QuickBooks Online Job Costing (Comprehensive Guide)

QuickBooks Online job costing is an essential aspect for businesses, especially in the construction industry. Whether you're a small contractor or a large enterprise, understanding job costing in QuickBooks Online can help you track expenses and income, ensuring profitability. This article will explore various methods of job costing QuickBooks Online offers, including construction job costing in QuickBooks Online.

‍

Understanding QuickBooks Online Job Costing

‍

What is QuickBooks Online Job Costing?

Job costing means tracking income and expenses by a job and comparing the actual amount to the estimated amount. QuickBooks Online, though not specifically designed for job costing, offers features that can be utilized effectively for this purpose.

Why is it Important?

QuickBooks Online job costing is vital for tracking specific costs of labor, materials, and overhead related to individual jobs. It helps in understanding if costs can be reduced in future jobs, making it an essential tool for businesses.

‍

How to Perform Job Costing in QuickBooks Online

Step-by-Step Guide to Job Costing QuickBooks Online

1. Track Expenses by Customer: Adjust your expense tracking preferences in the Company Settings.
2. Update Settings on Your Customer List: Adjust the settings on your customer list using sub-customers.
3. Adjust Settings on Products & Services: Set up products and services for job costing.
4. Submit Estimates and Invoices: Create an Estimate, have your customer approve it, then convert the Estimate to an Invoice.

‍

Construction Job Costing in QuickBooks Online

For contractors, QuickBooks Online offers specific methods for construction job costing. These include:

1. Using Sub-Customer as Job: Sub-customers can be used to gain some amount of job cost reporting.
2. Using Classes and Locations: Utilize classes and locations for an additional view of your data.
3. Using Project: Leverage the Projects feature to keep all job-related information organized.

‍

‍

FAQs on QuickBooks Online Job Costing

Is job costing available in QuickBooks Online?

Yes, job costing is available in QuickBooks Online. Although not specifically designed for job costing, QuickBooks Online offers features that can be effectively used for tracking income and expenses for specific jobs or projects.

‍

How do I create a job cost in QuickBooks Online?

You can create a job cost in QuickBooks Online by tracking expenses by customer, updating settings on your customer list, adjusting settings on products & services, and submitting estimates and invoices. For construction job costing in QuickBooks Online, you can use sub-customers, classes, locations, or the Projects feature.

‍

Can you add jobs in QuickBooks Online?

Yes, you can add jobs in QuickBooks Online using the sub-customer method. You can also use the Projects feature to keep all job-related information organized together.

‍

How do I track labor costs in QuickBooks Online?

You can track labor costs in QuickBooks Online by setting up products and services for job costing. You can also use the sub-customer method, classes, locations, or the Projects feature for more detailed tracking.

‍

Conclusion

QuickBooks Online job costing is a versatile tool that can be tailored to various business needs. Whether you're looking to track expenses and income or pull project reports, understanding job costing in QuickBooks Online is essential. With practice and proper utilization of features, job costing QuickBooks Online will become a natural part of your business operations.

‍

More QuickBooks Solutions

1. Quickbooks Online for Contractors: As a contractor, you can use QuickBooks to track job costs, schedule jobs, create invoices, and manage your financial data.
2. What are QuickBooks services? (Comprehensive Guide): The price of QuickBooks programs depends on the program you choose and the features you need. The basic QuickBooks Online plan starts at $25 per month.
3. QuickBooks Essentials vs Plus: Which is the Right Choice?: Price is always the most obvious place to start QuickBooks online comparisons. Essentials will cost you $27.50 for the first three months.
4. Does QuickBooks Do Payroll? (Complete Review): Yes, QuickBooks Online can handle all of your payroll needs. QuickBooks Online is a cloud-based accounting software program that offers all the features you need.
5. Is QuickBooks Cloud Based?: QuickBooks Enterprise is designed for larger businesses that need advanced accounting features, such as advanced inventory management and job costing.
6. QuickBooks Live Bookkeeping: The pricing page provides additional information on the plans and services offered. A one-time setup fee of $50 is required for new QuickBooks Online customers.
7. How to Become QuickBooks ProAdvisor (In 4 Easy Steps): There is no cost associated with taking the QuickBooks Online ProAdvisor exam. All you need to do is study the material and write the test.