There are many business companies that are using job costing in QuickBooks Online to observe the job costs and make sure that they are doing profit in business for a certain job. Basically, job costing means expense tracking for a particular job and after that compares the expenses to the revenue. It also provides job costing tools in QuickBooks Online by which you can evaluate the money you spent in the last days and how much you got from every job.
This is a multiple-step process in QuickBooks Online which needs job numbers to be allocated to the particular products of expenses and revenues. So, at the beginning of job costing, you have to set up your settings to track the expenses through customers, products, update the settings on your customer list, and services. After all, submit all the invoices and estimates to the customers.
Now, let’s know how you can set up job costing and item tracking.
How can you set up Job Costing?
For setting up the job costing and item tracking for payroll expenses in QuickBooks Desktop. You can follow the below steps for setting up the job costing,
Firstly Set Up the Preference
QuickBooks will track the expenses automatically through job for company payroll expenses while you performing the below-mentioned steps:
- Click on Edit from the main menu.
- Then click on the Preferences.
- Press the Company Preferences button.
- And check whether there is a tick on the Use Class Tracking option or not. Because, if it is not already ticked then, the Assign One Class Per Entire Paycheck or Earnings item option will not be accessible.
- Press the OK button.
- After that, press the Edit from the top menu and then click on preferences.
- Select the Payroll and Employees from the list on the left side.
- Then, click on the Company Preference option.
- Tick on the Job Costing, and Item tracking for paycheck expenses box.
- And choose whether to track by Entire Paycheck or Earnings Item.
Then, Track Expenses by job
QuickBooks shows a checkbox which is called Track Expenses by Job in the Name within the paychecks and payroll reports screen of the payroll item setup wizard whenever you try to create or edit payroll products through add or deduct or contributions of the company. When ticked on the box, QuickBooks Desktop tells the rate of the item at the employee paycheck in the exact way the company paid taxes. Go through the steps mentioned below:
- Click on the List option.
- And then click on the Payroll Item List.
- Click on the Track Expenses by Job.
Make sure to follow the above steps for setting up the job costing preferences. If you didn’t then you will not have the option Track Expenses by Job when you edit the payroll products.
- Click on Next and in the last click on Finish.
- Do these steps for each payroll product that you want to track.
Tick on the Track Expenses by Job will add a customer: job column to the payroll product option under other payroll items on a paycheck. Then, the items will be placed on the division of earnings products on the paycheck. QuickBooks Online Job Costing makes sure that you will follow each price to create better estimates & choices. You can do these by looking for difficult jobs, recognize which job is not profitable according to the expectations, and make good estimates in the future.
What are the advantages of Job Costing in QuickBooks?
- You can make better estimates with the help of a job costing tool.
- And, you can compare the cost of the budget to the cost of a real job.
- Make sure about the project profits.
- Assess the team and their performance particularly.
- You will have full-cost control of jobs.
I hope you will get all the points mentioned above for setting up the job costing in QuickBooks online. If not, then you can directly contact QuickBooks ProAdvisor at a toll-free number +1-850-203-4458 to get additional information about the QuickBooks account software. We are available 24/7 hours for our customers so that you can continue your work as soon as possible.