooks but still shown as outstanding in the job file.

The QuickBooks integration in BuildQS is designed to remove that gap. BuildQS stays where you build the valuation, approve the application and track retention. QuickBooks Online stays your accounting system. The integration connects the two so an approved application can become a correctly coded QuickBooks invoice without rebuilding it by hand.

This guide explains what the QuickBooks integration does, where the settings come from, how the workflow runs from project setup to paid invoice, and what to check before you export your first application.

What the QuickBooks integration does

The QuickBooks integration connects BuildQS to your QuickBooks Online company so approved payment applications can be exported as invoices. BuildQS sends the approved valuation data, retention, tax treatment and reporting fields. QuickBooks records the invoice in the accounting system you already use.

In practice, that means:

• Your project client can be selected from QuickBooks customers.
• The customer address is pulled into BuildQS from QuickBooks.
• QuickBooks accounts, tax codes, Classes and Locations are available in BuildQS settings.
• An approved BuildQS application can be exported to QuickBooks as an invoice.
• The exported invoice can carry the project Class and Location for reporting.
• Retention is handled from the BuildQS application instead of recalculated by hand.
• Payment status can flow back, so BuildQS shows the invoice as paid after QuickBooks is updated.

A BuildQS business connects to one accounting provider at a time. If your business uses QuickBooks Online, you connect QuickBooks. If it uses Sage or Xero, you connect that provider instead. Keeping one active accounting connection avoids two different systems trying to own the same invoice workflow.

See the QuickBooks workflow in action

Watch the walkthrough below to see the full process, from preparing an approved BuildQS payment application to exporting the finished invoice into QuickBooks Online.

Where the QuickBooks settings come from

The QuickBooks settings page in BuildQS is not a separate accounting chart that you have to maintain twice. The dropdowns come back from the connected QuickBooks company. If an account, tax code, Class or Location changes in QuickBooks, that is the source BuildQS reads from.

The setup runs from top to bottom:

1. Sales account. Choose the QuickBooks income account your construction invoices should post to. If you add or rename income accounts in QuickBooks, those accounts become available for selection in BuildQS after the integration refreshes.
2. Retention account type and retention account. Choose how retained money should be posted. For many contractors, retention owed is treated separately from normal trade debtors, so it is worth agreeing the exact account with your accountant.
3. Deposit account. Choose the QuickBooks account used when advance payments or deposits are deducted from an application.
4. Default invoice layout. Choose whether invoices should be exported as a summary, grouped by phase, or line by line by task.
5. Default tax code. Choose the usual QuickBooks tax code, then override it on an invoice when a different VAT treatment applies.

This is a one-time setup, but it is not locked forever. If your accountant changes your chart of accounts or adds reporting Classes in QuickBooks, you update QuickBooks first, then select the new values in BuildQS.

Creating a project from a QuickBooks customer

When you create a project in BuildQS, the client can be selected from your QuickBooks customers. This matters because the invoice later needs to land against the same customer record in QuickBooks, not a manually typed copy with a slightly different name.

For example, you might create a project called Test for QBO, pick a customer from QuickBooks, then BuildQS pulls through the address from that customer record. That saves time at project setup and reduces the chance of invoices being raised against a duplicate customer later.

BuildQS can also show a CIS badge where the matching QuickBooks customer is registered as a contractor. That badge is a useful visual check during the workflow. It tells the commercial team that the customer record in QuickBooks carries contractor status, which can affect how construction tax treatment is reviewed before export.

The important point is source of truth. BuildQS is not asking users to maintain a second customer database. It is reading the customer information from QuickBooks and using that information when the application becomes an invoice.

Building the valuation before export

The QuickBooks integration starts to pay off once the project valuation is built properly. In BuildQS, the valuation is structured as phases and tasks. That structure is what later lets you choose whether the invoice should be grouped by phase or shown in more detail by task.

A simple example would be:

1. Create the project Test for QBO.
2. Add a phase called Fire Alarms.
3. Add a task called Fire alarms.
4. Enter 1,000 units at £5 per unit.
5. BuildQS calculates a £5,000 valuation line.
6. Approve the master valuation schedule.

The master valuation approval matters. It confirms the base schedule you are applying against. Once the schedule is approved, applications can move beyond draft and the figures are ready to be used for invoicing.

This is where BuildQS differs from a plain invoice screen. You are not typing invoice lines from scratch. You are exporting an invoice from a structured valuation that already shows the contract work, phases, tasks and completion percentages.

Setting QuickBooks Classes and Locations

QuickBooks Classes and Locations are reporting fields. They help you split income and costs in QuickBooks reporting without creating separate accounts for every project, department or site.

In BuildQS, you can set a QuickBooks Location and Class on the project before you create the application. Those values are then available when the invoice is generated, so the revenue from that project lands in the right reporting bucket in QuickBooks.

You can also set a QuickBooks Class at phase level if you need more detailed reporting. For example, a contractor might want one project Location but separate Classes for fire alarms, access control and maintenance. If you do not need that level of detail, you can leave the phase Class unset and keep the reporting simpler.

This gives you a practical balance. The project can carry the normal QuickBooks reporting fields, while phase-level Classes are available for teams that need deeper analysis.

Creating and approving the application

Once the valuation is approved, create an application for the project. For the fire alarms example, you might enter the task as 75% complete. BuildQS calculates the value of work completed from the task value and the completion percentage.

On a £5,000 task, 75% completion gives a gross application value of £3,750 before retention and tax. If the project has 5% retention, BuildQS calculates the retained amount from the application figures rather than leaving someone to work it out manually in QuickBooks.

Set the application status to approved and record the application date, for example 17 July. Keeping the date in BuildQS is important because payment applications are not just invoices. They sit in a contract workflow with dates, approval status, retention and payment tracking around them.

If you are reviewing payment timing more broadly, the same discipline helps with overdue accounts. Our guide to late payments in construction explains what to do when the payment date slips.

Choosing tax and invoice detail before export

When you generate the invoice in BuildQS, you choose the QuickBooks tax code for that invoice. The available tax codes come from QuickBooks, so the list reflects the tax codes in your connected QuickBooks company.

For a standard invoice, you might choose standard VAT. For other cases, QuickBooks may offer zero rate, exempt, reduced rate or domestic reverse charge tax codes, depending on how your QuickBooks company is configured.

For the contractor example, you can select 5% DRC if that is the correct QuickBooks tax code for the invoice. Domestic reverse charge VAT is a construction-specific treatment, so it should be reviewed carefully against the customer, the work and your accounting setup. If you need a refresher on the rules, see our guide to VAT for construction.

Before exporting, you can also choose the invoice view:

• Summary view, one line for the application.
• By phase, useful when the client wants section-level detail.
• By task, useful when the invoice needs to mirror the valuation line by line.

That choice lets the accounts invoice match how the payment application is presented. Some clients want detail. Others want a clean summary. BuildQS keeps both options available from the same approved figures.

Exporting to QuickBooks

When you export, BuildQS creates the invoice in QuickBooks from the approved application. The invoice is linked back to the BuildQS application, so you can see which invoice was created from which application.

The exported invoice can include:

• The QuickBooks customer.
• The address pulled from the customer record.
• The selected sales account.
• The project Location and Class.
• The chosen tax code, including DRC where configured and appropriate.
• The BuildQS retention amount, for example 5% retention.
• The invoice detail view, summary, phase or task lines.

The value here is not just speed. It is consistency. The same approved BuildQS application creates the QuickBooks invoice, with the reporting fields and retention treatment carried through. That reduces the risk of accounting data drifting away from the commercial record.

Clean integration also helps with job reporting. If you want to understand whether projects are actually making money after retention, overheads and variations, our guide to construction profit margins explains how to calculate the real margin, not just the headline turnover.

Prefer to walk through your workflow live first? Book a Demo

How paid status syncs back

After the invoice is in QuickBooks, the accounting team can record the payment there as normal. QuickBooks remains the accounting system, so the payment is recorded in the place your accounts already reconcile.

When you return to BuildQS and refresh or sync the application, BuildQS checks the QuickBooks invoice status. If QuickBooks marks the invoice as paid, BuildQS updates the linked application to paid too.

That closes the loop. The commercial team can see the application status without asking accounts to update a second tracker. The accounts team can keep working in QuickBooks. Both sides are looking at records that point to the same invoice.

Frequently asked questions

Does BuildQS replace QuickBooks?

No. BuildQS does not replace QuickBooks Online. BuildQS manages the construction payment application workflow, including valuations, completion percentages, retention and application status. QuickBooks remains the accounting system where invoices and payments are recorded.

Where do the QuickBooks accounts and tax codes come from?

They come from your connected QuickBooks company. BuildQS reads the relevant QuickBooks accounts, tax codes, customers, Classes and Locations so you can select them inside the BuildQS workflow. If those records change in QuickBooks, QuickBooks remains the source of truth.

Can I choose whether the invoice is by phase or by task?

Yes. Before export, BuildQS can show the invoice as a summary, grouped by phase, or line by line by task. The right option depends on how much detail your client needs and how you want the invoice to appear in QuickBooks.

Does the integration handle retention?

Yes. BuildQS calculates retention from the project and application figures, then carries the retention treatment into the export. You should still agree the correct retention account setup with your accountant so the QuickBooks posting matches your reporting requirements.

Does paid status update automatically in BuildQS?

BuildQS can refresh the linked QuickBooks invoice status. If the invoice has been paid in QuickBooks, the linked BuildQS application can update to paid after refresh or sync. That avoids maintaining a separate manual paid tracker for exported applications.

Sources

• Intuit QuickBooks, QuickBooks Online product and developer documentation, on customers, invoices, tax codes, Classes and Locations (intuit.com).
• HM Revenue & Customs, VAT domestic reverse charge for building and construction services guidance (gov.uk).
• HM Revenue & Customs, Construction Industry Scheme guidance (gov.uk).

This guide is general information for UK subcontractors, not tax or accounting advice. VAT, domestic reverse charge and CIS treatment should follow current HMRC rules, your QuickBooks setup and your own contract terms. Reviewed by Katarzyna Machalinski FCMA, last reviewed 30 June 2026.