Unlocking Profit: An Overview of Job Costing in QuickBooks Online
When it comes to running a project-based business—whether you’re in construction, creative services, or consulting—knowing exactly where your money goes is the difference between thriving and barely breaking even. That’s where job costing steps in, and QuickBooks Online (QBO) makes it more accessible than ever.
What is Job Costing?
Job costing is the process of tracking all the expenses and income related to a specific job or project. Think labor, materials, subcontractors, and every little cost that adds up along the way. With accurate job costing, you can see the true profit on each project and spot where you’re making or losing money.
Why Does Job Costing Matter?
- Better Pricing: When you know your real costs, you can set prices that actually make you money.
- Fewer Surprises: No more “where did the money go?” moments. You’ll catch overruns before they become disasters.
- Smarter Decisions: Real-time insights help you decide which projects to pursue and which ones to pass on.
How QuickBooks Online Makes Job Costing Easy
QuickBooks Online has evolved to help businesses capture costs at the job and project level, not just in the general ledger. Here’s how:
- Projects Center: Create a project for each job, and QBO rolls up all related transactions—income, expenses, and time—into one clear dashboard.
- Assign Costs and Income: Easily tag bills, expenses, invoices, and even employee time to the right project.
- Project Profitability Reports: Instantly see revenue, costs, and margin for each project, so you’re never guessing about performance. The Project Center has dashboard widgets to see the profit margin of each project in one place.
- Time Tracking: Log employee and contractor hours directly to jobs, making labor costing a breeze.
- Recent Upgrades: Features like custom fields, improved reporting, and integrations with time tracking tools mean more flexibility and insight than ever before.
Who Should Use Job Costing in QBO?
If you manage projects, jobs, or client work—think contractors, agencies, consultants, or property renovators—job costing will give you the visibility you need to grow profitably.
What’s Next?
Getting started with Projects in QuickBooks Online is straightforward, but mastering job costing takes a bit of planning and practice. The good news? We’re launching a workshop series this November to go deeper on setup, tracking, payroll, and reporting. Stay tuned for details, and get ready to take control of your project profits!
Ready to learn more or have a question about job costing? Drop a comment below or join our upcoming workshops.
If you would like to learn more tips and tricks, click here to access our entire course library!!
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