In daily business life, it is of utmost importance that you have all the critical financial data and statistics at your fingertips. One of the easiest ways to determine how much you are spending on daily business jobs and how much money you have in your hand is to track Job Costs.
Job Costing is a tool that comes included with QuickBooks Desktop. By using this tool, you can track job costs and compare expenses with the revenue that your business is generating by each job. If you are new to QuickBooks, then you may have yet not explored this tool, then I am here to help you out.
To help you manage finances better, in this blog post, we discuss how you can easily track job costs in QuickBooks Desktop. Well, to set up Job Cost Tracking in QuickBooks Desktop, it is always advisable to consult an experienced QuickBooks Desktop.
Steps to Track Job Costs
1. For Each of Your Job Set Up a Customer
To track job costing, first of all, you need to create and set up the customer for each job. In case if you have a single customer, then also you need to follow this step. And, in case, if you have recorded transactions in past, then QuickBooks moves and records customers in Job 1 when you try to create or set up a new job.
2. To Optimize Job Costing Set Up Your Items
The level of details entered in the Item List determines the preciseness of job cost tracking, and, it is, therefore, important to correctly and precisely optimize job costing of every item. By consulting a QuickBooks ProAdvisor, you can elaborately understand steps to optimize job costing set up of your items.
3. Assign Expenses to Job
The next step to track job costs is to assign expenses to the job. In this step, you need to appropriately select the job in the customer list and then, enter details in the bill, timesheet and check. In this step, you need to assign expenses in these sections:
- Billable items and time
- Overhead expenses
- Job-related purchases
4. Enter Estimates in QuickBooks Desktop
After assigning expenses detail, you need to enter estimates in QuickBooks Desktop. You also have an option to enter estimates outside QuickBooks Desktop by using any spreadsheet or another program. And, while using this other option, you just need to enter invoice details in QuickBooks Desktop. By following this step, you can get precise information on job cost and expenses for every item and job or project budget as well.
5. Create Invoices
After entering expenses in QuickBooks Desktop, the next step for track job costing is to create invoices. While creating appropriate invoices, you need to ensure that you have selected the right Customer: Job. And, if you want to create invoices directly in QuickBooks Desktop, then it is important to enter a summary of all the invoices as well.
The Way Forward
Above-mentioned are a few easy steps for tracking job costs in QuickBooks Desktop. Well, it is always advisable that you always set up job costs in QuickBooks Desktop only with the assistance of an experienced and certified QuickBooks Desktop support services provider.