Accurate Time Tracking Is So Much Easier With Workyard
In QuickBooks Online, job costing begins with allocating expenses to specific jobs. Job costing reports provide an overview of how much each job has cost so far—so you can determine whether you’re making or losing money on the job. You can pull job costing reports while a project is still active to determine where you are relative to your budget.
You can also pull job costing reports after you’ve finished a job to see your profit margin and make tweaks in future bids. Your job costing reports will include a brief overview, transactions assigned to the project, and the time spent working on the project.
Creating a job costing report requires that you book all your expenses in QuickBooks on a project-by-project basis; in other words, you should allocate every project-related expense you book in QuickBooks to a project.
The three main types of expenses you are going to be booking to jobs:
Let’s look at how you can quickly and easily create a job costing report.
Before you pull your job costing reports, you will need to create customers and projects to track.
Here’s a quick video on how to setup projects in Quickbooks:
There are different ways to record different types of expenses in Quickbooks. Labor is can be the most challenging to track accurately, this is where we’ll spend most of our time here.
Recording Labor Expenses
Labor expenses are entered via the timesheets module. When each time entry is entered you can tag it to a specific job and service item you have setup in Quickbooks.
If you use Quickbooks to run your payroll, after running a payroll, labor expenses will be automatically allocated to jobs that have been tagged. This includes payroll tax expenses which make up part of your complete labor burden for each employee.
Hourly labor is very difficult to track and attribute to jobs accurately, and being wrong by 10-20% can cost you a lot of money. To ensure this is accurate and to reduce headaches use a time tracking app that integrates with Quickbooks.
A time tracking app will allow you to easily capture time sheets every day attributed to jobs and service items and then also automatically feed this data to Quickbooks for you to streamline your job costing.
Here’s a video of how the Workyard time tracking app can make this process much easier for you:
Recording Material, Vendor & Other Expenses
QuickBooks Online makes it easy for you to record material, vendor and any other expenses related to your projects.
If you’ve already paid for an expense, you enter it as an expense. On the other hand, if you plan to pay for the expense in the future, you should enter it as a bill. These are specific types of transactions that inform QuickBooks Online how to apply the correct accounting methods to each expense.
Here’s a quick video of how to enter and manage expenses in QuickBooks:
You can create your estimates in QuickBooks, send them to customers, and then convert them into invoices after you complete the work. By using Estimates you also are setting a budget breakdown for each of jobs in Quickbooks Online.
By doing so you get the added benefit of being able to track your actual costs versus your original budget on the Quickbooks Online job dashboard.
Here a quick video on how to create estimates in Quickbooks Online:
Ideally, you should pull job costing reports regularly to ensure that you aren’t losing money on any of your jobs. Set aside time every week to do so.
Quickbooks Online gives you a convenient dashboard for tracking project profitability at a high level, comparing your budget to your actuals. You can also drill and run specific reports for time costs by employee or vendor and unbilled time and expenses.
Here’s a quick video on how the job costing reports work in Quickbooks Online:
Apps like Workyard simplify job costing in QuickBooks by automating how you capture your job related labor costs & helping you track these costs in real-time—so you always know where you stand.
Meanwhile, easy QuickBooks syncing saves you the hassle of manually inputting information into QuickBooks while improving your data’s accuracy.
When you use Workyard along with QuickBooks, you’ll get a much more accurate picture of your labor costs costs for each of your projects so you can make better, more informed decisions. Use Workyard to quickly pull live reports on how your labor costs are tracking for each of your projects and QuickBooks Online to still get a complete picture of all costs and dig into your vendor and material related expenses.
We’ve created simple videos you can follow to sync Workyard to your QuickBooks file.
You can connect Workyard to QuickBooks Online:
Mistakes happen—especially when it comes to complex accounting tasks. As you start to pull job costing reports in QuickBooks Online, keep in mind some of the most common mistakes.
Avoid these mistakes by being as diligent as possible when tracking your job costing data. With accurate job costing reports, you’ll be able to make better decisions about your projects—and keep your business profitable.
Want to see how Workyard can effortlessly sync with QuickBooks? You can start tracking your company’s labor-related costs in real-time using Workyard’s GPS technology within minutes.
Workyard gives you the power to:
But the easiest way to understand the benefits of Workyard is to experience it yourself. Try a free trial of Workyard today to start building your job costing reports—and to take more control over your job costing in QuickBooks.
QuickBooks doesn’t have a blanket “Construction” category, but when you create a new QuickBooks file, you can select the type of business you own. QuickBooks will populate its income and expense list with the most common construction expenses, such as “Materials” and “Labor”.
In construction, job costing refers to allocating direct and indirect costs to a specific job or project. Job costing helps contractors track the actual cost of a project and compare it to the estimated cost, but you need accurate numbers for your reports to be helpful.
In QuickBooks, job costing refers to assigning income and expenses to a specific job or project, so you can better in-progress job costing reports. These in-progress reports compare your estimates to your actual expenses.
To turn on job costing on QuickBooks desktop, go to Edit > Preferences > Job & Estimate Preferences. Then, check the “Enable Job Costing” box and click “OK.” When you want to check your job costing, you can look at a project in QuickBooks—you will be able to see the current and estimated costs.
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Workyard provides leading workforce management solutions to construction, service, and property maintenance companies of all sizes.