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Caesar's Brook Babblings
QuickBooks News You Can Use 
March 2010 - Vol 3, Issue 3
In This Issue
Tracking Time in QuickBooks
Remove a Vendor Credit
QuickBooks 2007 Service Discontinuation
Caesar's Brook
Greetings! 

Welcome to the March issue of Caesar's Brook Babblings.
 
If you are a service-based business, understanding exactly how you and your employees are spending time is critical to managing your business.  This month we begin a series looking at tracking time in QuickBooks and using the results to stream-line payroll processing, customer invoicing, and determining profitability by job.  We also have a QuickTip on removing vendor credits from bills and a reminder that Intuit will shortly discontinue support of QuickBooks 2007.
 
The sun is stronger, the days are longer.  Spring is on its way.  Get out and take a walk!
 

Lion with Lamb

FeatureFeature Article
 
Tracking TimeTracking Time in QuickBooks
 
QuickBooks allows you to record time spent by employees or vendors on customers and jobs by Item.  If you use QuickBooks to record how you, your employees, and/or your subcontractors spend their time, you can:
  • Pay a subcontractor based on hours worked
  • Create paychecks for employees based on time data
  • Get job cost reports that automatically include labor from paychecks and subcontractor bills
  • Invoice customers for time spent on a project
  • View reports showing billed, unbilled, and unbillable time by customer:job, item, and employee or subcontractor

This article is the first in a series on using QuickBooks to track time.  This month we'll cover setting up time tracking and entering time manually in QuickBooks.  Future articles will cover invoicing customers for time, paying vendors for their time, importing time data from other sources, and using time reports.

Setting Up QuickBooks for Time Tracking
 
Before you can begin entering time into QuickBooks, you must set several preferences.  Log into QuickBooks as Admin.  From the Edit pull-down menu, select Time & Expenses.  On the Company Tab, make sure that the preference to track time is turned on and select the first day of your work week.  This is the first day of the week that will appear on your weekly timesheets; the timesheet workweek does not affect your payroll periods.  If you will be billing customers for time spent on projects, check the box to "Create invoices from a list of time and expenses".  
 
Leave the Time & Expenses preferences and go to the General preferences. Select whether you prefer to see time displayed in decimal fractions of an hour or in hours and minutes.  This preference only affects how the time is displayed.  You can enter time in either mode and QuickBooks will convert it to the preferred display.
 
If you will be tracking time for employees to be used on paychecks, you must also go to the Employee Center and edit the employee information.  Check the box to "Use time data to create paychecks" under Payroll & Compensation.  In addition, if you will be tracking all of your employees' time in QuickBooks rather than just project-related time, you will need to add overhead items to your Items list.  These might include things like: vacation, holiday, internal meetings, non-billable travel time, administrative tasks, etc. These aren't items you will ever purchase or sell, they are strictly for reporting purposes.  When you set them up, assign them to a general income account such as Sales or Service Income or to Other Income.

Entering Time Manually

Once the time tracking preference is turned on, you will find "Enter Time" in the Employee Section of the Home Page or on the Employee pull-down menu.  You can enter time one activity at a time or on a Weekly Timesheet.  No matter what entry method you choose, all time activities appear on the Weekly Timesheet for the Employee or Vendor.
 

Weekly Timesheet

 
To record time for a subcontractor or employee select their name in the Name field.  It you are using a Weekly Timesheet, be sure to select the correct week.  If the time is billable, select the Customer:Job to be billed.  If the time is not marked billable, the Customer:Job is optional.  Overhead time can be recorded without a Customer:Job.  However, you may prefer to set up one or more internal customers and jobs against which you can record overhead time.
 
If you are recording time for an employee and you have checked the box to "Use time data to create paychecks", you will also be required to input a payroll item.  Enter the employee's regular payroll item.  Note: paychecks created from timesheets for salaried employees will show their weekly salary regardless of how many hours are recorded on the timesheet.  However, payroll costs shown on job cost reports will be spread across the number of hours on the timesheet.

Time entry notes can optionally be pulled into the description field on customer invoices.
 
Enter the duration of the activities in the columns of the Weekly Timesheet, save and close.  If you are using the Single Time Activity window, enter the time duration in the box or record it using the stopwatch feature while you work.  When you are done, stop the timer and save the time activity.
 
If you checked the box "Create invoices from a list of time and expenses", the next time you invoice a customer with billable time, you will be prompted to add the time.
 
QuickTip of the Month
 
Moving a CreditRemove a Vendor Credit from a Bill
 
I used to think that the only way to remove a credit from a Vendor Bill was to delete the credit and re-enter it.  However, here's a slick trick from the QuickBooks Knowledge Base.
  1. Open the Vendor Bill with the credit incorrectly applied to it. 
  2. Enter an * in front of the Vendor Name and press Tab to move to the next field.
  3. Click Quick Add in the Vendor Not Found dialogue window.  Save & Close. 
  4. Reopen the same Vendor Bill and change the Vendor name back to the original name.  Save & Close.
  5. Go to the Vendor Center.  The newly added "*Vendor Name" will appear at the top of the list. 
  6. Select the vendor name and from the Edit pull-down menu, choose Delete Vendor.
 You may now apply the credit to the appropriate bill.
 
QuickBooks 2007 Service Discontinuation
 
Out of ServiceOn May 10, 2010, Intuit will discontinue support of QuickBooks 2007 for Windows and QuickBooks Enterprise Solutions 7.0.   After this date, you will no longer be able to access services from within QuickBooks 2007.  These services include: subscription Payroll Services, Merchant Services, Online Banking, Bill Pay, Billing Solutions, and QuickBooks Email Service.  If you don't use these services, you may continue to use QuickBooks 2007.  However, no live technical support or product updates will be available after May 10th. You can continue to search the QuickBooks Knowledge Base for answers to Frequently Asked Questions and solutions to known problems.  You can find more information on QuickBooks Service Discontinuation for these products at 
 
banner 2I hope you found these babblings useful.  Your feedback is important to me.  Please drop me a line and let me know what you think.
 
Sincerely,
 
Susan Dugdale
Caesar's Brook Business Solutions, LLC
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