Saturday, September 26, 2026

How to Track Job Costs as a Contractor: The Complete Guide

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Short answer: To track job costs, save every receipt under the right job. Text a photo of each receipt to your Receipt AI number. When Receipt AI asks, reply with the folder number or type a new folder name. Receipt AI reads the receipt and pulls out the vendor, total, and line items. When the job is done, you know exactly what it cost.

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What is job costing?

Job costing means tracking what you spend on each job. Materials. Fuel. Permits. Then you compare that to what you charged the customer. This tells you if the job made money.

It matters for three reasons:

• You learn which jobs make money. Most contractors know their revenue. Few know their true cost per job.
• You bid better. If you know what the last water heater install really cost, your next quote is based on facts.
• You find money leaks. Small material overruns and extra supply house trips add up across many jobs.

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Why the old way does not work

Most contractors track receipts in one of three ways. All three fail:

1. Paper receipts in the truck. They fade, get lost, and are not tied to any job.
2. A spreadsheet on Sunday. Hours of typing, weeks late. Half the receipts are missing. Nobody remembers which job the $214 receipt was for.
3. Memory. “I think that was for the Johnson job.” It was not.

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How to track job costs with Receipt AI

First, turn on Folder AI. Follow the onboarding steps to enable it. If you have QuickBooks Online or Xero, follow the prompts to finish setup. It takes a minute.

Then do these moves on every job.

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Move 1: Text receipts to the right job

1. Take a photo of the receipt.
2. Text it to your Receipt AI number. You can also use WhatsApp or email.
3. Receipt AI will ask which folder to use. Reply with the folder number, or type a new folder name. For example: 1042 - Johnson water heater.

Send one photo per text message. Email can take up to three photos at a time. There is no app to install. If your techs can send a picture message, they can send a receipt.

Tip: Give crew members the Member role. Go to the Team page. Click Add a team member. Pick Member. They can send in receipts but cannot see your books.

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Move 2A: Without accounting software

1. Open each receipt in Receipt AI. Check the vendor, total, and line items. Line items show each part, the quantity, and the unit price. If something is wrong, click Edit Receipt and fix it.
2. Open the job folder. Every receipt for that job is there. Click Download CSV on the Receipts page for a spreadsheet.

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Move 2B: With QuickBooks Online or Xero

1. If you have QuickBooks Online or Xero, connect your account in Receipt AI. This is a one-time setup.
2. Receipts sync as expenses with the receipt image attached. The vendor, tax codes, and account names are applied automatically from your accounting software.
3. Turn on Smart Review in your review settings. Only problem receipts need your eyes. Duplicates get flagged automatically. Click Reconcile to match receipts with your bank in one click. Then open the job folder, or run job profitability reports in QuickBooks.

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Example: water heater replacement

Mike runs a two-truck plumbing shop. This is job 1042:

• 8:04 AM. His tech texts a photo of the $612 supply house receipt. Receipt AI asks which folder. He replies 1042 - Johnson water heater. Line items show the heater, expansion tank, fittings, and permit fee.
• 11:30 AM. Second trip for a forgotten valve. $38 receipt. Same folder.
• 2:15 PM. The customer returns an extra part. The tech photographs the refund receipt. Receipt AI records the credit against the job.
• Friday. Everything is already in QuickBooks, categorized and reconciled. Job 1042 shows $650 in materials against a $1,850 invoice. Mike knows his margin before he bids the next job.

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Five tips

1. Use clear folder names. Name folders by job number, customer, or address. Anyone on the crew can then reply with the right folder number.
2. Photograph return receipts too. A refund receipt is a cost reduction. Your books should show it.
3. Duplicate receipts are caught automatically. If two techs text the same receipt, it gets flagged. It will not be counted twice.
4. Reconcile every Friday. Fifteen minutes a week beats a lost weekend at month end.
5. Use insights to negotiate. If Receipt Insights shows $18,000 at one supply house last quarter, that is leverage for better pricing.

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Frequently Asked Questions

Do I need QuickBooks or Xero?

No. Follow Move 2A above. You can use job folders, line items, and CSV export without accounting software. If you have QuickBooks Online or Xero, follow Move 2B. You also get automatic sync, tax codes, and one-click reconciliation.

Can I add a note to my receipt?

Yes. On SMS or WhatsApp, type your note in the same message as the receipt photo. On email, put it in the subject line. You can also add or edit a note anytime by opening the receipt and clicking Edit Receipt.

What if my techs will not use another app?

There is no app. They text a photo. If they can send a picture message, they can send a receipt.

What if one receipt covers two jobs?

Save it to one job folder first. Then open the receipt, check the line items, and split the costs when you review.

Can I track labor cost per job?

Receipt AI tracks receipt costs: materials, fuel, permits, and subcontractor invoices. Track labor hours in QuickBooks and you get the full picture.

How is this different from Expensify or Dext?

Those tools are built for office expense reports. Receipt AI is built for the field: text-a-photo capture with no app, job folders, line-item extraction, and direct sync to QuickBooks and Xero.

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