QuickBooks Online Small Business Tools
QuickBooks Online – QBO for short, has a large market share of small business owners like you who want to manage their company’s bookkeeping and payroll accounting duties. And it is a good tool for providing you with mission critical financial information for planning and running your operations.
It is a constantly evolving accounting program that includes features that will help you in your role as the business manager. If you have the QBO Small Business Plus (or higher) subscription, Projects is one of these tools. It allows you to track each customers’ job and capture all the relevant financial transactions under each project that you perform for your clients.
QBO Projects allows you to see if each job you do for a client is profitable. It can tell you how much labor cost went into the project. It allows you to assign purchases/bills to a particular job. From the proposal/estimate to the final invoice you send to your client, it is all captured under the project to give you a better picture of profitability.
3 Types of Businesses that Benefit from QBO Projects
- Contractors – General and Specialty
- Contractors can soon see how well their proposal estimates are covering costs associated with each job. You can assign your personnel to a job and track the hours spent as well as the labor costs incurred during the length of the job. The materials included in the proposal can be added through your list of vendors and bills. At the end of the job, if you are inputting the transactions assigned to the project, you will have a picture of profit or loss and can see what worked – or didn’t. Great information for you to have to keep your company profitable.
- Consumer Service Companies
- Do you provide direct services to customers like cleaning, gardening, home care, and other direct to consumer services? You too will benefit from tracking the costs and income assigned to each customer for planning and strategizing purposes. If you provide proposals and estimates to prospective customers and get the job, this level of organization can help you keep a close eye on your profitability and make necessary changes from what you learn.
- Professional Services
- Lawyers, CPAs, and other professional services can also benefit from tracking your client’s services costs and profits through QBO Projects. Billable hours tracked in the Projects feature will assist you in tracking the labor costs assignments of support staff. This will be beneficial to your business model verification processes.
Tracking and learning from each job is a benefit you should take advantage of as a QBO Plus subscriber. Businesses that will not find this form of cost accounting useful are retail operations and other inventory types of business. But for the small business service providers – the auto shops, handy-persons, house painters, and other similar operations, you will find this accounting tool a useful piece of management information to make informed planning and strategic decisions.
And don’t worry if you get stuck in setting up or using this feature in your QuickBooks Online subscription? We can help you get the most use out of this powerful feature. If you want to learn more about Projects or other QuickBooks software features, give us a call and we will help you sort it out. Your company’s success is our mission.