Tracking Job Costs in QuickBooks Online
When starting a job, most businesses want to ensure the project is completed on budget and on time. Tracking job costs in QuickBooks Online (QBO) helps business owners stay organized and up-to-date with their job costs and progress. QBO can help with tracking all of the associated costs with a job, including materials, equipment and labor.
Steps for Tracking Job Costs
To begin tracking job costs in QBO, here are the steps you need to take:
- Create new customer in the customer list. The customer list includes contacts such as vendors, contractors, clients, etc.
- Create separate accounts for each job.
- Set up a separate income account for each job.
- Create a cost of goods sold or item for each job.
- Connect the customer, income account, and cost of goods sold/item to the transaction.
- Using the cost of goods sold/item from the transaction, enter a line item for each cost associated with the job.
Benefits of Tracking Job Costs
Tracking job costs in QBO can provide businesses with several benefits:
- Financial Tracking: Able to monitor the financial progress of the job by tracking each transaction, amount spent, and remaining budget.
- Job Performance: Analyze job performance by producing reports on estimated vs. actual job costs.
- Tax Preparation: Preparation for tax season is made easier with accurate tracking of job-related transactions.
Overall, tracking job costs in QBO is a great way for businesses to stay organized and up-to-date with job costs and progress.