I can help clarify this for you, @zerkasgs. The format you should use depends on where you're entering the time and the specific values you're working with in QuickBooks Online (QBO).
The hh:mm or hourly format is suitable for any fields that require hours, such as timesheets and paychecks. Using this one ensures accurate time tracking down to the minute, which is essential for payroll calculations and project billing.
Yet, if you're creating invoices in QBO based on time entries, the program automatically converts the time from hh:mm format to decimal. This conversion occurs because the Quantity field only accepts decimal values.
If these details don't address your needs, please let me know. Any additional information would help us provide a targeted solution. You can also check out this article containing details about updates and enhancements within QBO that can potentially simplify your workflow: QuickBooks New Features and Innovation.
If you encounter any issues while entering hours or if you have QuickBooks-related concerns, please don't hesitate to comment below.