Category Archives: Job Costing

QuickBooks Setup for Success

It’s the start of a new year and for many, this is the time to make changes to your QuickBooks before your season gets busy. Here are 4 major areas I consider when working with contractor clients: Continue reading

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Allocating Overhead by Job

Your jobs have to generate enough revenue to not only cover the job, but your overhead AND still result in a profit. So, you need to keep those “extra” costs in mind when estimating jobs. Last time, we discussed allocating at the division level (which might get done monthly or quarterly). Today we’re focusing on the job level. You can allocate overhead costs one of two ways: (1) on an account level (you would view in a P & L for the job) and (2) at the Item level (which provides more detail) – you would view these in your Estimated vs Actual Details and Job Profit Profitability Detail reports Continue reading

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Allocating Overheard Part 1

Understanding all the costs that involved with a job is important for contractors. There are the obvious ones such as labor and materials. However, you not only need to cover direct job costs but also the overhead for the business, and still net a profit (or why else be in business?!) A few areas to consider could include office staff/expenses, equipment/vehicle costs (direct and indirect like wear & tear), indirect costs (e.g. fuel), shop staff, repairs & maintenance. There are a variety of ways you can allocate overhead. Today we’ll look at the simplest and fastest method – allocating by division. I’ve broken this up into 2 parts: (1) allocating ALL your overhead expenses and (2) allocating your Indirect Costs Continue reading

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Commonly Overlooked Features in QuickBooks Part 2

I frequently see that there are features in QuickBooks that can be very useful but clients frequently are unaware of their existence or how they can help. So, today’s article takes a look at several features you might find helpful. Continue reading

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What Your Profit and Loss Is Really Telling You

Who doesn’t like to look at profit?! But I find many have misconceptions about what the Profit & Loss report (or Income Statement) can/should do for them. This is usually due to a lack of knowledge when it comes to accounting. But whether you are the business owner or the bookkeeper you should understand at least a little bit about accounting and your financial reports. So here are some basics that will help you both review your jobs or projects as well as your business. Continue reading

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Estimated vs Actual Hours

How did the actual time on the job compare to what you estimated? That’s one of the big things you want do know, right? If job costs run over, it’s usually in the area of labor, not materials. Here’s how you create it. Continue reading

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Margin vs Markup

When reviewing the job cost reports in QuickBooks and turning on the %, it’s important to know just what percentage you see in the report. Where this really jumps out is comparing the P & L for a particular job to the Job Profitability Detail report. You’ve probably noticed these percentages are not the same Continue reading

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Reports to Monitor Job Costs

You may be in the middle of your mad rush or just extremely busy right now. Either way, you have jobs in progress or already completed so it’s worth knowing just what job costing data you can pull from QuickBooks. Here are a few job cost reports to help you monitor your progress and profitability – perhaps some you didn’t know existed! Continue reading

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5 Ways to See Key Reporting with QuickBooks

You’re busy, you have information you need to see, but don’t want to spend all day getting it. Especially during your busy season! Here are 5 ways you can view multiple reports quickly Continue reading

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Tracking Vehicle and Equipment Costs

If you’re a landscaper or some other type of contractor, one of the important factors in estimating costs is recouping equipment & vehicle costs. There are 2 parts to equipment costs for jobs – what you need to cover for the cost of ownership for this piece of equipment (or vehicle or trailer) and how much it cost to use it on the job. Today let’s look at a way that might be useful in tracking the actual costs of you have a better idea in the future how to estimate. Continue reading

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