Job Cost Setup and Reports.....

The term "Job Cost" is somewhat misleading. Actually, a more accurate term would be Sales Cost.

Think of Job Costing in terms of Gross Profit per Sale.  Many QuickBooks users can identify their Gross Margin per Sale, but very few know, or even understand GROSS PROFIT.

Gross Profit is the dollars left over after paying ALL of the costs of making a sale.  This of course would include any costs of goods, but just subtracting the cost of goods would only give you your Gross Margin.  To calculate Gross Profit, ALL other costs related to the sale must be subtracted from Gross Margin.  These could include Labor, Payroll Burden for Labor, Subcontractors, Commissions, Fees Paid to accept a Customer's Credit Card Payment, Packing Materials, Shipping, Sales Wages (you don't need a salesperson unless they're making sales), and many more business specific costs. Here is a sample job cost report:

Accurate Job Costing requires a properly set up item list coordinated with your Chart of Accounts

If set up and used properly, the QuickBooks Item List can dramatically improve and simplify your company's operations, which inevitably improves your Owner Return.  Unfortunately, we have found very few users that actually understand how to create, maintain, and use their item list.  Our fee to create an accurate item list is $45 per hour.  Smaller lists can be very inexpensive.  We also offer an option to train you or a member of your staff to create your own item list.

As for the Chart of Accounts, we strongly suggest that you consider using our Custom Management Chart of Accounts as it results in reports that a non-accountant can easily understand.