If you’re a small business owner, you know that tracking job costs is essential to staying profitable. But if you’re using QuickBooks Online, it can be difficult to keep track of your job costs. Fortunately, QuickBooks Online has a number of features that can help you track job costs easily and accurately. In this article, we’ll take a look at how to track job costs in QuickBooks Online.
What Are Job Costs?
Before we dive into how to track job costs in QuickBooks Online, let’s take a moment to define what job costs are. Job costs are the expenses associated with a particular job or project. These costs include materials, labor, subcontractors, and other expenses related to the job.
Why Track Job Costs?
Tracking job costs is important for a number of reasons. First, it allows you to accurately estimate the cost of future jobs. This can help you set competitive prices and ensure that you’re making a profit on each job.
Second, tracking job costs can help you identify areas where you can save money. For example, if you notice that you’re spending too much on materials, you can look for ways to reduce costs.
Finally, tracking job costs can help you identify areas where you can be more efficient. For example, if you notice that you’re spending too much time on a particular task, you can look for ways to streamline the process.
How to Track Job Costs in QuickBooks Online
Now that we’ve discussed why it’s important to track job costs, let’s take a look at how to do it in QuickBooks Online.
Set Up Job Costing
The first step in tracking job costs in QuickBooks Online is to set up job costing. To do this, go to the Settings menu and select the Job Costing tab. From here, you can set up job costing categories, such as materials, labor, and subcontractors.
Create a Job
Once you’ve set up job costing, you’ll need to create a job. To do this, go to the Jobs menu and select the Create Job option. Here, you’ll be able to enter the details of the job, such as the customer, the job description, and the estimated cost.
Enter Job Costs
Once you’ve created the job, you’ll need to enter the job costs. To do this, go to the Transactions menu and select the Enter Job Costs option. Here, you’ll be able to enter the details of the job costs, such as the cost category, the amount, and the date.
Track Job Costs
Once you’ve entered the job costs, you’ll be able to track them. To do this, go to the Reports menu and select the Job Costing report. This report will show you the total job costs, as well as a breakdown of the costs by category.
Tips for Tracking Job Costs
Now that you know how to track job costs in QuickBooks Online, here are a few tips to help you get the most out of the process.
Set Up Budgets
When tracking job costs, it’s important to set up budgets for each job. This will help you stay on track and make sure that you’re not overspending.
Monitor Costs
It’s also important to monitor job costs on a regular basis. This will help you identify areas where you can save money and be more efficient.
Use Job Costing Reports
Finally, it’s a good idea to use the job costing reports in QuickBooks Online. These reports can help you get a better understanding of your job costs and identify areas where you can save money.
Conclusion
Tracking job costs is essential for any small business. Fortunately, QuickBooks Online makes it easy to track job costs with its job costing features. By following the steps outlined in this article, you can easily track job costs and stay on top of your finances.
