It’s Technical Tuesday, and today we are talking about Projects. It is a great feature in QuickBooks Online to track your project’s profitability. You can add project income, expenses, and labor expenses, add old transactions to new projects, and run project-specific reports from a single dashboard. Check out the website for more content www.bcbousa.com
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It’s time for another Technical Tuesday episode and today is all about projects. Use projects in QuickBooks Online to track your project’s profitability. You can add project income, expenses, and labor expenses, add old transactions to new projects, and run project-specific reports from a single dashboard. We talk all the time about the importance of knowing whether you are making or losing money on a job, and this tool can easily help you understand.
Setting up a new project is extremely easy. From the main project page select “new project”, give it a name, and select a customer to associate it with from the drop down menu. You can also add any notes you would like. Once created you are at the project dashboard where you have a snapshot of everything going on associated with the project including estimates, invoices, expenses, time, etc. From here you can also add new transactions to the project.
Tracking labor expenses inside of the project is a breeze. If you are already using QuickBooks Online Payroll then you can allocate time directly to the project and configure it to allocate the true payroll cost of each employee to the project. This includes the full payroll burden including payroll taxes, etc. If you are not using QuickBooks Online Payroll you can still calculate an accurate labor cost including overhead, etc. and associate hours directly to the project.
At any time you can run project-specific reports including project profitability reports, time cost by employee or vendor, and unbilled time and expenses to make sure you are not missing out on any billable expenses and losing revenue. All of these tools and reports are extremely useful in helping you understand whether your company is profitable or not. Tracking each project and having a firm understanding of your company’s profitability is a key part of the foundation of long term success.