 QuickBooks Desktop 2023. Create invoices using billable time. Let's do it within two-inch QuickBooks Desktop 2023. Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems PDF files and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. Here we are in QuickBooks Desktop. Get great guitar practice file we started up in a prior presentation going through the setup process. We do every time maximize the homepage view drop down hide icon bar open windows list checked off open windows open on the left reports company financial P&L profit and loss change that range 010123 to 123123 customize it fonts and number at changing it to 14 okay stop yelling I'm doing it I'm doing it okay yes okay and then reports drop down again company and financial this time the balance sheet standard let's go to the customization up top to change the range from 010123 to 123123 font in and numbering changing for tuning okay yes and okay that's the setup process that we do every time back to the homepage in prior presentations we've normally been focusing in on our revenue cycle being that of selling inventory in our case guitars but now we're thinking about a job cost kind of system a partnership setup which you might find in a book keeping firm a law firm a CPA firm but this time we're going to do it in our guitar firm where we have the staff would be similar to the staff and like a CPA firm entering their time for the work they did we set up items in a prior presentation lists drop down and we went into our item list and we created items for guitar lessons for our employees so they're going to do guitar lessons we're going to build them out not by the guitar lesson or charging by the guitar lessons themselves but by the time for each individual guitar teacher in this case so we have these items set up and now we used those items to enter the time so when our guitar teachers entered the data into the system let's go say they did this for Adam let's say Adam entered his time so here it is I changed the date to find it so February 13th through the 19th so they entered the time they have the customer involved they've got the item that we set up and we have it billable which means we can pull it into the invoice so if I close this out then now we would imagine that they're going to enter the time our employees whenever they do the work and then we're going to use that time to bill out or invoice out our customers periodically possibly weekly possibly monthly for example so we're going to go up top and say we're going to create some invoices then and we made some generic customers so we got customer one I'm going to say one customer and I'm going to say okay so now there's some time for them I'm going to go into that time and say we have then two items on the time tab I'm going to check both of them off and say okay that pulls in the hours that have been spent and the item is guitar lessons I probably should have set up in the description to have Adam guitar lessons in the description but it's pretty clear in the item as well 75 hours being the rate times two 150 it's not a taxable item so fairly straightforward invoice because we don't have any inventory and we don't have any sales tax so what's this going to do it's going to increase accounts receivable by the 300 because it's an invoice the other side is going to go to revenue driven by the item which I believe we just put to service revenue let's go ahead and it's going to have an impact on the sub ledger for customer number one let's save it let's close it I'm not going to email it because it's a practice problem unchecking the email try it again home tab or balance sheet balance sheet what are you talking about home tab we're going to go then to the accounts receivable double click on it and I didn't put the right date in did I let me change the date we're not working real time here customer number one so I changed it to 2022 totally did this on purpose so that if you do have a date problem yourself you could double click on it and change this up and the date should be 022723 let's say that's going to be the date let's change the terms while we're here to net 30 anything else that needs adjustment maybe you should think about it a little bit more before you start okay okay I get it so there it is so there it's down here at the 300 so there is that the other side is going to be going to the revenue on the P and the L and the profit and the loss it's in service revenue because that's where we totaled to go with the item two items here same invoice and so there it is so closing that out closing that out let's do it again but before I do let's just take a look at the sub ledger reports drop down and then customers and receivable customer balance detail and then we can see customer number one there's the invoice we can also look at the customer center customer center and now of course we have the invoice here for that customer as well it's also in the open invoices if I checked here invoices let's just look at the open invoices there we have those items let's go back to the homepage and let's do it again so I can say let's do another one and say okay let's enter the next one obviously when we're looking up the time we could go back into our time entry here and look up the customers that we're going to be billing out and then when we enter the invoice will have that link that will be what will be tying out the billable time to the invoice so I'm going to say this is going to be customer number two this time tab and then I'm going to say we have this it's paraphrasing or I am paraphrasing it saying hey you got some billable items that's what QuickBooks is saying we got the time I'm going to check these two off as well saying okay it pulls them in nicely so customer two is being charged out what's this going to do same thing it's going to be increasing the accounts receivable because it's an invoice $300 other side going to sales driven by the item service item no inventory impacted or anything like that I'm going to try to change the date of this time without messing things up and then let's change the terms to to net 30 because I intentionally did that didn't do that last time so we can show you how to fix it but this time I'm going to do it right the first time and now we're going to say save and new instead of save and close let's just make the other ones too so I'm going to say okay hold on a sec I'm going to not emailing save and new so you've changed the customer two's terms that's okay that's what we want the terms to be from now on from now on the terms are thus so we have it again customer number three this time we're going to just click that off going to take these two off this time for Erica Smith's time that she's been putting in place okay we charge a little bit bill a little bit more for Erica the date looks good this time the terms let's say it's net 30 net 30 you know how you know what our terms are and then Erica's time two hours she charges 115 because she's an excellent guitar teacher better than Adam apparently although Adam's good to teach me a lot on the guitar but any case what's this going to do the invoice is going to bring accounts receivable up by the 460 other side once again being driven by the item going to the service service revenue let's do this one more time uno freaking moss ma more or something save and new i'm not emailing it i'm not emailing them this is a practice problem for goodness we're going to say yes save the terms customer number four customer number four time checking it off those two for Erica's time up top we're going to say okay and the dates good then terms net 30 on the terms once again customer four build out same entry accounts receivable going up revenue on the service going up let's save it let's close it let's check it out i'm not emailing it i am not eat uncheck the email save and close this time and we're going to save the terms go into the balance sheet i'm you're popping up stuff is starting to irritate me here quick books i'm telling you but that's okay they're just trying to help don't get mad at quick books accounts receivable if i double click on it on the balance sheet we can see down here we've got customers one two three and four entering the time closing that out then on the other side on the p and l on the profit to the loss we got the sales service revenue this time instead of the sales because that's for inventory this is the service items there we have that looks good if i wanted to break out the sales by you know what we did the services that we did i could create another sales item that wouldn't be too too too much data but note that you always want to remember that you have the sub reports if you're entering properly using invoices and sales receipts as opposed to just deposit forms because i can always go up top here go into the sales and say i want to see the sales by by item and that will break out our sales change the date oh one oh one two three to 12 thirty one two three that'll break out our our service items down here so we can see in more detail you know what actually we sold we have these different service items so if i so again if i put all of this stuff like i made a different sales account for every item that we have whether that be service or inventory that would be quite ugly on the income statement you might have a couple categories i might want to say okay i sell guitars and then i i have service items that are non that are non uh guitar lessons and maybe i want to break out the guitar lessons separately on the income statement but you want to balance how much detail you want on the income statement versus the the other reports that you can that are therefore breaking out more detail the the profit and loss being kind of more of a summary type of of report okay and if i go to the balance sheet then as well the accounts receivable should also be tying out to the sub ledger in the customer balance details we got customer one two three and four they owe us money now for those brilliant guitar lessons tying out to 2247650 which ties out to what's on the balance sheet and if i go to the customer center customer center and i want to look at say customers with active balances gives us that same information without like the total down here and i can go into any one of these look at those invoices to see the payment to try to get collections on it and so on i can always go i can also go to the transactions tab invoices and i can look at the open invoices for example to check out those which have not yet been paid note that periodically at the end of the month i might be trying to send out statements which will include multiple invoices if we have multiple invoices that are outstanding and and help me to kind of group the outstanding items and track my accounts receivable to be to be collecting on them all right let's do some receive payment now so now i'm going to say we got paid next next lineup or next item in the flow here so now we're going to say this is customer number one's going to pay us and we're going to just i'm going to do it this way by checking it off down below and that will then populate the amount to be paid if it's some amount if they paid of some partial component not the full amount then we can put a partial amount here instead of the full amount this is going to be on the 27th and i'm going to keep it at cash just so we can imagine grouping it together with other forms of of payment to practice putting it into the undeposited funds notice it's going into undeposited funds as opposed to going directly into the checking account remembering that you only have this option to possibly change it from undeposited funds to a checking account if you change the options in the preferences up top in the payments area company preferences this is checked off by default we unchecked it that's why we see this item here now i don't see the button to click it off because i'm zoomed in so i'm going to close it and then say save here so we're going to save the changes and then if i go to my balance sheet we've got undeposited funds went up by the 400 dollars actually no it went up by 300 dollars 100 was already in there from before closing that back out the other side went to accounts receivable decreasing the ar the accounts receivable down by the 300 dollars closing that out we can see the activity and the customer balance detail report so where we see customer number one there's the payment goes up goes back down and we can also see that in the customer center if i go to the customer of customer number one we could see the invoice and payments connecting out if i go to the transactions it's no longer included in the open invoices i can also see that if i go over to the the home page that now we have two items that are in the record deposit one from a prior a transaction that took place and one 300 dollar item here that we're going to basically be combining together and then depositing remember that to represent what's in undeposited funds on the balance sheet and is made up by either the sales receipts and the receive payment items so we're going to imagine that those are both cash and we're going to group them together if i select the deposit then they both show up here so i'm going to say okay there's the two items i'm going to deposit them at one time which will be the total of the 400 dollars okay the date will keep it up to 27th again the other side's going to undeposited funds what's this going to do decrease the checking account by the total 400 dollars which is the amount we expect to see in the bank side of things on the bank statement and then undeposited funds will go down by 400 dollars but record them separately so we can see the increases and decreases and tie them out in the general ledger so let's go save it and close it and check it out we're going to go then to the balance sheet and double click on the checking account because that's we like checking out the checking so we're going to go down here there's the 400 put there in the one lump sum closing it back out the other side in undeposited funds you can't see it because it doesn't have any balance in it let's customize it and go to the advanced and say i want to see everything that is active give me that zero so i can use the zoom function is what i'm talking about so there's the undeposited funds got a zero in it i could double click on it boom and then there notice it went out in the two transactions here even though that's the same deposit form so that we can then see the increases and the decreases in the general ledger which is this report in essence which is a transactions by account report okay let's see where we stand on the trial balance let's go to the trustee tb reports drop down company or accounting and taxes trial balance and just check our numbers from 0 1 0 1 2 3 to 12 31 2 3 and then i'll i'll customize it and fonts and numbers and changing the font let's bring it up to 16 so we could see where we stand here are our two legs the credit and the debit and credit legs and you could see if they're stand if you're standing on your own two legs here anyways so if your numbers don't tie out then try changing the date range as i've demonstrated a few times it's often a date issue when there's a problem you can drill down on it you can make changes if necessary we will do a transaction detail report at the end of the month data input which is often helpful to zero down in hone in on any problems or discrepancies