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Tl76
Level 1

Job Costing with Outsource Payroll

I can use the job costing feature to assign invoices to certain jobs. However, since we do not use QB for payroll and an outside source does this for us and only post a JE into QB's. I would like to know how the best way to add labor costs to certain jobs. Since we make a single JE to post payroll expense to the GL, I need to make sure that we do not double up on any payroll expense or any balance sheet accounts as well. 

7 Comments 7
JessT
Moderator

Job Costing with Outsource Payroll

Hi Tl76!

 

Welcome, and thank you for getting help with entering your payroll data.

 

I'm happy to share an article with detailed steps on how you can reflect your data in QuickBooks. Please check this out: Manually enter payroll paychecks in QuickBooks Online.

 

Please don't hesitate to go back to this thread if you need more assistance with your transactions. Take care always!

lovrence778
Level 1

Job Costing with Outsource Payroll

So i read this article today called 'Payroll Service Buying Guide for 2017' that talked about services a payroll company should offer and how it helps a small business. I have just 4 employees and process everything manually but it's a difficult experience for me. Does anyone know if its worth outsourcing your payroll for such a small number of employees? I was looking into iBusinessSolutions or Paychex. Anyone have experience with these companies?

 

 

skylightpaycard

Angelyn_T
QuickBooks Team

Job Costing with Outsource Payroll

I appreciate you for joining the thread, Lovrence.

 

I'm here to share with you some information about QuickBooks Payroll subscriptions.

 

To ease the process of tracking your employees' transactions, you may use our QuickBooks Payroll service while working with QuickBooks. Payroll prices depend on the plan you need. It has a fixed price and an additional fee per employee per month. Meaning, the fewer employees you have, the lesser charges you get.

 

To learn more about the different plans and pricing for both QuickBooks Desktop (QBDT) and QuickBooks Online (QBO) Payroll, you can check out these links:

 

 

On the other hand, you may reach out to the iBusinessSolutions or Paychex developer to learn more about these apps. They are the ones who can provide you with the details on how the applications work for you and your business.

 

Please let me know how else I can help you with QuickBooks or payroll. I'm more than happy to provide additional assistance. Keep safe!

JoAnnARS
Level 2

Job Costing with Outsource Payroll

Good morning - The article does not answer the question regarding job costing using an outside payroll service.  It only gives the general expense and liability categories...   Is there a way to job cost (for a construction company) in quickbooks pro using an outside vendor.   I track the employee hours and would like to attribute the related costs to the appropriate jobs.  

 

Thank you.  

ZackE
Moderator

Job Costing with Outsource Payroll

Thanks for joining this thread, JoAnnARS.

 

You can start tracking job costs by setting up a Customer:Job for each of your jobs, assigning expenses, entering estimates, and creating the appropriate invoices. Afterwards, you'll be able to run Job Costing reports to see how your business is doing on a job-by-job basis.

 

Here's how:

  1. Create a Customer:Job for each of your jobs, even if there's only one job for a particular customer. This allows you to keep track of the income and expenses for each job and can simplify your bookkeeping if you add another job for that customer.
  2. Assign all expenses to jobs to get a complete job cost picture.
    • For Billable Time - Record the hours spent on a job using either a weekly timesheet or a single activity entry and assign your hours to the customer or job. Each entry is automatically checked in your Billable column. It's important to keep in mind that timesheets are a non-posting entry and must be imported to a bill or invoice to include it in the Job Profitability or Company Financial reports.
    • For Job-related Purchases - Use a bill, check, or credit card charge to record your purchases. On the Items tab, enter each service or item you purchased. Be sure to assign each service/item to the customer/job in the Customer:Job column.
    • For Overhead Expenses - If you choose to allocate overhead expenses to specific jobs, I'd recommend reviewing our How to calculate and track overhead costs article. Intuit also recommends working with an accounting professional before making any changes relating to overhead expenses. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. Each ProAdvisor listed there is QuickBooks-certified and able to provide helpful insights for driving your business's success.
    • For Mileage - Enter mileage in the Enter Vehicle Mileage window. If the amount for your expense needs to change, it can be updated on its invoice.
    • For Other Expenses - Use a bill, check, or credit card charge to enter these types of expenses. In the Customer:Job column, be sure to assign each expense to the appropriate customer or job.
  3. Enter your estimates.
    • You can create estimates in or outside of QuickBooks. If you'd prefer to create estimates with a spreadsheet or by other means, you can record summary estimates into your books.
    • If you create estimates outside of QuickBooks, but you create invoices in the program, you can enter your invoice details in the Create estimates window to turn your estimates into invoices.
    • You can use some job costing reports without entering estimates; however, recording estimates in your books allows you to use the full range of Job Cost reports to confirm your project budget is on track. You can evaluate the accuracy of your estimates and adjust them appropriately for future projects if necessary.
  4. Create the appropriate invoices.
    • Confirm the correct Customer:Job is selected when creating invoices.
    • If you prefer to create invoices outside of QuickBooks, make sure to enter at least a summary for each of them into your books so it includes the revenue in your Job Profitability reports.

 

Once all of the data's entered, you can run your Job Costing reports and review their information:

  1. In the top menu bar, go to Reports.
  2. Select Jobs, Time, & Mileage.

 

I've also included a detailed resource about tracking job costs which may come in handy moving forward: Track job costs

 

Please feel welcome to send a reply if there's any additional questions. Have a wonderful day!

adivabookkeeper
Level 1

Job Costing with Outsource Payroll

Actually, if your are outsourcing your payroll, the timesheets are non posting, but since you do not pull into payroll to pay, they do not post to the profitability report.  We use ADP and I have to manually enter thru journal entries the labor to post to the P&L report.  I pulled the Job Profitability Reports to check what was mentioned in the response above, and it does not post, unless you enter it.   Please, is I am missing a step or other information, I would be glad to here it..  

Candice C
QuickBooks Team

Job Costing with Outsource Payroll

Greetings, @adivabookkeeper

 

Thanks for chiming in on this thread. 

 

The best route, since you're using an outsource payroll, is to enter the details manually. 

 

This will ensure that the information is listed in the reports you'd like to use and review. 

 

I hope this helps answer your question. Feel free to reach back out with any other concerns you have. Take care! 

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