Set Up Your Items and Services
The first step in using QuickBooks for job costing is to set up your items and services. These are the products or services that you sell to your customers. By setting up your items and services correctly, you can track the costs associated with each job or project more accurately. You can also categorize your items and services by job or project to make it easier to track the costs associated with each one.
Create a New Customer or Job
Once you’ve set up your items and services, you need to create a new customer or job for each job or project you undertake. This allows you to track the costs associated with each job or project separately. You can also assign each item or service to a specific customer or job to make it easier to track the costs associated with each one.
Assign Costs to Your Jobs or Projects
Once you’ve created a new customer or job, you can start assigning costs to it. QuickBooks allows you to assign costs to a job or project in several ways, including:
Creating a purchase order or bill and assigning it to a job or project
Assigning a specific expense to a job or project
Assigning labor costs to a job or project
By assigning costs to each job or project, you can track the actual costs associated with each one more accurately.
Generate Job Costing Reports
QuickBooks allows you to generate job costing reports that provide a comprehensive overview of the costs associated with each job or project. You can generate reports on:
Job profitability
Job costing detail
Job costing summary
Estimates vs. actuals
These reports can help you identify areas where you can improve your job costing process and make informed decisions about your business’s finances.
Use Time Tracking
Time tracking is a crucial component of job costing. QuickBooks allows you to track time by customer or job, making it easier to allocate labor costs to specific jobs or projects. You can also use QuickBooks to track time for specific tasks, which can help you identify areas where you can improve your efficiency and reduce your costs.
Reconcile Your Accounts
Finally, it’s essential to reconcile your accounts regularly to ensure that your job costing data is accurate. QuickBooks allows you to reconcile your accounts with your bank and credit card statements, making it easier to identify any discrepancies and resolve them quickly.
In conclusion, using QuickBooks for job costing can help businesses track the costs associated with specific jobs or projects more accurately. At Sfir Consulting, we specialize in bookkeeping services for small and medium-sized businesses in Canada and the USA. We can help you set up and use QuickBooks for better job costing and improve your bottom line. Contact us today to learn more about how we can help you with your bookkeeping needs.
