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QuickBooks Part 2: Tracking time

Published by Claudia Burns on 02 May 2018

On April 10th we posted part 1 of “How to Track Time in QuickBooks

In part 1, we created a record for a service item and showed you how to get QuickBooks ready to track time when you activate it in Preferences. In part 2 we will show you 2 ways to use that record: to bill your customers for services rendered, as well as, to pay your employees for their hourly work.

Record Employee Hours

For those employees that are paid an hourly wage and provide services to your customers, there are 2 ways to enter their hours. First: create a work ticket for a single activity. On the home page, click Enter Time, then click Time/Enter Single Activity to open this window.                                                   

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If you need to set a timer, Single-activity work tickets for employee hours are especially useful.

Be sure to check the date. It should display the date that the work was completed, not the date it was recorded. Next, click the arrow in the field next to Name and from the drop-down, select the employee’s name. Then do the same for the Customer: Job field below. The Service item, should display the name of the service the employee performed.

Under Duration, use the Start, Stop, and Pause buttons if you want to time a period of activity. You may also replace the 0:00, which appears by default, with the number of hours and minutes that the employee worked.

Select the correct Payroll Item from the drop-down list in the middle column. You are able to add a new employee if necessary without completing his or her entire record. However, be sure to go back and complete it before your next payroll.

A field titled WC Code, which stands for Workers’ Compensation Code, is hidden behind the drop-down menu. This will only appear when you have this feature turned on and are using QuickBooks Enhanced Payroll.

Tip: You’ve selected an employee who isn’t timesheet-based, if these two fields do not appear.

You’ll see a field labeled Billable, in the upper right hand corner. If you’ll be invoicing a customer for the work done, you should click in the box to create a checkmark.

Save the activity record when you’ve completed it.

Using Timesheets

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Instead of creating a single activity record you can enter employees’ hours directly on a timesheet.

The second option in QuickBooks for entering employee hours is: timesheets. There is a Timesheet icon in the toolbar of the Time/Enter Single Activity window. If you click on the icon with a completed record open, a new window opens containing a graphical representation of a paper timesheet.

When you enter employee hours in a single activity record, they will appear on a timesheet, and vice versa. There are two advantages to entering hours directly on the timesheet. The 1st is that it’s faster. And 2nd , you can click the Copy Last Sheet icon if you’re just going to duplicate an employee’s previous pay period’s hours. If you want to go there straight from the home page, click Enter Time | Use Weekly Timesheet.

Billing Customers for Time

QuickBooks makes it very easy to transfer billable hours worked by employees to the corresponding customers’ invoices. After you’ve entered blocks of time spent on services, open an invoice form and select the customer. This window will open:

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Once you’ve entered billable hours worked by an employee, simply open an invoice form and select that customer to open this window. 

Checked by default is, Select the outstanding billable time and costs to add to this invoice?. When you click OK, a new window opens displaying a grid that contains all of that customer’s billable time. You can Select All or click in front of each entry you want to include. You’ll notice here that there are also tabs on the grid for Expenses, Mileage, and Items that can be billed back to the customer.

If you choose not to carry billable hours over to the invoice at the present time, you can always add them by clicking Add Time/Costs in the invoice’s toolbar.

At Summit CPA we offer QuickBooks consultation. If you would like further information on how we can assist you with your bookkeeping needs, contact our office at 866-497-9761 to schedule an appointment with our Virtual CFO.

                                                              WE SPECIALIZE IN VIRTUAL BOOKKEEPING & ACCOUNTING OUTSOURCING

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