Do you want to track expenses for a job and want to compare them to your revenue? If so, then now you need not wander for the procedure here and there. Because here we are with your solution by which you can easily track job costs in QuickBooks Desktop.
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Let’s start the blog step by step:
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Procedure to Track Job Costs in QuickBooks Desktop
Tracking the expenses for a job and then comparing those expenses with your revenue is known as Job Costing. You will get a complete record of the amount you will spend and make for each job by adopting QuickBooks’s job costing tools.
By implementing the steps listed below, ensure that you have an accurate and relevant record of job costs. Check whether you set up job costing in QuickBooks Desktop for each item with complete information. The details you have entered in your Item List will decide the preciseness of your job costs reports. Learn the complete steps and procedure to Track Job Costing in QuickBooks Desktop.
Step 1: Setup Customer Job for a particular Job
If you assigned each Customer to do only one job and set up an individual job for that customer. It helps and enables you to keep tracking of income and expenses on a job-by-job basis. Also, get a facility to simplify the bookkeeping by adding another job for that customer in the future.
Step 2: Assign all the Expenses to Jobs
Ensure that you have assigned all the expenses to the job for getting the complete job cost image. Pick the relevant job by approaching the Customer Job Column when you enter a bill, check, and timesheet.
In terms of Billable Time:
Either you work on a weekly timesheet or a single activity entry, record all the hours you have spent on their job. You have to assign hours for both customers and the job. In the Billable column on the form, all the Entries will automatically be checked.
Note: Timesheets are treated as Non-Post entries. You need to know that, Time requires to be imported to a bill or included invoices in the Job Profitability and or Company financing Reports.
In terms of Job-Related Purchases:
It includes all those items purchased for a job and subcontracted services. You can use Bill, Check, credit card charges for recording the purchase.
From the Item tab, You can review and record all the items you have purchased. From the Customer Job Column, you can assign a particular item or service to the customer or Job.
In terms of Overhead Expenses:
To allocate overhead expenses for particular jobs, you will have to choose a few strategies. You need to properly calculate and track overhead costs. Before modifying your company file, talk to your accountant at least once. An Accountant is a person who has full knowledge of your business jobs and company file where you generate and maintain company records.
In terms of Mileage:
You can record the mileage by entering the Vehicle Mileage Window. For this expense, if you are willing to change or modify the specified amount(The amount charged by the customer is higher than the standard rate). Anytime you can change it to make fewer changes on the invoice.
Step 3: Entering of Estimates in QuickBooks Desktop
- The creation of Estimates will be done inside or outside the QuickBooks. If you are willing to create estimates with a spreadsheet or it is outside the program, You can record the summary estimates into QuickBooks.
- If you are willing to create estimates outside the QuickBooks but create Invoices inside QuickBooks then you can easily create all your Invoice Information in the Create estimates Window and move your estimates into invoices.
- You can either use job costing reports without recording estimates in QuickBooks Desktop. Although QuickBooks allows a facility to its users, they can use the full range of Job Costs Reports to ensure that your project report is on track. It allows you to evaluate the accuracy of your estimates and adjust them properly for future reports.
Point to Remember:
When you enter both time and date on estimates and on timesheets and bills. In this way, you have to choose one transfer to an invoice.
Step 4: Make Relevant Invoices
- Ensure that you have selected the right Customer Job at the time of creating invoices
- If you like to create the invoices outside QuickBooks Desktop, you have to manually enter the summary of each invoice into the program. And the revenue comes under the Job Profitability reports.
Step 5: Running of Job Costing Reports
In the 5th step of ‘Procedure to track job costs in QuickBooks Desktop’, analyze your job reports to check whether your business is profitable or it has some losses. This will help you in the creation of estimates, analyzing how well each job is progressing accounting, and financially. Also investigates the issues that will come in the jobs, late to be saved.
- For accessing a variety of Job reports:
- First of all, You have to visit the “Reports” menu.
- After that choose “Jobs, Time, and Mileage”
- Multiple QuickBooks Versions including QuickBooks Premier Contractor edition and Accountant Edition will offer you a wide range of Job Costing Reports. You can navigate to these reports by implementing the following steps listed below:
- You have to visit the “Reports Menu”
- Then, choose “Industry Specific”. After that pick “Contractor Reports”
It offers advanced reporting information at your fingertips.
The End Line
So this was the blog, to track job costs in QuickBooks Desktop. We tried our best to provide information in this blog hope, you like it and now you are able to track the expenses for a job. Further, if in case, you are unable to follow the procedure or need any help to follow the procedure then, you can get our ProAdvisor support through the toll-free number+1-844-405-0904.