How to Register a Change Order in QuickBooks Online

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So, you’ve hit a change in a project. Maybe your customer wants more work. Or perhaps the price of materials has gone up. Either way, time for a change order! If you’re using QuickBooks Online (QBO), handling these changes is easier than you think. Let’s walk through how to register a change order, step by step — with a smile.

TL;DR (Too Long; Didn’t Read)

If you need to record a change order in QuickBooks Online, here’s the simple scoop: You can’t add a formal “Change Order” document in QBO natively, but you can edit an existing estimate or create a new one to capture the changes. Be clear with line item notes. Always save versions of your estimates to track what’s new. And if you’re invoicing, update everything accordingly.

First Thing’s First – What’s a Change Order?

A change order is when something changes in a job or project after the original agreement was approved. It might involve more work, different materials, or a new timeline.

In the world of QuickBooks Online, there’s no fancy “Change Order” button (not yet!). But don’t worry — there’s a smart way around it.

Step 1: Choose How You Want to Record the Change

You have two good options:

  • Edit the Existing Estimate: If the change is small, you may just update the original estimate directly.
  • Create a New Estimate: If it’s a big enough change, make a new estimate with a note that it’s a change order.

*Pro tip:* Always talk to your client and confirm the change before making it official in QBO.

Step 2: Updating the Estimate

If you choose to edit the original estimate, do this:

  1. Go to the left-hand navigation menu and click on Sales > Estimates.
  2. Find the estimate that needs changing and click on it.
  3. Add a new line item specifically for the change. Label it clearly. Example: “Change Order #1: Additional Materials”.
  4. Enter the price and description.
  5. Recalculate the total and review it thoroughly.
  6. Click Save and Send to show it to your customer.

Let your client approve the updated estimate before moving forward. That’s smart business!

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Step 3: Creating a Separate Change Order Estimate

If you’d rather keep your estimates separate, you can create a fresh estimate that represents only the changes. Here’s how:

  1. Click + New on the left-hand side.
  2. Select Estimate.
  3. Pick your customer and project.
  4. In the Estimate Number field, you can add “-CO1” or something similar to show it’s a change order.
  5. Fill out only the changes, like additional hours or materials.
  6. In the message or description box, write a clear note: “Change Order #1 – Additional Flooring requested.”
  7. Click Save and Send.

This gives you a paper trail and keeps everything clean and separate.

Step 4: Managing Approvals

Once you’ve sent your customer the updated or new estimate, they need to approve it. QuickBooks lets them approve straight from the email.

Cool, right?

That way, you don’t move forward without their sign-off. That protects you — and your cash flow.

Step 5: Update the Invoice

Now that you have the change approved, time to update the invoice. This ensures you’re getting paid for the new stuff.

Here’s what to do:

  1. Click + New > Invoice.
  2. Select the customer and attach either the updated estimate or change order estimate.
  3. Confirm the new line items are included and correct.
  4. Send it off to the client.

*Pro tip:* You can also convert from the estimate directly by opening that estimate and clicking Create Invoice. Super smooth!

Optional: Use the Description Field Like a Boss

There’s power in your words! Use the description fields in estimates or invoices to clearly show what’s new.

Some creative label ideas might include:

  • “CO#1 – Kitchen Tile Upgrade”
  • “Change Order: Add 5 Light Fixtures, Client Approved 4/8/24”
  • “Extra Painting Work – Per Customer Request”

Doing this keeps everything obvious to your clients and your accountant.

Track Your Changes Somewhere

If your change orders are frequent, make yourself a simple system:

  • Create a custom field called “Change Order #”
  • Keep a Google Sheet or note with a log of change orders per job
  • Mark each one as Approved, Invoiced, and Paid

Little details now can save you big headaches later.

A Fun Metaphor – Change Orders are Like Pizza Toppings

Think of your original estimate as a basic cheese pizza. Now your client wants mushrooms. And olives. Oh! And extra cheese. 🍕 Every one of those toppings is a change order.

You’re still making the pizza, but it’s different than what you originally priced. Charge accordingly.

Bonus Tip: Use Projects to Keep Change Orders Organized

If you’re subscribed to QuickBooks Online Plus or Advanced, use the Projects feature!

  • Each project can have a timeline, cost breakdown, and profit report.
  • See how each change affects your bottom line.

Awesome, right?

Common Mistakes to Avoid

  • Not getting client approval before invoicing — ouch!
  • Forgetting to update the invoice with the changes.
  • Mixing up multiple change orders in one estimate without clear labels.
  • Not tracking versions or saving original estimates.

We all make mistakes — now you know how to dodge the frequent ones!

Let’s Wrap it Up 🎁

Change orders don’t have to be messy or confusing when you’re using QuickBooks Online. Just treat each one like a mini-contract update. Be clear. Be detailed. Be sure to get client approval for every change.

Whether you tweak the original estimate or make a brand-new one, keep things neat and tidy. Your future self (and your accountant!) will thank you.

Now go forth and conquer those change orders like the accounting hero you are!