Setting up and entering Contract amounts as Assets

Hello there, EJKennedy.

I can share some insights about this contract recording in QuickBooks Desktop.

You're on the right track with recording the contracts as estimates then invoicing them one the project is completed. However, since estimates are non-posting entries, it is expected that they will not affect your account balances and on financial reports.

If you want to record them as assets, all you need to do is set up an account and record journal entries for the amounts. Here's how to set up an account in QuickBooks Desktop:

1. Go to the Lists menu, then select Chart of Accounts.
2. From the Account ▼dropdown, select New.
3. Select an Asset account type, then select Continue.
4. Complete the account details.
5. Select Save & Close.

To create a journal entry, go to Company and select Make General Journal Entries.

We wanted to make sure everything is accounted for correctly, so your financial reports are accurate. Since this issue requires in-depth accounting processes, we do recommend that you reach out to an accounting professional. We can only provide the steps you need to do in QuickBooks, but handling your books is best assisted by your accountant.

If you don't have one, we can help you find someone to help you. You can visit the following link to locate accountants based in the US: https://quickbooks.intuit.com/find-an-accountant/

Let me know if you need more help with recording the contracts. I'll be around for you.

@EJKennedy 

A contract, in and of itself, does not constitute an asset and is not reported on the balance sheet.  When construction begins and you incur costs, then you create an asset account called CIP (Construction in progress) to record your costs until you invoice the customer but just having a signed contract is not an asset.