Tracking balance of subcontractors contract by project

Welcome to the Community, @dp1424. I can help you track the balance of the subcontractor's contract for a project in QuickBooks Online (QBO).

The Track Project Profitability feature in QBO Plus and Advanced helps allocate income and expenses to specific projects, making it easier to see how much each project is bringing in and how much it's costing you.

To track subcontractors' balances for a project, let's set up a project first and create purchase orders to track the amount owed to each subcontractor for a specific project.

To begin with, let's set up a project:

1. Sign in to your QBO account.
2. Go to the Projects tab.
3. Click New Project.
4. Enter the project details, including the client as a Customer.
5. Once done, select Save.

For more information about creating a project, here's an article: Manage projects in QBO.

Second, let's add the subcontractors as vendors:

1. Go to the Expenses tab and select Vendors.
2. Click on New Vendor.
3. Enter the subcontractor’s details.
4. Ensure to set up a vendor for each subcontractor.

Third, let's create a purchase order to track costs and all the items and services you need:

1. Go to the + New button.
2. Select Purchase Order.
3. Enter the subcontractor’s name on the Vendor dropdown.
4. Enter the contract details, including the project you created.
5. Once done, click Save and Close.

Fourth, record the expenses when you receive bills from your subcontractors to track all the costs associated with a project:

1. Click the + New button.
2. Select Expense.
3. Ensure you assign the expense to the subcontractors.
4. Select the project you created in the Customer/Project section.
5. Once done, select Save and Close.

Lastly, let's run reports to gain insights into the business's financial health and its overview:

1. Go to the Reports tab.
2. Search for the Vendor Balance Detail or Vendor Balance Summary reports to see the balance of subcontractors’ contracts.
3. You can also run project-specific reports such as Project Profitability Summary or Expenses by Vendor for Project to track the overall profitability and expenses of the project you created.

Additionally, I'll attach these articles on creating and managing classes and allow you to add specific classes to purchase orders:

• Get started with class tracking in QBO
• Create and manage classes

Moreover, you can utilize this article as a future reference in memorizing reports to save its current customization settings: Memorize a report.

I'll be here to assist you further if you need more detailed guidance about tracking the balance of a subcontractor's contract for a project. Have a productive day.