 QuickBooks Desktop 2023, bill for hourly services of staff and set up items and enter billable time. Let's do it within two-edged 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 guitars practice problem. We started up in a prior presentation going through the setup process. We do every time maximized the homepage to the gray area going to the view drop down no team we have the hide icon bar open windows list checked off open windows open on the left hand side reports drop down company and financial let's go to the profit and loss standard change the range from 010123 to 123123 customizing its fonts and numbers change in the font bring it it up to 14 okay yes and okay once again with the reports drop down company financial this time the balance sheet let's customize it and then range and change in 010123 to 123123 fonts and the numbers poor father 14 okay yes please and okay so there we have the set of process that we do every time we're going to go back to the homepage here within our revenue cycle we have primarily been thinking about selling guitars but now we want to think about more of a job cost kind of system one which might be found in a law firm bookkeeping firm CPA firm where we have partners and staff the staff needs to be entering their time and billing it for the work they're doing for particular clients and then we're going to take that time as the partners and bill our customers using an invoice created from the time that has been entered you can use a similar process if you're a construction company or something like that however it's often more complex because you don't just have the time that you're charging for the invoice but also the materials that need to be tracked in that case we have more courses to get into more complex detail on those kinds of systems so we're going to imagine then we're going to be entering time here not so much so that we can build the time with I mean not so much so that we can use the time to run payroll I should say but rather so that we can build the time notice if you have a job cost system we might be paying these people as employees that are salaried employees even we might not be paying them hourly or possibly they could even be contractors or something like that possibly and that means that when we run payroll we don't really need to know what their hours are to process payroll if they're salaried instead what we're entering the time for is or in order to create the invoices now note you could enter the time here using QuickBooks but you don't have to QuickBooks just has a nice link that if you enter the time this way that it connects to the invoice using that billable connection quite nicely you could just have them do it in excel or some other software take that information to create your billable information but the easier the link is obviously the easier it would be you can also look into other options for tracking the time and having your employees tie to it you can look into the turn on time tracking option here but we're just going to manually enter it in the enter time down below now as I enter the time there's a couple ways you might do this like if I have an employee that's entering the information into their time and I said this was like Adam Hamilton or something then they can create their item over here they can create their item over here this is the customer job that they would be working on we saw this in the prior month when you create the service item which the service item will be used to then create the invoice that will bill the client with we can either use whatever they worked on so we could use like the hourly rate or something like that or we can set up a different billable item that will be charging out the time that has been worked so we can basically bill out in other words by what they did or we can bill out by the person that did the work so we might say certain people we're going to put on jobs that are going to be higher level jobs and we're going to have a higher billable rate for those people's time that's the method we're going to use here and we're going to imagine that they that they have guitar lessons so guitar lessons is how we're going to mirror this process we have people that are doing guitar lessons they're going to enter their time who they did the guitar lessons for and then we're going to bill out that time so i'm going to go up to the lists up top and look at the item list let's set up a couple items i'm going to hit the item drop down or rise up and say new item and i'm going to make it a service item and i'm going to say this is adam guitar lessons so i'm going to create a new item called adam guitar lessons and i'm just going to copy that here and put that here and say that that was for let's say we charge seventy five dollars for the guitar lessons i'm just going to keep it into the service account here so i might make another account called guitar lessons guitar lesson income or possibly i just keep it in the service revenue and allow that that separate sub category to be broken out when we run sub ledger type of reports rather than on the income statement have it another line item that's kind of up to you and how much detail you want on the income statement so let's do another one i'm going to say item drop down or rise up and say new and i'm going to call it a service item and this is going to be erica guitar lessons and then i'll copy that i'll copy that and put it down here and she's going to and she's going to charge or we are going to charge on her behalf for her time one hundred fifteen this is what this is not what we're paying her this is what we're billing her time out for notice it should be non taxable i think i have to change the last one and i'm going to put this in a service item meaning we're not charging sales tax because it's a service item okay let's fix atoms because i think i made didn't change this to non taxable i'm going to edit the item so it should be non tax and say okay so there we have that so now let's enter his time in so i'm going to go to the home page i'm going to enter the time not so much so i can pay the employees but so i can use it to then create invoices so i'm going to hit the drop down i'm going to use the weekly time sheet because i think that's the easiest one to do i'm going to say this is adam hamilton and i'm going to set the date to the last week in february so i'm going to do it for the the week the last week in february so it's going to go through sunday here so we'll go through up through the 19th we'll say for the for so it's february 13th through the 19th all right so then we have the customer i'm just going to make a generic customer we set up customer one before so we're going to take this to customer one and i'm going to call it adam guitar lessons that's going to be the item that's going to help us to bill out so that's what's going to be tying to the invoice and then it's going to be a payroll item now he's salaried so if i pulled this over to his payroll then it would pull over the salaried item but i'm not really consider really focus on the payroll the notes here i'm going to say monday he did two hours wednesday two hour lessons that's four hours total and it's going to be billable meaning we're going to make an invoice from it and then i've got customer two that i'm going to say this is once again adam's guitar lessons so notice that i'm not putting the item in here by what they did guitar lessons i'm putting it in here driven by i made the item for adam i'm billing adam's time out rather than what adam did right because i'm going to say he has a higher rate for his guitar lessons possibly or lesser rate whatever then whoever else has the guitar lessons okay so this is going to be two hours here and two hours on thursday for a total of four hours that will be billed out that's a total of eight hours that we are going to be billing out for the guitar lessons note as you enter the data into the system this would be the same if you have excel worksheets that you're doing this in you have to have you could if you only had one thing that you worked on all week one line that you could put all of your time in however uh of course if you had two people actually i want to make this one a different customer let's make this customer two customer two tab i'm going to do a quick ad so because we have two two customers that's going to require us to use two lines the same would be the case if we had a different jobs that we worked on we couldn't we couldn't use the same line even if we had the same customer if we worked on uh different jobs so we're going to keep that that's going to be the eight hours let's say save and new i'm going to say save a new instead of save and close i'll do the same thing for erica smith so we'll take her stuff here and we're going to say this is going to be i'm just going to make generic customers customer three this time tab quick ad and i'm going to type in erica's time erica's guitar lessons and she's going to do on monday and wednesday as well it's billable and then i'll just do a mirroring that for customer four adding a new customer quick ad erica time is the item we're going to put this on thursday or tuesday and thursday so those are billable items so this will not record any financial transaction it just inserts the time which could then be used to create the the um the time payroll but that's not what we're focused in on we're going to use it to create then saving and closing the invoice so in a future presentation we'll go up to the invoice then and we'll start to bail out these customers so now we're going to say if i was the partner now or i'm the owner i'm going to say okay our employee worked on this particular customer you can see it has billable items to be pulling in we can pull it pull in those billable items and then and then build them out so if you had a job cost system such as this a partnership kind of set up and it's in a bookkeeping firm or law firm or something like that typically the people will have to enter the time in some way shape or form and then you're going to bill out every week every two weeks every month or something like that based on the time that has been recorded into the system so we'll go through more of this we'll bill some of this out in future presentations no change to the financial statements as of yet