How do I track materials and supplies by job?
The key to tracking materials by job is capturing the information at the point of purchase. If you wait until the end of the month or rely on memory, you’ll end up with a pile of receipts that could belong to any number of jobs.
When you buy materials, write the job name or number directly on the receipt before you leave the store. Some contractors use a stamp, others just write it in marker. The method doesn’t matter as long as every receipt gets tagged immediately. That $400 at Home Depot means nothing without knowing which job it was for.
If you have supplier accounts, set up job references with your vendors. Most building supply companies can tag purchases to specific job numbers when you order. This creates documentation at the source and makes reconciliation much easier. When the monthly statement comes in, materials are already sorted by job.
Mixed purchases need to be split. If you buy materials for two jobs in one trip, separate them at checkout or note the split on the receipt. A single receipt covering multiple jobs creates allocation problems later. Better to run two transactions or be very clear about what goes where.
In QuickBooks, use the Projects feature or Class tracking to assign expenses to specific jobs. Every material purchase gets coded to both an expense category and a job. This lets you pull reports showing total materials cost per job, which is what you need for construction job costing.
Cost codes add another layer of detail. Instead of just “materials,” you might track concrete, framing lumber, finish materials, and fixtures separately. This granularity helps you understand where costs are running high and improves your bidding accuracy on future jobs.
Leftover materials create complications. If you buy 20 sheets of plywood and use 15 on Job A, the remaining 5 shouldn’t stay coded to Job A when you use them on Job B. Either adjust the original expense or track leftover materials in a separate account and expense them when they’re actually used. Most contractors don’t bother with this level of precision, but on larger jobs the numbers can add up.
The payoff for tracking materials by job is knowing your actual profit on each project. Generic bookkeeping shows total materials expense. Job costing shows which jobs made money and which didn’t. That information changes how you bid and which types of work you pursue. Working with a contractor bookkeeper in American Fork who understands job costing makes this tracking straightforward instead of a burden you dread each month.
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More Questions
What accounting software works best for HVAC contractors?
QuickBooks Online or Desktop handles most HVAC contractors' needs when set up correctly for job costing. The bigger question is whether you also need service management software for dispatching and scheduling.
Read answerWhat reports show job-level profitability?
The key reports are Job Profitability Summary, Job Profitability Detail, and Profit & Loss by Job. These show revenue minus all costs assigned to each project so you can see which jobs actually made money.
Read answerWhat is progress billing and how do I track it?
Progress billing is invoicing based on work completed rather than waiting until the project ends. Track it using a schedule of values that breaks the contract into line items, then invoice for the percentage complete on each item each billing period.
Read answerWhat bookkeeping firms serve the Salt Lake City area?
The Salt Lake City metro has many bookkeeping options from solo practitioners to full-service firms. The right choice depends on your industry, the services you need, and whether you prefer local or virtual support.
Read answerHow do I track costs for each construction project?
Assign every expense to a specific job at the time it happens using cost codes that match how you estimate. Track labor, materials, and subcontractor costs separately by phase, then compare budget to actual weekly.
Read answerWhy do my construction jobs always seem to lose money?
Your jobs might not actually be losing money. Without proper job costing, you can't see which projects are profitable until it's too late. The problem is usually visibility, not the work itself.
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