How to use projects in QuickBooks Online
How to Use Projects in QuickBooks Online: A Comprehensive Guide
Managing multiple projects simultaneously can be challenging, especially when it comes to tracking expenses, labor costs, and profitability. QuickBooks Online (QBO) offers a robust feature called Projects that enables businesses to manage and monitor the financial health of each project in real time.
In this guide, we’ll walk you through how to set up and use the Projects feature in QuickBooks Online, so you can streamline your operations, track costs more effectively, and make smarter financial decisions.
What Are Projects in QuickBooks Online?
The Projects feature in QBO lets businesses track income, expenses, and overall profitability by individual project. It’s designed for businesses like contractors, freelancers, and agencies that want detailed financial insights into specific jobs or engagements.
By linking transactions—like invoices, expenses, and billable hours—to specific projects, you can view detailed profit and loss reports for each initiative.
How to Enable the Projects Feature in QuickBooks Online
Before you can use Projects, you must enable it:
Click the Gear icon ⚙️ in the upper-right corner.
Go to Account and Settings.
Navigate to the Advanced tab.
Find the Projects section and click the pencil icon ✏️.
Toggle the switch to On, then click Save.
Note: Projects are only available in QuickBooks Online Plus and Advanced plans.
Creating a New Project
Once enabled, here’s how to create a new project:
In the left-side menu, select Projects.
Click New Project.
Enter a Project Name.
Assign it to an existing Customer.
(Optional) Add a Start and End Date.
Click Save.
If you're converting from using sub-customers, QuickBooks allows a one-time conversion of sub-customers into projects.
Adding Transactions to Projects
To properly track a project’s financials, assign all related transactions:
Invoices & Sales Receipts: Select the project from the customer drop-down list.
Bills & Expenses: Link expenses to the project to ensure accurate job costing.
Time Tracking: Use QuickBooks Time or integrated apps to log hours to a project.
If time entries are billable, be sure to check the Billable box so you can invoice your client appropriately.
Tracking Project Profitability
QBO provides real-time tracking of:
Income and Expenses specific to the project.
Time Spent and Labor Costs (if integrated with time tracking).
Project Profitability Reports, comparing income to expenses.
You can access these under the Projects dashboard, which offers a quick overview of active projects and their financial performance.
Advanced Project Features (QBO Advanced)
QuickBooks Online Advanced users can take advantage of additional tools:
Estimate vs. Actual Reports: Compare projected and actual costs.
Progress Invoicing: Bill customers in phases based on work completed.
Work-in-Progress Reports: Track job stages and performance over time.
Best Practices for Project Management in QBO
Use clear naming conventions for each project.
Enter expenses promptly and tag them to the right project.
Schedule regular reviews using profitability reports.
Use classes and locations to gain deeper insights if needed.
Q&A: QuickBooks Projects FAQ
Who should use the Projects feature in QuickBooks Online?
A: This feature is ideal for service-based businesses, freelancers, agencies, and contractors who want granular financial control over each job or client project.
Can I convert existing customers or sub-customers into projects?
A: Yes, QuickBooks allows you to convert sub-customers into projects. However, this action is permanent.
What types of reports are available for Projects?
A: You can generate profit & loss by project, unbilled time, estimate vs. actual, and more.
Can I assign time tracking entries to a project?
A: Yes, but you’ll need to enable time tracking or integrate QuickBooks Time. Ensure each entry is linked to the right customer/project.
Are Projects available on all QuickBooks plans?
A: No, they’re only available on QuickBooks Online Plus and Advanced.
Let Brecken Business Solutions Help You Streamline Your Projects
If you’re managing multiple jobs, clients, or projects, the Projects feature in QuickBooks Online can transform how you handle bookkeeping and profitability tracking.
At Brecken Business Solutions, we specialize in helping small businesses and contractors set up and optimize QuickBooks Online — including configuring Projects, time tracking, and job costing reports.
👉 Ready to simplify your bookkeeping and get clarity on your project finances?
Contact us today to schedule a consultation and let us help you get started the right way.
