The Simple Way Consultants Can Track Project Expenses in QuickBooks

When you’re juggling multiple clients, deadlines, and deliverables, tracking project expenses can quickly fall to the bottom of your to-do list. But knowing how much each project costs you isn’t just “nice to know”—it’s essential to understanding profitability and making smart business decisions.

Thankfully, QuickBooks makes it easier than ever for consultants to track project-related income and expenses in one central place. You don’t need to be a software expert. You just need a simple system—and a few minutes of setup.

Why Track Project Expenses at All?

Before we get into the “how,” let’s talk about the “why.”

Tracking expenses by project helps you:

• Understand which services are the most profitable

• Spot scope creep and overspending early

• Price future work more accurately

• Back up your numbers in client reports or audits

Whether you're a social media consultant, an engineer, or a coach, project tracking helps transform your business from reactive to proactive.

How to Set Up Project Tracking in QuickBooks Online

1. Turn On the Projects Feature

If you have QuickBooks Plus or Advanced plans, you can:
Go to the gear icon → Account and Settings → Advanced → find “Projects” and turn it on.

This unlocks the ability to assign income and expenses to specific projects.

2. Create a New Project

Navigate to the Projects tab on the left-hand menu. Click “New Project,” give it a name (like “Q3 Marketing Plan – Client XYZ”), and assign it to the correct customer.

3. Assign Income and Expenses to the Project

When entering transactions (like invoices, expenses, bills, or time entries), simply add the appropriate project.

You can:

• Add billable time using QuickBooks Time or manual time entries

• Attach expenses and receipts

• Create estimates or progress invoices

4. Review the Project Dashboard

Once you’ve assigned income and expenses, the Project Dashboard becomes your best friend. It gives you a clear snapshot of:

• Total income

• Total costs

• Gross profit

• Unbilled time and expenses

Everything you need to keep tabs on your bottom line—without digging through spreadsheets.

Bonus Tip: Use Classes or Custom Fields to Track Service Types

If you want to slice your data across service types (e.g., strategy vs. implementation), you can use Classes or Custom Fields instead.

• Classes help you segment income and expenses across departments, service lines, or teams.

• Custom Fields let you capture specific project or client details, like deliverable type or internal codes—without cluttering your chart of accounts.

Too Busy to Set It Up?
That’s Where I Come In.

As a bookkeeper who works with consultants, I help streamline the whole process. I set up your QuickBooks so project tracking works for you, not the other way around. You get clean reports, better insights, and more time to focus on what you do best—serving your clients.

Let’s make your business more profitable and more peaceful.

Book your free discovery call today.