Understanding Projects in QuickBooks Online
If you manage multiple jobs, clients, or business ventures, keeping track of income, expenses, and profitability for each one can quickly get messy. That’s where Projects in QuickBooks Online come to the rescue.
Projects is a built-in feature in QBO designed to help you organize all your job-related transactions in one place, giving you a clear picture of each project’s financial health. Whether you’re a contractor, freelancer, or small business owner, learning how to use Projects can make your bookkeeping much easier and your insights much sharper.
💡 What Are Projects in QuickBooks Online?
Projects in QBO allow you to track all the financial activity — income, expenses, time, and labor costs — for a specific job, client, or initiative.
Think of a Project as a financial folder that gathers everything related to that job. You can link invoices, bills, expenses, estimates, payments, and time entries directly to a project.
This makes it simple to answer key questions like:
How much did this job cost me?
How much revenue did it generate?
What’s my profit margin for this project?
🧭 Why Use Projects?
Here are some top benefits of using the Projects feature:
Better Job Costing: See exactly how much you’re earning or losing per project.
Centralized Tracking: All income and expenses for a specific job live in one dashboard.
Simplified Reporting: Quickly view profitability and performance reports.
Time Tracking Integration: Bill for time directly from projects if you use QuickBooks Time or the time tracking feature.
Smarter Decisions: Know which jobs are most profitable — and where you’re overspending.
⚙️ How to Set Up and Use Projects in QuickBooks Online
Step 1: Turn On the Projects Feature
Go to Settings ⚙️ → Account and settings.
Select the Advanced tab.
Find the Projects section and toggle it On.
Click Save and then Done.
Step 2: Create a New Project
In the left-hand menu, go to Projects.
Click New Project.
Enter a Project name, choose the Customer, and add any notes.
Click Save.
Step 3: Add Transactions
Once your project is set up, you can add:
Invoices or Estimates for the client.
Expenses and Bills related to materials, labor, or travel.
Time entries if you track time in QBO.
Payments when clients pay invoices.
All these transactions are automatically tied to that project.
Step 4: Track Progress and Profitability
Go to the project’s dashboard to view:
Income (from invoices and payments)
Costs (from expenses and time)
Profit margin (Income – Costs)
You can also view reports such as:
Project Profitability
Unbilled Time and Expenses
Non-billable Time
📈 Tips for Using Projects Like a Pro
Use classes or locations along with projects for more granular reporting (optional).
Attach receipts or documents to expenses for better recordkeeping.
Regularly reconcile project data to ensure accuracy.
Archive completed projects to keep your dashboard clean.
