Job Costing in FreshBooks

How to Track Project Costs Clearly and Improve Your Profit

Every project is different and every job has its own materials labor and unexpected expenses. Job costing is the key to understanding whether each project is making money. FreshBooks makes job costing simple even if you are not an accountant which is why many contractors designers consultants and service providers rely on it.

This guide explains how job costing works in FreshBooks and how it can improve decision making and profitability.

What Job Costing Means and Why It Matters

Job costing is the process of tracking all the income and expenses related to a specific project. This helps you know how much a job actually costs and how much profit it brings in.

Without job costing you might think a project went well only to discover later that you actually lost money because of underbilled hours or unexpected material costs. FreshBooks helps you avoid these surprises.

How FreshBooks Makes Job Costing Simple

FreshBooks allows you to track everything connected to a job in one place.

Here is how it supports clear and accurate job costing.

Project based organization
You can create individual projects for each job and attach hours expenses and invoices to them.

Time tracking for every team member
Hours are recorded accurately so you always know the true labor cost.

Expense tagging
Materials tools subcontractors and travel can all be linked to a specific job.

Easy reporting
FreshBooks shows you project profitability so you instantly see which jobs perform best.

This creates a complete picture of your job costs without complicated spreadsheets.

Why Job Costing Improves Your Business

When you start tracking each job clearly you gain insights that help your business grow.

You spot which projects are profitable

Some jobs look great on the surface but the numbers tell a different story. FreshBooks shows you exactly which projects are worth repeating and which ones need price adjustments.

You price future jobs correctly

With accurate cost information you can create estimates that actually reflect the real work involved. This reduces stress and ensures you are paid fairly.

You manage labor more effectively

Time tracking reveals where your crew or your own hours are going. This helps you understand productivity and prevent underbilling.

You identify cost patterns

If materials or subcontractor fees rise you will see it right away rather than months later.

Combining FreshBooks Job Costing With Professional Bookkeeping

FreshBooks provides the tools but a bookkeeper can help you get even more out of them.

A bookkeeper can

Set up job costing categories that match your industry
Review your projects each month
Spot missed expenses or time entries
Help you analyze true project profitability

This partnership ensures that your job costing system stays accurate and useful.

Job Costing Helps You Build a Stronger More Profitable Business

When you know the real cost of every project you can make smarter decisions raise prices when needed and focus on the work that gives you the best return. FreshBooks makes job costing simple and a bookkeeper makes it even more powerful.

A clear picture leads to a more profitable business.

Ready to Improve Your Job Costing in FreshBooks

If you want help setting up job costing or understanding your project profitability reach out to us below and we will be happy to support you.