Likewise, job cost items should reflect the costs you incur during the course of your jobs and allow for ease of payable entry. They should be coded to the revenue lines on the income statement to which they most closely belong. Revenue items should reflect the services that you provide and allow for ease of invoicing. Setting up items and coding revenues and expenses: To assign job costs properly, set up your item list to include revenue and expense items necessary for accurate reporting. The software also allows you to include job details like status, start date, projected completion date and other information. You can also set up sub jobs if you expect to perform multiple jobs for that customer in the future. Create a customer job if that’s the only work you will be performing for them. Setting up jobs in QuickBooks: QuickBooks allows you to set up customer jobs and sub jobs. Additionally, make sure your chart of accounts includes the revenue and cost of goods sold accounts you want to see when running reports. This allows you to set up the jobs to which you’ll code your expenses and apply payroll to those jobs (if you are using QuickBooks payroll). From the Preferences menu, you must enable job costing, items and payroll class and item tracking. Setting up your QuickBooks file for job costing: You will need to enable several settings. QuickBooks Enterprise Edition also offers WIP tracking and committed cost tracking. It’s specifically tailored to general contractors and offers unique tools and reports that are not included in other editions. Selecting the proper version of QuickBooks: While basic job costing can be done in almost any version (including QuickBooks Online), the best one currently available for contractors is QuickBooks Desktop Premier Contractor Edition. There are five key steps to setting up your QuickBooks file for successful job costing. QuickBooks Desktop, a valuable toolbox for job tracking and organization, can help you maximize profitability and create better efficiencies. Doing so also provides you with a clear understanding of work in progress (WIP). Contractors need to carefully track jobs to understand their individual job profitability.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |