🛠️ QuickBooks Job Costing: The Secret to Maximizing Your Business Profit by up to 16%

Full Moon Bookkeeping is founded on a simple promise: clarity leads to growth. While many business owners think they know their profit margin, the truth often hides in the details—specifically, in accurate Job Costing.

If you're using QuickBooks Online or Desktop, you already have the powerful tools you need to stop guessing and start knowing which jobs are truly making you money. Our clients often see up to a 16% increase in profitability just by implementing this one system.

What is Job Costing, and Why Does it Matter?

Job Costing is the process of tracking all costs (direct and indirect) associated with a specific job, project, or service.

Cost Type	Definition	Example
Direct Costs	Expenses specifically tied to one job.	Materials, subcontractor labor, and permits.
Indirect Costs	Expenses necessary for the business but not easily traced to a single job.	Office rent, insurance, and administrative staff wages.

The Goal: By comparing the total cost against the revenue for that project, you discover the true profitability of every job.

Three Steps to Implement Job Costing in QuickBooks

The key to successful job costing is diligent setup and tracking.

1. Properly Set Up Your Items and Classes

• Use Items: In QuickBooks, use the "Items" list to track services, materials, and other charges. Each item should be linked to the correct Cost of Goods Sold (COGS) or Expense account.

• Activate Classes: If you run multiple lines of business or want a more detailed view, ensure Class Tracking is enabled. Assign a class to every transaction to categorize the expense.

2. Assign Expenses to the Customer/Job

This is the most critical step. Whenever you enter a Bill, an Expense, or a Check:

• In the Customer/Job field, select the specific customer or project the expense belongs to.

• Crucially, check the "Billable" box if you intend to charge this cost back to the client. This ensures nothing slips through the cracks.

3. Run and Analyze the Right Reports

The real insight comes from the data. The two most essential reports for Job Costing in QuickBooks are:

• Profit & Loss by Job: This report is your scorecard. It shows the revenue, direct costs, and net profit for every individual project you've completed. Use it to identify your most—and least—profitable service types.

• Job Progress Invoices vs. Estimates: If you bid jobs, this report helps you monitor how your actual costs are tracking against your initial estimates while the job is still in progress. This allows you to adjust your spending or client communication before the job finishes in the red.

Stop Guessing, Start Growing

Without accurate job costing, you might be busy but not profitable. You could be spending all your time and resources on projects that are actually losing you money!

Full Moon Bookkeeping specializes in setting up and maintaining QuickBooks systems for maximum profitability. We help you use job costing to:

• Refine Future Bids: Charge the right amount based on proven historical data.

• Optimize Your Client Base: Focus your efforts on the services and clients that deliver the highest returns.

• Secure Your Cash Flow: Get a clear, Moonlit Insight into where your money is going and when.

Ready to stop leaving money on the table? Contact us now.