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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

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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What is job costing for construction companies?

Job costing tracks every expense by individual project rather than lumping costs into general categories. It shows you exactly which jobs make money and which ones lose it, so you can bid smarter and catch overruns before they drain your profits.

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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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How do I know if my books are accurate?

Start with bank reconciliation. If your accounts match your statements to the penny, that's the foundation. Then check that balance sheet accounts reflect reality and your profit numbers match how the business actually performed.

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How do I account for short-term rental income?

Track gross rental income from each booking, not just the net payout you receive. Platform fees, cleaning fees, and TOT collected all need to be recorded separately so your books reflect the true economics of your rental.

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What is the chart of accounts and how do I set one up?

A chart of accounts is the list of categories where your business transactions get recorded. Most accounting software includes a template based on your industry, so you customize that rather than building from scratch.

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Fresh Ledger provides full-service bookkeeping for San Diego County's small businesses. We handle monthly financials, payroll setup, and part-time CFO services for local business owners who want their numbers done right.

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