One of our program offerings that has helped our customers plan their operating budgets is job costing. Every business, including service businesses, knows the importance of costing out a job for a customer. First, because a company wants to know how much profit it will make on a particular job. Second, because a company needs to know how to assign expenses to a particular job.
QuickBooks® makes job costing easy. It takes three steps.
1. Whenever you write a check in QuickBooks®, there is a column titled Customer: Job. Just put the customer’s name there and the expense will be assigned to the customer.
2. To the right of Customer: Job there is a column labeled Billable. If there is a checkmark in the column the expense will automatically go to an invoice the next time you bill that customer.
3. If you use the Pay Bills system the columns are the same as in Write Checks so you have the option to enter the Customer: Job and if it’s Billable when you’re entering a bill.
It’s not complicated and it saves guesswork. You can try it yourself. If you use QuickBooks®, open the program and go to Write Checks (not the Check Register) and follow the three steps above. You’ll see how easy you can assign job costs for a project.