We appreciate you sharing your concern here in the thread, Jd265. Allow me to share information to address your concern regarding tracking labor costs without running payroll.
In QuickBooks Desktop, creating timesheets and invoicing them to your customers will only affect your revenue, not the cost. Therefore, you need to run payroll to show costs in your reports and track profitability by job.
In the meantime, you can create a journal entry and utilize a clearing account if you don't want to run payroll. With this, I recommend seeking guidance from an accountant to determine the suitability of this method to your business structure.
To begin with, here's how to create a clearing account:
- Click Chart of Accounts from the Lists menu.
- Right-click anywhere in the Chart of Accounts page, then pick New.
- Select the Bank radio button in the Add New Account window.
- Click on Continue and key in Clearing Account, Barter Account, or Wash Account in the Account Name field.
- Avoid adding an opening balance, then Save & Close.
After that, you're ready to create a journal entry using the clearing account you just created with the guide of this article: Create a journal entry in QuickBooks Desktop for Windows or Mac.
On the other hand, you can scan these resources to help you generate and modify your report to display essential details depending on your business needs and save its current settings for future use:
The Community is always available for additional questions about tracking labor costs or other concerns related to QuickBooks Desktop. Just add a Reply on this thread or post directly in the forum.
