QuickBooks Tips

Hiring Summer Employees? QuickBooks Can Track Their Time

10/12/2020

QuickBooks offers capable tools for tracking the items you sell, but it’s also quite a competent time-tracker. If you pay employees based on the hours they work, QuickBooks can ease your bookkeeping burden. Tracked time can flow to both invoices and payroll, helping you pay employees and collect on services provided to customers.

Before you start tracking time, you’ll need to turn on the related tools. Click Edit | Preferences, and then Time & Expenses. Click on the tab titled Company Preferences. You’ll see the window shown in Figure 1.

Hiring Summer Employees Quickbooks Can Track Their Time

Figure 1: Before you can start tracking and billing for time, you’ll need to fill out some of the fields in this Company Preferences window.

In this window, be sure you’ve checked Yes, and then select the first day of the work week from the drop-down list.

If you are going to want billable time to flow directly to invoices, check the first box under Invoicing Options. The other options in this window relate to expense and item tracking; check with us to see if your business needs to use them.

Tip: If you want to use payroll to pay employees for time worked, be sure to check the box labeled “Use time data to create paychecks” when you’re building employee records, as shown in Figure 2.

Hiring Summer Employees Quickbooks Can Track Their Time

Figure 2: To facilitate the flow from time to paychecks, be sure to check the box for “Use time data to create paychecks.”

If you’re planning to use QuickBooks’s job tracking, click on Sales & Customers in the left pane, then on the My Preferences tab (see Figure 1). Here, you can choose how you want QuickBooks to handle available time and costs when you’re preparing an invoice.

Single Activities or Time Sheets?

QuickBooks offers two ways to enter time. You can record hours on individual tickets or fill out weekly timesheets. No matter which you choose, the information is always available in the other form. You can switch methods at any time, and your work will be preserved.

Let’s start with the individual time tickets. Open the Employee Center in the toolbar, or click on the Employees menu. Click Enter Time, then Time/Enter Single Activity. The window shown in Figure 3 opens:

Hiring Summer Employees Quickbooks Can Track Their Time

Figure 3: It’s easy to record hours on this single-activity ticket by simply filling in the blanks.

QuickBooks pulls in data from other parts of the program, records you’ve already created. First, enter the activity’s date or select it from the calendar. Click the arrow next to Name and choose the appropriate employee from the list.

Second, if the hours are going to be billed to a customer or job, click the next arrow and select the correct one (ignore this if you’re just recording company time, like regular compensation or sick time). Finally, pick the service that the employee performed, if applicable. Be sure to check the Billable box when it’s appropriate.

Tip: You can create a new record on the fly here if, for example, you haven’t set up the service you need to record. Click < Add New > in the drop-down list.

Linking to Payroll

You can also use QuickBooks’s timer if you’re going to bill for a timed activity such as a phone call. And you can add notes that will be saved to the ticket.

QuickBooks provides other ways to describe hours spent so that they’re recorded properly. If you have payroll turned on and have associated a payroll item with the selected service item, the Payroll Item field (which indicates how much the employee should be paid) will automatically be filled in. You can easily change this field if necessary.

If you haven’t created a payroll item, select Add New. A wizard will walk you through the process. This relationship can be a bit confusing so talk to us if you have any questions. When you’re done, click Save & Close or Save & New.

Week at a Time

Weekly timesheets can save you a lot of time. To get there, open the Employee Center in the toolbar, or click on the Employees menu. Click Use Weekly Timesheet. You’ll see a window similar to the one shown in Figure 4:

Hiring Summer Employees Quickbooks Can Track Their Time

Figure 4: Rather than entering each activity individually, you can document an entire week at a time using the Weekly Timesheet.

You can speed through weekly timesheets, using the drop-down lists to select the appropriate data and entering the number of hours worked. Click Copy Last Sheet if you want to duplicate the configuration from the last pay period.

QuickBooks Time Tracker offers another way to save time and avoid errors. Employees can send their timesheets from any computer that has an Internet connection. Your staff who handles payroll can then download and incorporate them into the company’s payroll. Prices start at $10/month for one user.

Whether you’re bringing employees in for seasonal help or your regular payroll incorporates time worked as well as items sold, QuickBooks contains the tools you need to both invoice customers accurately and dispatch proper paychecks.

If you need help with this feature, or you have any questions on QuickBooks’s reporting, don’t hesitate to give us a call.

Ask a Question

Find comfort in knowing an Expert in accounting is only an email or phone-call away.

We Are Here to Help

We will happily offer you a free consultation to determine how we can best serve you.

Blog

Attestation Services: Compilations, Reviews, and Audits CPAs offer attestation services as unbiased options

frequently asked questions

  • What Is A Virtual CFO & How Can It Transform My Business?
    • a. A Virtual CFO can be a much-needed sounding board, coach, and guide. Outsourced Virtual CFO is generally not just one person, but an experienced team of professionals providing a full-stack Accounting and Finance Department at a fraction of the cost that it would otherwise cost a business to hire even just one full-time CFO internally. The right virtual CFO service team, such as the one at Perpetual CPA, can deliver timely, detailed, comprehensive financial reporting, interpret the financial data, prioritize recommendations, give expert guidance on how to execute those recommendations, and ultimately give a better path to business success.
  • How can a Virtual Accounting Department help small businesses scale and grow?
    • a. A growing number of small businesses are opting to outsource services such as IT, human resources, or accounting. The benefit of a Virtual Accounting Department is that the company can reduce or increase services to accommodate current business needs. Because the service provider has multiple clients they can absorb fluctuations in workflow more easily than the average small/medium business can on its own.

      b. A Virtual Accounting Department can integrate with a company’s own accounting department to create a blended solution or provide a full-stack accounting department, including Accounting Staff, Manager, Controller, and Virtual CFO. By using a Virtual Accounting Department Small business owners don’t have to worry about hiring, training, figuring out compensation, and payroll compliance for the internal accounting team. Also as the business grows and new and more complex accounting and tax issues come up, the outsourced Virtual Accounting Department can provide all the needed expertise to facilitate continued business success.
  • What are the benefits of hiring a CPA firm?
    • a. Certified Public Accountants (CPAs) do a lot more than just crunch numbers and prepare taxes. They provide valuable expertise and strategies to help businesses and individuals achieve their business and financial goals. A CPA firm can help small businesses with management financial reporting, tax compliance, strategic business advice, and much more. Firms like Perpetual CPA, that specialize in helping small and medium-sized businesses achieve growth, can also provide Virtual CFO services, that help the business owners have the foresight into the short-term future cashflows and be able to more successfully navigate their business performance.
  • What are the best strategies for small business growth?
    • a. A business growth strategy is, simply, a plan of how a business gets from where it is today to where it wants to be in the future.

      b. Some of the questions to consider when coming up with a growth strategy are:
      i. Where will the business get new customers from?
      ii. How will the business expand into new markets?
      iii. What new products could the business offer?

      c. In reality, what happens with many small businesses, is that they generally achieve a specific level of business activity or sales and then the business growth trend flattens. In those cases, working with a firm like Perpetual CPA, which provides Virtual CFO services, can help small businesses avoid stagnation. Virtual CFO services, aside from providing timely accounting and tax reporting, can also provide valuable insight into the current performance of the business, as well as, foresight into the future cash flows for the business. Perpetual CPA Virtual CFO team helps small businesses interpret their financial information and come up with business strategies to help improve business performance and achieve growth.
  • What are the best strategies for small business risk management?
    • a. A risk management plan helps a business develop a detailed strategy to deal with certain risks that are particularly important for the businesses’ success.

      b. For many small and medium-sized businesses, the easiest way to develop and implement a business risk management plan is to work with a reputable CPA firm, such as Perpetual CPA. Large corporations invest a lot of resources and time into managing risk, which is a material factor that allows those large corporations to continue to generate billions of dollars in revenue every year. Small businesses, however, almost never manage any business risks, which is the major reason that over half of all the small businesses do not survive for more than 5 years. Generally, small business owners are not experienced corporate business professionals and lack the needed business knowledge, yet they often have to wear many hats while trying to get their businesses off the ground. In those situations, a CPA firm such as Perpetual CPA, can help small businesses better manage tax compliance risks, cash flow, internal controls, business administration, financial reporting, and much more.
  • What is Strategic Advisory and Virtual CFO? / How do Strategic Advisory and Virtual CFO services work?
    • a. When small businesses start spinning wheels, it is a good time to consider hiring a reputable CPA firm, such as Perpetual CPA, which can provide both Strategic Advice and Virtual CFO services.

      b. As a strategic advisor, the CPA firm will work with business management to improve the effectiveness and profitability of the business. They will look holistically at the business and find ways to operate the business more efficiently, increase customers through additional or improved marketing or improve customer touchpoints and service.

      c. As a Virtual CFO, the CPA firm is like a part-time version of a traditional CFO or Chief Financial Officer plus a full Accounting support team. They perform the tasks that in a larger organization would be performed by the CFO, Controller, and Accounting Staff such as preparing and overseeing the budget process, identifying and analyzing current and future trends, and developing strategies for the business growth.
  • How can timely financial visibility and management reporting help with better business decisions and growth?
    • a. A simple way to a successful business is to prioritize the timely financial visibility and management reporting as it means:
      i. Timely financial information and analysis are essential for making informed decisions, evaluating your company’s results, improving financial performance, and ensuring you are on the path to meet your strategic goals.
      ii. Management reporting is a source of business intelligence that helps business leaders make more accurate, data-driven decisions. But, these reports are most useful if they are available timely and the management receives proper interpretation of the business financial information.

free initial 30-minute consultation

    © Perpetual CPA 2020   •   Site Map   •   Privacy Policy   •   Disclaimer   •   Powered By   Designed by Dot Com Media Moguls