How to Use Projects in QuickBooks Online (QBO): A Complete Guide for Small Businesses
If your business manages multiple clients, jobs, or events simultaneously, it can be tough to track how profitable each project really is. That’s where the Projects feature in QuickBooks Online (QBO) comes in.
QuickBooks Online Projects is a powerful tool that helps small business owners track income, expenses, labor costs, and profitability at the project level. Whether you're a contractor, consultant, or creative professional, Projects lets you see exactly how each job is performing.
In this guide, we’ll walk through what QBO Projects is, how to set it up, how to use it effectively, and how Brecken Business Solutions can help you make the most of it.
What Is the Projects Feature in QBO?
Projects is a feature in QuickBooks Online Plus and Advanced that lets you organize all your transactions including invoices, expenses, payments, and timesheets under specific jobs or customers.
This feature enables you to:
Track income and expenses per project
Monitor project profitability
Keep budgets under control
Consolidate time and labor costs
Generate detailed project reports
Benefits of Using Projects in QBO
1. Centralized Tracking
All transactions related to a project time, expenses, sales, and payments are tracked in one place.
2. Real-Time Profitability Insights
Get an instant view of how much you’re making or losing on each project.
3. Smarter Budgeting
Compare estimated costs with actuals and keep spending under control.
4. More Accurate Job Costing
Assign every billable hour or vendor payment to a project to understand the true cost.
5. Easier Reporting
Use project-specific reports to see profitability, unpaid invoices, and time tracking.
How to Enable Projects in QuickBooks Online
Go to the Gear icon (⚙️) in the top right corner of QBO.
Select Account and Settings.
Click on Advanced.
Scroll down to Projects and toggle it to “On.”
Click Save and Done.
Once enabled, a Projects tab will appear on your left-side navigation menu.
How to Create and Use a Project
Step 1: Create a Project
Go to Projects on the left menu.
Click the green New Project button.
Enter the project name and select a customer.
Click Save.
Step 2: Add Transactions
Add new invoices, expenses, bills, and time entries directly to the project.
Assign transactions to a project when you create or edit them.
Step 3: Track Time (Optional)
If your team tracks time, link time entries to specific projects.
Use QuickBooks Time (formerly TSheets) for integrated time tracking.
Step 4: Review the Dashboard
View the project dashboard for a summary of:
Total income
Total costs
Gross profit
Open invoices
Unbilled time and expenses
Step 5: Run Project Reports
Choose from reports like Project Profitability, Time Cost by Employee, or Unbilled Time and Expenses.
Q&A: Using Projects in QBO
Q: Can I use Projects with QuickBooks Online Simple Start or Essentials?
A: No. Projects is only available in the Plus and Advanced subscription tiers.
Q: What happens if I forget to assign a transaction to a project?
A: It won’t be reflected in your project reports. Always double-check your entries.
Q: Can I track labor costs in Projects?
A: Yes. You can assign time entries and payroll expenses (if using QuickBooks Payroll) to projects.
Q: How do I know if a project is profitable?
A: The dashboard and Project Profitability Report will show income vs. expenses so you can see net profit.
Q: Can I archive or delete finished projects?
A: You can mark them as inactive once they’re done, which removes them from active views but preserves the data.
Tips for Getting the Most Out of QBO Projects
Use consistent naming conventions to avoid confusion.
Train your team on tagging expenses and time entries properly.
Review dashboards weekly to catch issues early.
Set budget estimates and compare them to actual costs.
Regularly invoice for time and expenses to avoid cash flow gaps.
How Brecken Business Solutions Can Help
At Brecken Business Solutions, we help small businesses take full advantage of QuickBooks features like Projects.
Whether you’re just getting started with QBO or need help cleaning up a messy project history, we offer:
QuickBooks setup and optimization
Project tracking and job costing
Bookkeeping support and reporting
Payroll integration and time tracking
Let us help you track your projects with confidence and understand your numbers clearly.
Call to Action
Want to start using Projects in QBO but not sure where to begin?
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