Tracking Job Costing in QuickBooks by Razvan Diaconescu

in Here is your first Forum Mon Jul 15, 2013 1:36 pm
by chainsaw • 299 Posts

Job cost tracking is an extremely important part of a contractor’s business. Job costing means tracking the expenses for a job and then comparing those expenses to the job’s revenue. This tells you which jobs are making money and which are not <a href="http://tiffanyjewelry002.iwannayou.com/2...y-darren-firth/">iwannayou</a>. With the QuickBooks job costing tools you can easily see exactly how much money you spent—and made—on each of your jobs. You won’t have to wait until you do your taxes at the end of the year to see how your business is doing. Plus, you’ll be able to see which types of jobs are winners and which are losers, so you’ll know which jobs to take in the future. Job costing in QuickBooks can also help you estimate more accurately <a href="http://www.liamsbag.com">liamsbag</a>. Estimating may be the most important—and most difficult—part of running a contractor business. But unless you compare your estimated costs to your actual costs after the work is complete, you have no way to know if you are estimating too high or low, and no way of improving your ability to estimate in the future. The QuickBooks job cost reports make it easy for you to compare your estimated costs to actual costs. Job costing in QuickBooks is easy. You are probably already entering most, if not all, of the information you need into QuickBooks. If you follow a few simple steps, full job cost reports will be at your fingertips whenever you need them <a href="http://www.novagown.com/maggie-sottero-b...1833_p2623.html">maggie sottero wedding dress</a>. (The QuickBooks Premier Contractor Edition gives you additional reports for Job Costing.)</p>
<p>Set up a Customer:Job for each of your jobs. Even if you have only one job for a particular customer, it’s a good idea to set up an individual job for that customer. This allows you to keep track of your income and expenses on a job-by-job basis, and it can simplify your bookkeeping if you add another job for that customer in the future. Set up your items to optimize for job costing. The level of detail in your Item list determines the level of detail in your job cost reports. Assign all your expenses to jobs. To get a complete job cost picture, make sure to assign all your expenses to jobs. QuickBooks makes this easy—simply make sure you select the appropriate job in the Customer:Job column whenever you enter a bill, check, or timesheet. Overhead expenses that aren’t specific to a job can be assigned to a “dummy” job, as described in the link above. For billable time: Record the hours spent on the job, using either a weekly timesheet or a single activity entry. Assign the hours to the customer or job (if you’re tracking by job). Each entry will automatically be checked in the Billable column on the form. Note: Timesheets are a non-posting entry. Time must be imported to a bill or invoice to be included in the Job Profitability or Company Financial Reports. For job-related purchases: (items purchased for a job, subcontracted services) Use a bill, check, or credit card charge to record the purchase. On the Items tab, enter each item or service you purchased <a href="http://www.liamsbag.com/goods-111-%E3%80...r+business.html">overstock leather handbags</a>. In the Customer:Job column, be sure to assign each item or service to the customer or job (if you’re tracking by job). For overhead expenses: Expenses not caused by any specific job (rent, office supplies, etc.) should not be assigned to a Customer:Job. However, you might still want to see these expenses on job costing reports. To do that, create a dummy Customer:Job called “Overhead” and then assign all of your overhead costs to that fake job. For mileage: Record the mileage in the Enter Vehicle Mileage window. If you want to change the amount for this expense (to charge the customer more than the standard rate), you can change it on the invoice. For other expenses: (freight charges, postage, etc.) Use a bill, check, or credit card charge to record the expenses. On the Expenses tab, enter each expense. In the Customer:Job column, be sure to assign each expense to the customer or job (if you’re tracking by job). Enter your estimates in QuickBooks.</p>

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