Want to learn the process to track job costs in QuickBooks? If that is the case, then we suggest you read this post carefully till the end. Job costing basically means tracking the expenses for a job and comparing those expenses to the revenue. With QuickBooks desktop’s job costing tools, one can see the money that is spent and also make for each job. We recommend you to follow the steps to ensure that he/she has an accurate record of the job costs. Ensuring to setup each item with enough information is recommended.
Moreover, the level of detail in the item list will determine the preciseness of the job cost reports. Read this process to learn the process to add, edit, and delete items in QuickBooks. Or you can also contact our team professionals at +1-844-521-0490 for any further assistance.
Steps to Tracking job costs in QuickBooks Desktop
The user can perform the below steps to track job costs in QuickBooks. Let us have a look:
Step 1: Setting up a customer: job for each of the job
In case the user is having only one job for a particular customer, then the user is recommended to set up an individual job for that customer. This will enable to keep a track of the income and expenses on a job by job basis and can simplify the bookkeeping if the user adds another job for that the customer in the future.
Step 2: Assigning all the expenses to jobs
In order to get a complete job cost picture, the user should ensure to assign all the expenses to jobs. Choose the appropriate job in the customer: job column whenever a bill, check, or timesheet is entered.
For billable time
Recording the hours spent on the job, either by using a weekly timesheet or a single activity entry. The user should assign the hours to customer or job. And each of the entry will be checked on its own in the billable column on the form. The most important point to note here is that the time must be imported to a bill or invoice to be included in the job profitability or company financial reports.
For overhead expenses
In case the user goes for allocating overhead expenses for specific jobs, then that can be calculated by performing some set of steps.
For job related purchases
The user should use a bill, check, or credit card charge for recording the purchase. Now, on the items tab, entering each item or service that is purchased. Now, in the customer: job column, the user should ensure to assign each item or service to the customer or job.
For this the user needs to record the mileage in the enter vehicle mileage window and in case the user wishes to change the amount for this expense, then it can be done on the invoice.
For other expenses
The user should use a bill, check, or credit card charge for recording the expenses. And on the expenses tab, the user should enter each expense. In the customer: job column, the user should ensure to assign each expense to the customer or job.
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Step 3: The next step is to enter the estimates in QuickBooks
- The user can create estimates in or outside of QuickBooks. In case the user goes for creating estimates with a spreadsheet or outside of the program, then it is recommended to record summary estimates into QuickBooks.
- In case the user creates an estimate outside of the software, whereas the invoice is created in QuickBooks, then the user can simply enter the invoice information in the create estimates window and then turn the estimates into invoices
- The user can also use some job costing reports without recording estimates in QuickBooks desktop. It should be noted that entering estimates in QuickBooks permits to use the full range of job cost reports to make sure your project budget is on track.
- This also permits the user to evaluate how accurate the estimates are and adjust them properly for future projects.
It should be noted that in case the user enters time and expenses on estimates and also on timesheets or bills, then the user would have to pick one to transfer to an invoice.
Step 4: Creating an appropriate invoice
- The user should ensure to select the proper customer: job when making an invoice
- In case the user prefers creating invoice outside of QuickBooks, then it is suggested to ensure to enter at least a summary of each invoice into the program so the revenue is included in the job profitability reports.
Step 5: Running job costing reports to see how the business is doing on job-by-job basis
The user can use the job reports for spotting which job is profitable and which is not. This will assist the user in creating better estimates, analyze the way in which the job is heading financially and also look for the issue related to the jobs.
For accessing different job reports, the below steps can work:
- The first thing is to move to the reports menu
- And choose jobs, time, and mileage
The QuickBooks premier contractor edition and accountant edition caters different job costing reports. These reports can be accessed by performing the steps below:
- The user needs to move to the reports menu
- And also choose industry specific and then select contractor reports.
Tracking job costs in QuickBooks desktop is a bit easy, once the reader is thorough with the steps discussed in above. However, if there is any sort of issue, or if the reader isn’t able to track job costs in QuickBooks, then in that case it is suggested to reach out to our QuickBooks enterprise customer support professionals at 1-844-521-0490, and let them perform the process for you.
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