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Level 1

Tracking Time for Vendor in Projects

Hi,
I just started to use Projects in QBO, my concern about Tracking Time for Vendor in Projects is that the Projects overview shows me the Hourly Time Cost separate from the Cost of Good Sold. So, that's fine since I didn't pay yet those vendors the current week.

After some researches I made, I found out that I have to create the bill, expense or Checks to pay them, and the Tracking Time Report will be my backup document.

My doubt is, if I create a bill or check I need to select a Cost of Good Sold account,  that makes me believe that in the project overview will be duplicate the expense. 

So, What would be the best way to register this payments?

Do I need to separate them?

Thanks

2 Comments
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Moderator

Tracking Time for Vendor in Projects

Thanks for reaching out, @AndySoto. I'm happy to help out here.

 

I recommend checking out this video on using Projects to Track Project Income & Costs:

 

Alternatively, you can also check out this awesome article: Set up and create projects in QuickBooks Online

 

Due to the nature of your question, it would be best to consult with an accountant if you still have questions. They have the knowledge and expertise necessary to make these types of recommendations and would be able to get you back to business as soon as possible.

 

Let me know if you have any other questions. I'll be here to help. Have a good one.

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Level 15

Tracking Time for Vendor in Projects

@AndySoto 

 

Food for thought

 

COGS is inventory sold, especially on the tax form you file, a better choice would be a COGS type account and select the detail account as COS, Cost of Sales.

 

A vendor / contractor is in business for himself, as such he does a job for you and bills you for his time, materials, and mark up.  In an audit that bill, the paper trail, is important for verifying that you had the contractor relationship.  If an auditor decided that contractor is really an employee (see the attachment) things can get messy with back payroll taxes, worker comp etc etc, penalties and interest too.

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