On a related topic, can the following be applied to a sole proprietorship, where the owner and one employee complete construction projects?  Everything I've read says no, but if there is any accounting guidance that you can point me to that allows this, I would really appreciate it!

"Your set up will depend on the form you are going to submit at the end of the year. If you will submit the W2 form, then you'll be tagged as an employee. However, if you are going to file a 1099 form then you'll consider yourself as a vendor. "

The best option I have found is to enter a zero dollar check into QBO Plus so that the item cost shows on project reports, but that there is no expense recorded.