Billing Employee Time to Customers

2 thoughts on “Billing Employee Time to Customers

  • Hi Nick
    Thanks for responding – you’ve cleared up much of the confusion that I had.

    Unfortunately, what we are dealing with here is a double-edged sword!

    It sounds like you’ve outsourced your payroll – but need to have this vital information for job costing and billing purposes.

    It also sounds like you are also now going the extra step of manually re-creating the paycheck (but skipping the timesheet piece).

    Here are a couple of suggestions:

    • make sure that you have “manual” payroll turned on in QuickBooks
    • edit each employee record -> going to the Payroll & Compensation drop-down tab -> and checking the option to use time data to create paychecks

    Then you can enter the time in the timesheet -> go to Pay Employees -> select the employees to pay -> make the taxes, etc. match whatever information you get from the payroll service and then you will have both the weekly timesheet information and the information you need/want to see in the Unbilled costs by job report.

    If you’d like, contact me to arrange for an hour of one-on-one help. Using a combination of the phone and remote access software, I can log into your machine and we can dig into this deeper.

  • Thanks for the detailed and thoughtful reply.

    I’m using QB Pro 2012. I do not use the actual payroll feature. Rather, I was entering time using the QB weekly timesheets, and that time would be marked as billable to my client. Then I click on my client and choose “create invoice” the time will appear and I can bill them.

    My problem is that I have multiple clients w/ multiple jobs under each client, and without clicking “create invoice” on each job, I’d have no clue which jobs have outstanding billable hours as the timesheet hours don’t appear on the “unbilled costs by job” report, which is what I typically use to see which clients I need to create invoices for.

    So far to combat this, in lieu of using the weekly timesheet, I’ve just been using the paycheck screen and marking the employee’s check as a billable item, which then shows up on the unbilled costs report. The downside is no weekly timesheet for each employee, but I still have record of their hours in the memo line of the paycheck in QB.


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