Differences between subcustomer and projects

I'd be glad to share with you the details about choosing between sub-customers and projects feature in QuickBooks Online (QBO), @Apples521. Let's dive into the specifics below.

When managing construction projects in QuickBooks Online (QBO), the choice between sub-customers and projects can greatly affect job costing and project management, especially for large jobs over $100,000 that span several months.

Sub-customers create a hierarchical structure that aids in tracking various locations or divisions. Projects, on the other hand, are tied directly to a single customer and offer improved reporting and job costing, but billing must go to that customer, limiting payment flexibility. While sub-customers allow for alternative billing options, they may complicate financial tracking and reporting.

Moreover, converting sub-customers to projects can enhance job costing accuracy and project profitability insights. However, if your current structure meets your needs without issues, sticking with sub-customers could still be valid. Your decision should reflect the complexity of your projects, reporting requirements, and preferred billing approach.

Furthermore, for detailed information about projects, feel free to check out this article: Introducing QuickBooks Projects.

For additional guidance, I've included a reference article to support your project creation process in QuickBooks: Create and manage projects in QuickBooks Online.

Keep us posted if you have other concerns about sub-customers and projects in QBO. We're always here to lend a helping hand.