For project-based businesses, tracking and analysing the profitability of a job at the project level is critical. If you have a project-based business such as contracting, interior design, architecture, and the like, you know projects can vary widely in scope and complexity. Whether you’re entirely confident or more on the cautious side when engaging with clients on certain types of work and bidding on jobs, variances and unknowns are likely to crop up during projects. Additionally, projecting what it might take in time and costs to complete a job up front can be challenging.
The Projects feature lets you organise all the components of one job – like sales, expenses, and timesheets – in one place, making it easier to track individual projects or jobs. With Projects, you can quickly access your active projects assign transactions to them, and get project-specific reports. You can also assign budgets and track the status of the project or job.
So where does profitability come in? With Project Profitability you can see how much you are making or losing on each job or project! You can tag invoices, expenses, timesheets, bills and incoming payments for each individual project. A cost tracking calculator will help you have visibility across all the costs associated with the project to help determine just how much profit you’ll be looking at pocketing. Projects Profitability integrates with Payroll and TSheets so you can spend less time calculating labour costs and expenses.
Setting up Projects is easy if you haven’t already done so! Simply follow these five steps:
Turn on Projects by selecting the Gear icon and going to the Advanced tab. Find the Projects section, select Organise all job-related activity in one place box and save.
Create your first project by choosing to Add first project in the Projects menu.
Add your project's income and expenses.
Add existing expenses and timesheets by going to the expenses tab and finding the transaction.
Add your existing invoices and quotes.
For more information on using the Projects feature check out this article.
I have a more advanced question. We run a real estate development company. We have a QBO company setup that will build two buildings, a hotel and an office building. We'd like to track each as a Project. However, we need to run more in-depth reports to help review financials/costs by each project. The Project feature doesn't quite allow this. Is there a way to do this? The workaround I found is set up a customer that matches each project. That way you can run a P&L, CF, or B/S by Customer to see the split when classifying costs by project. Is there any other way? It would be nice for QB to enable "project" as a filter field within all reports.