The time tracking feature in QuickBooks® allows you to track time spent on individual customer jobs, as well as pay employees and subcontractors, and bill customers based on the recorded time.
There are three ways to get time data into a QuickBooks company file:
1. Use a Single Activity entry and, if desired, the Stopwatch to time an activity while you are performing it. A single activity entry shows the time spent by one person doing a single activity for a single job on a single date. If this time data will be used to process payroll, you can even link the entry to a specific payroll item. To gather the data and use it for billing your customers, simply click the Billable checkbox
2. Enter the time data on a weekly timesheet. A weekly timesheet shows the time spent by one person doing any number of activities for any number of jobs within a seven-day period.
3. Or, use one of the many third-party add-on applications that integrate with QuickBooks to gather the time data and ultimately electronically push it into the QuickBooks timesheet. Many of these apps allow a company "administrator" to view, approve and edit an employee's timesheet online before it is transferred to QuickBooks. Some even notify employees when their timesheets are due by sending automatic email reminders. Visit www.appcenter.intuit.com to browse the ever-changing array of Web and mobile apps available.
In QuickBooks, service items are used to enter time that you either charge your customers for and/or purchase from others. Examples include specialized labor, consulting hours and professional fees.
To track expenses correctly for subcontractors, be sure to check the box that "This service is used in assemblies or is performed by a subcontractor or partner," and assign the cost of the service item to an expense account that tracks payments to 1099 vendors.
By entering time in QuickBooks, you can create reports that summarize your time by person, job and activity. In doing so, you will have the tools you need to optimize your resources and your profitability!
Contact our office if you have any questions about tracking time in QuickBooks. We'd be glad to help!
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