This tutorial will take you step by step through many of the features of the MoneyWorks job costing module. It is assumed that you are familiar with MoneyWorks before you start—if not, you should work through the MoneyWorks Tutorial.
An Overview of Job Costing
If you are an architect, graphics designer, mechanic, lawyer, builder or similar your income is derived primarily by selling your skills and time. In order to maximise your income, you need to manage and record the time you spend on specific projects or for specific clients.
In addition to time, you may have incurred direct expenses in completing the work (courier charges, parts, subcontractors and more). You will want to recover these expenses from the client when you bill them, or, if you have provided a fixed quote for the work, you will want to check that you have made a profit when the job is completed.
The job costing within MoneyWorks allows you to keep track of time and disbursements, and if necessary automatically invoice these.
Turning on Job Costing
We’ve assumed that you are familiar with MoneyWorks and have the Acme Widgets Tutorial file open. Because not every business needs job costing, it is disabled by default and needs to be turned on.
To turn the job costing features on:
- Choose Document Preferences from the Edit menu
The MoneyWorks preferences window will open. This contains a number of options that allow you to set MoneyWorks to work in the manner that best suits your operations.
- Click on the Jobs tab
The Preferences window will be shown.
- Turn the Enable Job Costing and Time Billing check box on
The Default Markup and Work-in-Progress Account fields in the window will be enabled:
Default markup Goods or services purchased specifically for a job are often charged out at a higher rate than what was paid for them. You specify a default markup to use here—you can override this later for specific jobs.
Default Work-in-Progress account At the end of the financial year (and indeed, possibly at the end of each month), you will want to know how much work you have done that has not yet been charged for. MoneyWorks can calculate this work-in-progress amount for you, and transfer it into a nominated account.
- In the Default markup field type “20”
The markup will be 20% unless otherwise specified.
- Type “5600” into the Default Work-in-Progress account field
This is the work-in-progress account code for Acme Widgets.
- Click the OK button
The preferences window will close.
The job costing has now been enabled and can be used.