Question

Job Cost Accounting

Forum|Forum|5 years ago
February 28, 2021
8 replies
45 views

I am a residential contractor, using QBO to track costs by project and customer. However, I would really like to add another dimension to this data organization, tracking costs by types of work within each job: "Framing" or "Trim" or "Painting", etc.

Ideally, I would be able to use these categories across Estimates, T-sheets, Expense Tracking, and Invoicing.

Honestly, this doesn't seem like rocket science, but I cannot seem to find any articles on how I might be able to do this.

Would it make sense to use the "class" feature within QBO, or perhaps the products/services feature?

I can't even seem to find any basic articles on this website on how to use these features... they may be there, but they do not show up for me when I search!

Any input appreciated!

QuickBooks Online

R

ReymondO

Moderator

Let me share with you some insights about the differences between class tracking and product/service features.

In QuickBooks, you can create classes that you assign to transactions. This lets you track account balances by the department, separate properties you own, business office or location, or any other meaningful breakdown of your business. This way, you'll get a clearer insight on your sales, expenses, or profitability by business segment.

On the other hand, using the Product/Service feature helps you track how much you make and spend on each product or service. You can enter these as items so you can quickly add them to sales forms. Using this will give you more detailed financial reports and helps you complete transactions faster.

If you aren't sure what features are you going to use, I'd recommend reaching out to your accountant. They are the ones who can provide strategic insights to your businesses.

You can also check out our class tracking overview to learn if it’s the right tool for you and how to get started.

I've also included these articles that you can use as an additional reference in managing your transactions in QuickBooks Online:

Let me know if you need further assistance with this. I'm always around to provide answers and clarifications to your questions. Have a great day ahead and take care.

L

lcmech5572

how do you add departments in QuickBooks desktop? these instruction are for QBO which is different than the desktop. we have several states that we do work and want to track by state, but also by job and by class.

Z

ZackE_

Moderator

Thanks for joining this thread, Icmech5572.

The steps mentioned in ReymondO's post are for creating departments by classes in QuickBooks Online. As his post mentions, with classes, you can track account balances by department, separate properties you own, business office/location, or any other meaningful ways of tracking your information.

The class tracking feature is available in QuickBooks Desktop as well.

Here's how to turn it on:

Open your company file.
In the top menu bar, go to Edit, then Preferences.
Access your Accounting screen.
Open the Company Preferences tab.
Tick your Use class tracking for transactions checkbox.
If you want a reminder when you haven't assigned a class, turn on the Prompt to assign classes checkbox.
Select OK.

After activating class tracking, you can set up categories for expenses and accounts. You'll want to use classes for one category only. For example, if you're using classes for department, don't use them for store locations.

Please feel welcome to send a reply if there's any additional questions. Have an awesome Tuesday!

Fiat Lux - ASIA

Level 14

@appletreeconstru

As another option, consider having a construction management app to let you get a better insight of your operation. It will integrate with QBO and TSheets/QB Time.

Sign up

Login with SSO

Let's get you signed in

Login with SSO