Learn how to use Projects to track project income, expenses, and profitability. This is available for QuickBooks Online Plus, Advanced, and Accountant.
The Projects feature helps you stay organized and track all the moving parts. You can add project income and expenses, tag old transactions to new projects, and run project-specific reports from a single dashboard. This makes it easy to manage your work and see your progress.
Here’s how to set up Projects. Once you’re set up, learn how to use the project cost and profitability tools to do “job costing.”
If you haven’t already, turn on the Projects feature.
The Projects menu now appears in the main navigation bar.
You’ll see your list of projects grow as your business takes on more work.
Now that you’ve created your first project, start adding income and expenses.
Adding transactions to projects won’t change how they’re categorized or affect your accounts. You’re simply tagging them so you can track specific project income and expenses.
The Time option lets you record a single day of work by one of your workers. If you want to add weekly timesheets to a project, there are a few extra steps. Start from Step 5 of “Track income, costs, and profitability by project” to calculate your hourly time costs. Then add your timesheets.
|Working from an estimate?
Add estimates to projects before converting them to invoices for your customer.
You can also use progress invoicing to create multiple invoices from a single estimate. That way, instead of asking for full payment at the beginning, you can invoice for partial payments throughout the project. This is a good option if you’re charging customers for a fixed fee.
You can also tag expenses and timesheets (billable or non-billable) you’ve created outside of the Projects menu.
You can easily create new invoices for a project, but take extra care adding existing invoices.
The best time to add existing invoices to projects is before they’re paid. If you add a paid invoice to a project, the invoice will disconnect from the attached payment. This will also change the invoice’s status to unpaid. You’ll need to follow the steps to reconnect the payment to avoid accidentally charging customers twice.
We don’t recommend adding invoices linked to more than one other transaction, billable expense, or timesheet. If you add a linked invoice to a project, only the invoice is added. You’ll need to add the linked transactions to the project and reconnect them to the invoice.
You can add existing estimates to projects as long as you haven’t converted them to invoices.
You’ll see important cost and profitability info (“job costing”) on each project page.
You need to be the Master Administrator to turn off the Projects feature.