Job costing means that calculating your expenses and comparing those expenses to your revenue. It is a beneficial feature of QuickBooks that helps you to track your project’s cost. Here in this article we will learn to track job cost in QuickBooks Dekstop. If you need any assistance then you can contact QuickBooks Support Phone Number +1888-551-1563.
How To Track Job Cost In QuickBooks Desktop?
Follow the below steps to Track Job Cost In QuickBooks:
Step 1: Set Up A Customer To Track Expense
- First of all setup job for each customer even if you have an only single customer. This will help you to track your income and expense on a job-by-job basis. This will also ease in bookkeeping when you will add another job in future.
- If you have recorded any earlier transaction to the customer then QuickBooks will automatically move those transactions into Job 1 when you create a new job.
Step 2: Set Up Your Items To Optimize For Job Costing
- You are required to feed enough information in each item so that you may create a precise job cost report whenever required. To do this you have to learn how to add. Edit and delete items
Step 3: Assign All Your Expenses To Jobs
Ensure that to provide your all expenses to the job in order to get a complete job cost report. Whenever you enter a bill, check or timesheet then you have to choose the suitable job in Customer: Job column.
- For billable time: You have to assign hours to the customer or job. To do this, you need to calculate and enter the hours spent on the job using either a weekly timesheet or a single activity entry. You each entry will be verified automatically in the billable column on the form. Remember: The timesheets are a non-posting entry so the time must be imported to a bill or invoice that you want to put in Job Profitability or Company Financial Reports.
- For Job-related Purchases: Use a bill, check, or credit card charge to record the items purchased for a job or subcontracted services. Feed each item or service that you purchase in the Item tab. Make sure that you assign each item or service to the customer or job in the Customer: Job column.
- For Overhead Expenses: You should not assign any expense to Customer: Job column which is not caused by any specific job like rent, office supplies, etc. You can create a dummy Customer: Job called “Overhead” to track all overhead costs to that fake job.
- For Mileage: You need to record the mileage in the Enter Vehicle Mileage In order to modify the amount for this expense, you can change it on the invoice.
- For Other Expenses: Enter each expense like freight charges, postage, etc in the Expense tab. You can use a bill, check or credit charge to record the expense. Make sure that you put each expense to the customer or job in the Customer: Job
Step 4: Enter Your Estimates In QuickBooks Desktop
- You have the option to create estimates in or outside of QuickBooks. You can just record summary estimates into QuickBooks if you want to create estimates into QuickBooks.
- If you have created estimates outside QuickBooks but invoice inside QuickBooks then you just need to fill up the invoice details in the Create Estimates window to turn your estimates into an invoice.
- Some job Costing reports can be created without recording estimates as well. But by entering estimates in QuickBooks you get a detail report which puts your project budget under control. You can evaluate your estimates and modify them as per requirement for future projects.
Note: You have to manually feed the time on estimates and invoice as QuickBooks does not correlate it automatically.
Step 5: Create Appropriate Invoices
- You have to choose the right Customer: Job while creating invoices.
- If you prefer to create invoices outside QuickBooks Desktop then you must enter a summary of each invoice into the program so that the revenue is added in the Job Profitability reports
Step 6: Run job costing reports to see how your business is doing on a job-by-job basis
- The Job Reports verify which job is profitable for you and which is not. You can create better estimates, analyze financial reports or identify issue in the job.
- If you want to access various job reports, Navigate Reports > Jobs, Time, & Mileage. The QuickBooks Premier Contractor Edition and Accountant Edition offer you a wide range of job costing reports that can be accessed from Reports > Industry Specific > Contractor Reports.
Get Technical Support
Hopefully, now you are well aware of the steps to track job cost in QuickBooks. If you need any assistance in any of the above-mentioned steps then you can contact Intuit QuickBooks Support Phone Number +1888-551-1563. Our technicians will help you to fix the technical issues. Our QuickBooks Customer Service helpline is open 24×7 to provide assistance.