Using QuickBooks for Job Costing and Rent Rolls with Classes

When managing finances for contracting projects or rental properties, keeping track of costs and income accurately is essential. QuickBooks offers powerful tools to help you organize your financial data, especially through the use of classes. This post will guide you through how to use QuickBooks for job costing if you are a contractor, or for managing rent rolls if you operate rental property companies. I will explain how classes can simplify your accounting and improve your financial insights.

Understanding Job Costing and Rent Rolls in QuickBooks

Job costing is a method contractors use to track expenses and revenues for individual projects. It helps you see if a job is profitable and where costs might be running over budget. Rent rolls, on the other hand, are lists of rental properties or units, showing income and expenses for each. Rental property companies use rent rolls to monitor cash flow and profitability per unit or property.

QuickBooks allows you to assign classes to transactions. Classes act like tags or categories that help you separate financial data by job, property, or any other segment you want to track. This makes it easier to generate reports that show income and expenses by class, giving you a clear picture of each job or rental unit’s financial performance.

Using classes for job costing or rent rolls means you don’t have to create separate accounts for every project or property. Instead, you can keep your chart of accounts simple and use classes to break down your data.

QuickBooks job costing report on screen

Using Classes for Job Costing in Contracting

When you enter expenses or income related to a job, assign the appropriate class. For example, if you buy materials for Job A, assign the class “Job A” to that expense. When you invoice a client for Job A, assign the same class to the invoice.

This way, all transactions related to Job A are grouped together. You can then run reports to see total income, expenses, and profit for Job A.

Practical Tips for Job Costing

• Assign classes consistently: Make it a habit to assign classes to every transaction related to a job.

• Use subclasses for phases: If a job has multiple phases (e.g., design, construction, finishing), create subclasses to track costs by phase.

• Review reports regularly: Use the Profit and Loss by Class report to monitor job profitability.

• Track labor separately: Consider using service items linked to classes to track labor costs by job.

  
  

Contractor desk with QuickBooks invoices

Managing Rent Rolls with Classes in QuickBooks

For rental property companies, classes help you track income and expenses by property or unit. Assign the class for each property or unit to rent payments, maintenance costs, utilities, and other expenses.

This approach lets you generate rent roll reports that show:

• Total rent collected per property or unit.

• Expenses incurred per property or unit.

• Net income or loss per property or unit.

  
  

How to Use Classes for Rent Rolls

• Assign a class to each rental property or unit.

• When entering rent payments, assign the class for the unit.

• Assign classes to expenses like repairs, property management fees, and utilities.

• Use the Profit and Loss by Class report to see financial performance by property.

  
  

This method helps you identify which properties are most profitable and where you might need to reduce costs.

Best Practices for Using Classes in QuickBooks

To get the most out of class tracking, follow these best practices:

• Keep your class list organized: Use clear, consistent names for classes.

• Limit the number of classes: Too many classes can make reports confusing. Group similar jobs or units if needed.

• Use reports to make decisions: Regularly review class reports to identify trends and opportunities.

• Integrate with other QuickBooks features: Combine classes with items, customers, and vendors for detailed tracking.

  
  

Using QuickBooks for job costing or rent rolls with classes can transform how you manage your finances. It provides clarity and control, helping you make informed decisions that boost profitability.

Enhancing Your Financial Management with Expert Help

If you want to maximize the benefits of QuickBooks for your contracting or rental property business, consider working with a trusted partner. WRM Accounting and Consulting specializes in QuickBooks bookkeeping and can help you set up class tracking tailored to your needs. Their expertise ensures your financial data is accurate and actionable, helping you grow your business in the Western Pennsylvania and Pittsburgh area.

By using classes effectively, you gain a powerful tool to understand your finances better and improve your bottom line. Start today by enabling class tracking in QuickBooks and organizing your jobs or rental units into classes. You will soon see the difference in your financial reporting and decision-making.

If you want to learn more about how to use QuickBooks for your business, visit WRM Accounting and Consulting for expert guidance and support.