How to set up and use projects in QuickBooks Online

Step 1: Turn on projects: Switch on the Projects option if it isn’t already on:

• Select Settings, then Account and Preferences.
• Select the Advanced option from the drop-down menu.
• To extend the Projects portion, locate it and select Edit.
• Activate Organize all job-related activities in one location.
• Select Save and then Exit to return to your previous settings.

How to turn off projects: To disable the Projects function, you must be a primary admin:

• Select Account and preferences from the drop-down menu under Settings.
• Select the Advanced option from the drop-down menu.
• To extend the Projects portion, locate it and select Edit.
• Toggle off the green toggle option to collect all job-related activity in one place.
• After that, select Save and then Finished.

You’ll need to switch projects on if you’re using QuickBooks Online Accountant.

Turn on projects in QuickBooks Online Accountant: Please note that when you allow projects in QuickBooks Online Accountant, it’s a one-time setting that can’t be disabled:

• Choose Settings. After that, go to Company Settings.
• The Advanced tab should be selected.
• To extend the Projects portion, locate it and select Edit.
• Use project financial monitoring is toggled on.

Step 2: Create a new project:

• Select the Projects option from the drop-down menu.
• If this is your first time making it, choose to Start a Project. If you haven’t already done so, choose New Project.
• Enter the project name in the Project Name area.
• From the Customer dropdown, choose the project customer.
• In Notes, make some project-related notes or information.
• Select the Save option.

As your company takes on more work, your project list will expand. You may connect new and existing transactions to a project after it has been developed.

Step 3: Update a project with new transactions: You may explicitly add recent transactions to your projects, such as invoices, costs, and forecasts. Adding transactions to projects has no impact on how they’re classified or on your accounts. You’re marking them as part of the project so you can keep track of the profits and expenditures for that particular project.

There are two methods for adding new purchases to your account. You can make the transaction in QuickBooks just like any other. Simply choose the project name from the “Customer/Project” dropdown menu. Alternatively, here’s how to add a new transaction from inside a project:

• Select Projects.
• Select your project.
• Select the Add to project to create a new transaction.
• Select Invoice, Receive Payment, Expense, Estimate, Purchase order, Time or Bill.
• Fill out details for the transaction like you usually would.
• Select Save and close.

Are you using a current project estimate as a starting point? Before you convert them to customer invoices, add them to programmes. Progress invoicing can also be used to generate several invoices from a single calculation. Instead of asking for total payment up front, you can invoice for partial payments as the project progresses.

Step 4: Incorporate current costs into a project: If you already have billable or nonbillable expense transactions in QuickBooks, such as bills, checks, expenditures, or purchase orders, here’s how to apply them to your project:

• Navigate to Expenses.
• Find and open the transaction you want to add to your project in the Expenses tab.
• Pick the dropdown in the Customer/Project column. Then choose a project. Carry out this procedure for each cost item you choose to include in your project. This is not the same as the cost payee.

Please note that if you don’t see the Customer/Project column, go to the Expense section of your QuickBooks account and set Track expenses and items by the customer.

• Close the window after selecting Save.

Step 5: Add existing timesheets to a project: If timesheets aren’t billable but you also want to apply them to a project to figure out how profitable it is, you can do so in the Weekly Timesheet.

• With the Weekly Timesheet Select + New, you can add existing timesheets to a project.
• Select Weekly Timesheet from the dropdown menu.
• Choose the employee or supplier whose timesheets you’re attaching to the project from the dropdown.
• Choose the correct week for the timesheets you’re adding to the project from the date range dropdown.
• Locate the appropriate timesheets. Then pick the project from the Customer or Project dropdown.
• Select the Save option.

Please note that If you have timesheets that have been marked as billable, you can use them to generate an invoice.

Step 6: Add existing invoices to a project: Adding new invoices to a project is easy (see phase 3), but editing existing invoices, particularly those linked to a payment, requires a little caution. Here’s how to include previous invoices in your project.

Step 7: Track your labour costs: You can enter the hourly cost rate for each employee, and QuickBooks can measure the labour costs by multiplying the hourly cost rate by the number of hours worked.

Step 8: Keep everything running smoothly: Now that you know how to track project costs and income, here’s how to double-check your calculations:

• Using the income and expense columns as a reference in the Overview tab. When you add invoices, expenditures, and weekly timesheets, make sure the right column total increases. If you’ve set up hourly cost scales, you can see these costs on the Time Activity tab or the Time cost by employee or supplier report.
• The Time Activity tab organises the work of your team by date. It also shows you the overall cost of each employee and the service you provide, allowing you to keep track of the costs associated with various aspects of your project.
• The Transactions tab displays all of a project’s transactions. You may perform tasks such as converting an estimate to an invoice right from this screen.
• Each month, review the Time Cost through Employee or Supplier reports. Make sure you’ve documented all project-related work hours correctly. Your benefit totals would be misleading if you are missing hours or counting too many.