This is part one of a three part series. Tracking, paying for, and invoicing time in QuickBooks is a big topic. Too big for one post. The first post will cover entering time transactions in QuickBooks, the second will address how to invoice or charge for that time. The third will focus on paying employees or vendors for performing the work.
Paying for Time Entered and Invoiced
Now for the third and final part of our review of tracking and invoicing time in QuickBooks. We must pay the employees and/or vendors who worked the time that was used to invoice our customer.
There are time savings associated with the payment of this time, either for employees or vendors.
See the highlighted 26 hours. These are the hours on the weekly timesheet shown in part one of this series. They are also the same twenty-six hours that were invoiced in part two. Now, they have carried into Gregg’s paycheck without being re-entered.
The above screenshot shows what happens when a check is created for a vendor with outstanding time in QuickBooks. This time could have been imported into an invoice exactly the same as the Gregg Schneider example.
This example is shown here to note that a check or a bill can be created for a vendor for time entered into one of the time forms in QuickBooks. Selecting Yes to the message shown in the middle of the check form causes a popup asking for a date range for the time QuickBooks should use for the check. In this example, the entire month of December is selected resulting in the following check:
CAUTION: If the time from a vendor transaction is used for creation of the customer invoice, do not mark the check paying for that time as Billable. Doing so will result in the time on the Time tab of the Add Time/Costs window being available for invoicing AND the expense of the check available on the Items tab of the Add Time/Costs window.
While tracking time for vendors in this manner can be a useful tool, use caution and strict procedures to eliminate the possibility of double invoicing. This is only an issue when making Vendor time billable.
If you invoice customers for time, experiment with these great tools in QuickBooks and see how time can be saved in invoicing your customers. In large jobs invoiced for time and materials, these features will serve to track the many hours worked and items purchased for the job. In addition, QuickBooks will track which have been previously invoiced to the customer and which have not.