Job costing means tracking the expenses for a job and comparing those expenses to your revenue. With QuickBooks Desktop's job costing tools, you can see how much money you spend and make for each job.
Follow the steps below to make sure that you have an accurate record of your job costs.
Make sure to set up each item with enough info. The level of detail in your Item List will determine the preciseness of your job cost reports. Learn how to add, edit and delete items in QuickBooks Desktop.
To get a complete job cost picture, make sure to assign all your expenses to jobs. Select the appropriate job in the Customer:Job column whenever you enter a bill, check, or time sheet.
Note: If you enter time and expenses on estimates and also on time sheets or bills, you will need to pick one to transfer to an invoice. For example, QuickBooks Desktop will not automatically correlate time from an estimate and the same time on a time sheet when adding it to an invoice. You have to do this manually. Learn how to create an estimate.
You can utilize Job Reports to identify which job is profitable and which is not. It will help you create better estimates, analyze how well each job is progressing financially, and identify problem jobs before it's too late to be saved.
To access various job reports, go to Reports > Jobs, Time, & Mileage. QuickBooks Premier Contractor Edition and Accountant Edition offer a wider range of job costing reports, which you can access from Reports > Industry Specific > Contractor Reports. Learn more about reports in QuickBooks.