Can You Do Job Costing In QuickBooks Online?
QuickBooks Online (QBO) offers a great solution for businesses that need to track their expenses by job. This ensures that businesses have a clear understanding of what is being spent and where. But is it possible to do job costing in QBO?
What Is Job Costing?
Job costing is a practice that involves tracking expenses by job. For example, if a business is doing a remodel, they would track all of the expenses associated with the remodel – the lumber, the nails, the contractor fees – in a separate job costing account.
How Does Job Costing Work In QuickBooks Online?
Fortunately, QBO makes it easy to set up job costing. To do so, you will first need to create a Customer/Job List. Then, when you enter a transaction into QuickBooks, you can assign it to a specific customer/job.
Once the customer/job list is set up, you can run reports to track expenses by job. This will give you a better idea of what is being spent and where.
Are There Any Limitations to Job Costing in QuickBooks Online?
While job costing in QBO makes it easier for businesses to track their expenses, there are some potential limitations. For example, QBO only allows you to assign one customer/job per transaction. This means that businesses cannot use QBO to track expenses for multiple jobs at once.
In addition, QBO does not allow you to track time by job. As such, businesses will need to use a third-party time-tracking solution in order to track billable hours by job.
In conclusion, yes, businesses can do job costing in QuickBooks Online. While there may be some limitations to job costing in QBO – such as only being able to assign one customer/job per transaction – it still makes it easy for businesses to understand their expenses.