Job costing allows you to track the expenses for a job and then compare those expenses to your revenue. This accounting tool allows you to look at each project in detail such as the costs of materials, labor, and overhead. Because of its detail, job costing can help any small business evaluate individual jobs, reduce expenses on similar projects and maximize profitability.
Although job costing is beneficial to any small business, it can be time consuming and cumbersome. Think about the hours it would take to keep track of all costs and expenses then remembering the correct formulas. If you’re in the market for job costing software QuickBooks has the feature already built into its product.
In this article, we’ll explore QuickBooks Job Costing and help you answer the following questions:
Does QuickBooks have job costing?
Can QuickBooks Online do job costing?
How do I set up QuickBooks job costing?
Does QuickBooks Have Job Costing?
Yes, QuickBooks Desktop job costing is offered in the Pro. Premiere, Accountant and QuickBooks Enterprise version. Some may be under the assumption that QuickBooks job costing is only necessary for the construction industry but QuickBooks job costing is valuable to almost all businesses which is why it’s offered across the desktop suite.
Can QuickBooks Online Do Job Costing?
Job costing in QuickBooks Online is offered in the Plus or Advanced Plan. If you are currently subscriped to either of these plans, you can turn QuickBooks job costing on. You will first need to turn on projects (which is QuickBooks job costing for Online users) before beginning to track job costing in QuickBooks Online.
How Do I Set Up QuickBooks Job Costing?
You can setup QuickBooks job costing in the desktop version with 5 steps that are recommended by Intuit. We’ve summarized the QuickBooks job costing basics below.
QuickBooks Job Costing Step #1 – Always set up an individual job for each customer. This allows you to keep track of both your income and expenses on a job-by-job basis.
QuickBooks Job Costing Step #2 – Always assign all your expenses to your jobs. This will allow you to compile an accurate job cost picture.
QuickBooks Job Costing Step #3 – Add your estimates to your company file. Even if you use a separate software for your estimates, ensure you add a summary to your company file to accurately calculate QuickBooks job costing.
QuickBooks Job Costing Step #4 – Create invoices with the correct information. Ensure you are selecting the correct customer and job when creating invoices to accurately track the revenue.
QuickBooks Job Costing Step #5 – Run QuickBooks job costing reports between all steps. You can utilize QuickBooks job costing reports to analyze how your job is progressing financially as well as help you create better estimates and save jobs before your margin is too low. Your QuickBooks version will determine the different reports to choose from for QuickBooks job costing.
Share QuickBooks Files with Qbox!
Now that you are assured QuickBooks job costing can be completed in Desktop, share your QuickBooks company files and QuickBooks Desktop job costing reports with Qbox! Qbox will share your files with remote users with no need for a server or for as little as $12/month. To learn more, visit https://www.qboxplus.com/features/