[Question] Job Costing (sortof)

[Office Goddess]

I have been requested to track expenses BACKWARDS in QB. By this, I mean I set up a budget for a specific job of (for example) $10k and reduce the amount available as expenses are incurred - similar to a retainer account, but not linked to a) an income account or b) a bank account (there are no actual $ involved).

Is there a way to set this up LIKE a retainer account to track remaining available budgeted funds or am I better off to just track this in Excel?

[Tomekia Lloyd]

Hi,

If the funds come from a customer, you can create a short term liability account.

As expenses are paid, the balance can be reduced.

Are you using QB Contactor Edition?

[Tomekia Lloyd]

Better Yet,

I found more detailed instructions for your reference.

As you pay the expenses to your vendors, don't forget to job cost them to your customer (job) for later invoicing and reduction of their prepayment.

https://accountant.intuit.com/collea.../qb-prepay.pdf

[Office Goddess]

This is NOT for prepayment accounts - I have a retainer liability account set up for that. There is no actual money involved in the tracking.

This is strictly to give a project manager a set amount they can use to complete the job and to be able to track how much of that budget is left.

[BookkeeperSC]

Why not set up a budget for that job? This will allow you to set a budget amount and then as the actual expenses are incurred you can do a Budget vs Actual report and see exactly how much is left. It is even broken down by month.

This should accomplish what you are needing if I am understanding you correctly. Hope this helps.

Melissa

[Office Goddess]

I considered doing a budget but I don't need the full breakdown - just a 'remaining balance' kind of thing and the budgets are complete overkill when only a single line item is needed (and not even by month, etc. - just a remaining balance). I think I'll just run an excel spreadsheet; it seems like that will be the least complicated method.

Thanks for all the input, though!

[BookkeeperSC]

No problem. A spreadsheet will do the trick.

Have a great weekend!

[CJ's Virtual Business Solution]

Lily,

It's a lot easier to do in EXCEL. I think you can import EXCEL into QB if that's the program they prefer. You might check you program or the QB website to see if that's doable.

I tried doing a backward accounting one time and it didn't work. I talked the client into EXCEL. He was just a happy. Only reason he wanted to use QB is he has just read about it and thought it would be his "miracle program."

Carol
CJ's Virtual Business Solutions

[Tomekia Lloyd]

Oops, sorry. I misunderstood what you were trying to do.

yes, I agree with Melissa. Doing a budget for the specific job is your best bet. It may be more accurate and quicker than importing or copy pasting expense items into excel.

However, the one that is easiest for you is the way to go.