This article will help you about how you can trace the expenses for a job and compare those expenses to your revenue using the job costs. The job costing tool of QuickBooks desktop enables you to conclude what amount of money you contributed and made for each job.
QuickBooks support will guide you with the steps which enable you to determine that you owe an accurate record of your job costs.
Set up each item with appropriate and enough information required. The preciseness of your job cost reports will depend on the level of details provided in the item list.
If you are looking for how to add, edit and delete items in QuickBooks desktop, Contact QuickBooks Support.
Step 1: setting up a customer for the job
• Set up the job individually for the customers. This helps you to keep track of your income and expenses on a job-by-job basis, and if you add another job for that customer in the future you can simplify your bookkeeping as well.
• When a new job is created the previously recorded transactions turns into job 1.
Step 2: Setting up items to optimize for job costing
• Set up each item with appropriate and enough information required. This will optimize your job costing.
You can contact QuickBooks support to get help with setting up items.
Step 3: Assigning expenses to jobs
All expenses are required to be assigned to jobs to get a complete job cost picture. While entering a bill, check or timesheet ensure that you select the appropriate
job in the Customer: Job column.
For billable time: use either a weekly time sheet or single activity entry to Record the hours spent on the job. Hours should be assigned to the customer or job. The Billable column on the form will automatically check each entry.
Note: You need to import the time to a bill or invoice to be included in the Job Profitability or Company Financial Reports since time sheets don’t allow posting.
• For job-related purchases: (items purchased for a job, subcontracted services) always record a purchase using a bill, check, or credit card. Each item or service purchased should be entered on the items tab. Ensure to assign each item or service to the customer or job, In the Customer: Job column.
• For overhead expenses: create a dummy Customer: Job called “Overhead” if expenses are not caused by a specific job and you want to see the expenses on the job costing reports.
• For mileage: use the Enter Vehicle Mileage window to enter the mileage. You can change the amount for this expense on the invoice (if required).
• For other expenses: (freight charges, postage, etc.)Record the expenses Using a bill, check, or credit card charge. Enter each expense On the Expenses tab. Make sure to assign each expense to the customer or job In the Customer: Job column.
Step 4: Estimates need to be entered in QuickBooks Desktop
• QuickBooks allows you to create your estimates either inside or outside the QuickBooks. You can choose to create your estimates accordingly. Just record summary estimates into QuickBooks if you are creating the estimates outside the program.
• If you are creating invoices in QuickBooks and estimates outside the program, turn your estimates into Invoices by simply entering your invoice information in the Create Estimates window.
• Some job costing reports can be used in QuickBooks desktop without even recording estimates in QuickBooks. However; you can use the full range of Job Cost reports by entering estimates in QuickBooks to ensure that your project budget is on track. Entering Estimates makes it easy for you to evaluate the accurate estimates and adjust them appropriately for future projects.
Note: you have to manually correlate time from an estimate and timesheet while adding time and expenses to an invoice. QuickBooks desktop will not do it automatically.
Step 5: Creating invoices
• Choose the right Customer: Job when creating invoices.
• In order to include the revenue in the job profitability reports, enter at least a summary of each invoice into the program, If you are creating invoices outside QuickBooks Desktop,
Step 6: Run job costing reports
The job costing report will tell you how your business is doing on a job-by-job basis.
You can identify a profitable and non-profitable job by using this report. The job can help you in:
• Creating better estimates
• Analyzing the financial progress of each job
• Identifying problem jobs
If you are looking to access other job reports,
Go to Reports > Jobs, Time, & Mileage.
There is a wide range of job costing reports available in QuickBooks Premier Contractor Edition and Accountant Edition.
To access the reports, go to Reports > Industry Specific > Contractor Reports.
To get more help with job costs in QuickBooks desktop, contact QuickBooks Support Number