Simple Guide to Implementing Job Costing for Payroll Expenses in QuickBooks 2018

SMBs and other mid-sized businesses have taken a breather after the time when Intuit, the designer of QuickBooks, declared the implementation of the cloud in the QuickBooks software suite. For the enterprise industry, the time is no less than a revolution period where most of the SMBs had the opportunity to cut down on unwanted IT expenses. Intuit, the leader in wiser decisions and strategies, chose third parties for server-like needs and soon succeeded in naming cloud network management platforms like QuickBooks server. Presumably, the main vision of handing over hosting related tasks to third parties is to boost your future projects and focus on the goals with precision.

Many companies today are incapable of deciphering the real aspects of profitability, which in turn makes it difficult for companies to earn well. However, Job Costing is the precise way to know the exact pay for each job and is therefore very popular among task-based companies. SMEs and even large companies consider job costing to be one of the most intact ways to reduce unnecessary wages that a company asks to pay its employees in exchange for the work they have done. Construction companies, professional service providers and other non-profit organizations are the main sectors that can obtain the pure benefit of the labor cost.

Steps to set up QuickBooks Job Costing and Item Track paycheck Expenses!

To get the full benefits of the labor costing function within your business facility, you must first find all the difficult work that is needed by your business requirements, but does not necessarily require a full-time worker. Then, identifying the jobs that aren’t as profitable for your business could also help determine where all the profits are really going.

However, these are the quick steps with which you can also start a smart labor cost strategy within your business.

1. Choose “Edit” in the top menu bar and then click “preferences”.
2. Select “Accounting” in the open panel on the left.
3. Then click on the “Company Preferences” tab.
4. Make sure the Use Class Tracking box is checked and click “OK”.

Note: By mistake, if the checkbox remains unchecked, the options to assign a class for the entire paycheck or earnings element will not be available.

5. Similarly, review step 1 and select “Payroll & Employees.”

6. Then, place the check mark in the Job Cost box and click “OK.”

7. Also, check the check for classes and items for paycheck expenses and decide how you want to track it via Paycheck Complete or Earnings Item.

It is equally important to note that whenever you create or edit payroll items in the QuickBooks software, a “Track Expenses” checkbox is displayed on the desktop. By selecting this check box, the QuickBooks desktop changes all items on employee paychecks the same way it does the taxes paid by the company.

Quick Points to Remember When Implementing Job Costing in QuickBooks

• Commitment to understand the advantages labor cost will bring to your business.
• Enabling Estimates in your QuickBooks software and also by selecting Yes under “Create estimates?” and “Do you use progress billing?”.
• Expense Account Assignment to subcontractor items to make searching for working hours easy and hassle-free.
• create jobs for your business by noting each and every expense you have to pay while serving customers.
• Using Estimates and Progress Billing to change orders correctly and consistently right after problems are known.

Without asking for additional expense and effort and by integrating with ongoing accounting software, job costing allows you to reap the rewards of enabling cost tracking for manufacturing jobs and saves you the lengthy calculation process.