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Job Cost Coding

 
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Old 04-21-2015, 06:48 PM   #1
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Job Cost Coding


I am working on a setting up job costing in QB using an items list and looking for any suggestions or methods others have used. I am thinking of combining both the standard # systems of contractors (1000 General Requirements 2000 Existing Conditions..exc,,) and a accounting system to identify whether it is service, labor or materials. It needs to work both for job costing and my accounting.

So far I am looking at the following example: not necessarily those numbers though.

2010: Main category (demolition)
2011:Sub category (walls)
Sub Sub category (labor, service, materials)
2011.01: labor=my employees
2011.02: service=outside services (maybe a labor finders company)
2011.03: materials=trash cans, equipment rental

Benefits: All accts ending in 0 would indicate a invoice account and only used for billing; all accts ending in 1, 2, 3 indicate the respective type and used only in job costing. Also it is effective and clean on accounting reports.

What methods do you use/have used that you found work for both construction and accounting that are fairly easy to follow?
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Old 04-21-2015, 10:32 PM   #2
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Re: Job Cost Coding


Quote:
Originally Posted by showmanmd View Post
I am working on a setting up job costing in QB using an items list and looking for any suggestions or methods others have used. I am thinking of combining both the standard # systems of contractors (1000 General Requirements 2000 Existing Conditions..exc,,) and a accounting system to identify whether it is service, labor or materials. It needs to work both for job costing and my accounting.

So far I am looking at the following example: not necessarily those numbers though.

2010: Main category (demolition)
2011:Sub category (walls)
Sub Sub category (labor, service, materials)
2011.01: labor=my employees
2011.02: service=outside services (maybe a labor finders company)
2011.03: materials=trash cans, equipment rental

Benefits: All accts ending in 0 would indicate a invoice account and only used for billing; all accts ending in 1, 2, 3 indicate the respective type and used only in job costing. Also it is effective and clean on accounting reports.

What methods do you use/have used that you found work for both construction and accounting that are fairly easy to follow?
What type of reporting are you trying to accomplish?

Why is it important to break a demolition job into categories i.e. walls, etc.?

I don't think QB is the place for breaking jobs down into multiple categories because I believe QB is too cumbersome.

I don't use QB at all, but I think QB may be great for tracking money coming in and out, for check writing and taxes. For breaking jobs into multiple tasks I would try the software below, or develop your own spread sheet.

There are thousands of software programs on the market and many for free, but I find that entering data is too cumbersome and most people don't have the stamina to do the data entry for a long period of time.

I would rather use 5 or 6 simple software programs that are very specific for each of my needs vs. trying to use one monster program that I need to go to school to learn how to use and I will never master.

Or...maybe I am wrong!

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Old 04-22-2015, 03:00 PM   #3
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Re: Job Cost Coding


I use a similar system in quickbooks
mine are 01000 02000 03000 etc. top level with sub categories 01001-01999 etc

This works well for me
for example fixings are 07000, 07001-07099 are nails 07100-07199 are screws etc. it makes searching easier as i can remember the thereabouts number so the 1st 3 digits narrows down the search pretty quick
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Old 04-22-2015, 05:13 PM   #4
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Re: Job Cost Coding


My background is accounting and I am vey experienced with QB so that aspect isn't a problem for me. Ive used intricate software such as Aegis in the past and find QB to have overall the best options for what I am looking for. Im finding it necessary to break out between the 3 categories for accounting purposes as to not screw up the balance sheets for the accountant. I mainly need it for labor so I can get accurate labor cost which would include any payroll taxes, WC & GL associated with that particular job which tend to get missed. Especially with cost plus projects.

Carpenter Uk: what do you point your items to? Is it just a COGS account or do you break it out into multiple ones?
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Old 04-23-2015, 04:06 PM   #5
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Re: Job Cost Coding


For purchases I have 3 Cog accounts - Labour materials & fixings
and the same on the revenue side
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