Project profit

Please can anyone help me 

Ensuring the project profit is tracked correctly in QuickBooks is essential for accurate reporting and bookkeeping, Lynn. I'm here to ensure you achieve this.

In QuickBooks Online (QBO), it's important to note that you have to ensure all costs are properly recorded and allocated to the project before marking it as complete. For more details about how the feature works, please see this article: Create and manage projects in QuickBooks Online.

Instead of issuing an invoice for the $20k profit, I suggest maintaining it as a credit balance directly linked to the project.

Subsequently, we can create a journal entry to record the balance. Here's how:

1. Go to + New and then select Journal entry.
2. On the first line, select the Accounts Receivable account.
3. Enter the 20k amount in the correct column.
4. On the next line, add the other account. Then, enter the same amount in the opposite column.
5. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other.
6. Once done, Save and close.

However, it's advisable to consult your accountant to ensure you're using the correct accounts. They have the expertise to provide guidance and explore other options to help you properly record the profit without messing up your project reports. If you don't have one, I suggest using our Find QuickBooks Certified ProAdvisor tool to look for an expert near you.

Once everything is recorded accurately, I recommend following the steps below to mark the project as complete:

1. Go to the Projects menu.
2. Find the project you want to mark as complete and click on it to open the project details.
3. Click the Edit button at the top right.
4. In the Project Status dropdown, select Completed.
5. Click Save to update the status.

Finally, QBO offers a range of reports that allow you to analyze your sales and expenses. The data can provide valuable insights into your business performance and help ensure the accuracy of your financial records.

Please know that we're here to assist if you want to mark your project as complete or add transactions to a project. Don't hesitate to reach out if you need further help. We're committed to helping you every step of the way.

Thank you. To clarify. In my example all costs are accounted for and the remaining 20k credit on account is our profit. Should I issue a bill/invoice to our “contractor fee” expense line item and zero out the project or leave a credit balance and do a journal entry from project number xx A/R to retained earnings or owners equity in order to keep profit accurate? 

Thank you!  That helps me immensely!

Thanks for updating us, @Lynnwhidden.

On behalf of my colleague, you're welcome. The QuickBooks Community will always be around to lend you a hand any time you need guidance. I'll be around if you need further assistance with any QuickBooks-related tasks. I hope you have a pleasant day ahead. Have a great day!