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How do I track projects in QuickBooks Online?

Start by enabling Projects in your account settings. Go to Settings, then Account and Settings, then Advanced. Look for the Projects section and turn it on. Once enabled, you’ll see a Projects option in your left navigation menu.

Each project ties to a customer. When you create a new project, you select which customer it belongs to. If you do multiple jobs for the same client, each becomes a separate project under that customer’s name. This structure works well for contractors, consultants, agencies, and anyone else doing distinct engagements for repeat clients.

The key to useful project tracking is assigning every transaction. When you enter an expense, bill, invoice, or time entry, select the project in the Customer/Project field. Income shows as project revenue. Expenses show as project costs. The difference is your profit margin on that specific job.

Run the Project Profitability report to see how each project is performing. You can view total income, total costs, and the resulting margin. QBO also shows unbilled time and expenses, which helps when you need to invoice for reimbursables or catch time that hasn’t been billed yet.

Projects works best when your work has clear start and end points. Construction jobs, marketing campaigns, consulting engagements, and event planning all fit naturally. If you’re doing ongoing monthly services without discrete projects, you might find Classes or Tags more useful than the Projects feature.

The biggest reason project tracking fails is inconsistent transaction assignment. You enter expenses but forget to select the project. You wait two weeks to categorize things and can’t remember which job the materials were for. By the time you run reports, half your costs are sitting in “unassigned” and your profitability numbers mean nothing. Assign transactions the same day they happen.

Projects is available in QBO Plus and Advanced, not in Simple Start or Essentials. If you’re on a lower tier and can’t upgrade, you’ll need to track jobs using sub-customers or Classes instead. Both approaches work but require different report configurations.

For businesses doing complex job costing, Projects provides a starting point but may not be enough on its own. Construction companies often need to separate labor, materials, and subcontractor costs within each project. That requires combining Projects with a properly structured chart of accounts and possibly QBO setup that accounts for how you actually estimate and bid work.

If your project tracking isn’t giving you useful profitability data, the issue is usually setup or discipline rather than the software itself. A bookkeeping service familiar with project-based businesses can configure your file correctly and build workflows that make consistent tracking easier to maintain.

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More Questions

How do I know if my bookkeeper is doing a good job?

Look for reconciled accounts, timely reports, and accurate categorization. The real test is whether you trust your numbers and whether tax time goes smoothly.

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What QuickBooks reports should I run monthly?

At minimum, run the Profit and Loss, Balance Sheet, and Cash Flow Statement every month. Add A/R and A/P aging reports if you invoice customers or have vendor bills. The key is actually reviewing them, not just generating them.

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What payroll records do I need to keep?

Federal law requires keeping payroll records for at least four years. This includes employee information, timekeeping, wage payments, and tax filings. California adds stricter requirements for itemized wage statements.

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How do I track equipment costs by job?

Equipment costs fall into three categories that each require different tracking. Rentals go directly to the job. Owned equipment uses an hourly or daily rate. Small tools can be direct-charged or treated as overhead.

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How do I track business expenses properly?

Separate business and personal finances completely, record expenses promptly with the right category, and save receipts digitally. Reconcile your accounts weekly to catch mistakes while you still remember what happened.

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Can a bookkeeper help me with taxes?

Most bookkeepers don't file tax returns, but they help with taxes in ways that matter more than the actual filing. Clean books mean accurate deductions, faster tax prep, and records that survive an audit.

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