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.

@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.

I've been researching the same issue and it does duplicate.  Does this only work if your subs are billable?  We have fixed contracts so I don't enter my subs as billable.

I'm here to provide you with some tips on how to keep track of your billable charges, @michellerulo.

A billable expense is one that you spend on behalf of your customer when you do work for them. You can quickly record and manage billable charges so that when your customer receives their invoice, they may refund you.

Adding transactions to projects does not affect how they're classified or on your accounts. You're merely tagging them as part of the project so you can keep track of the income and expenses for that particular project.

When you make a bill, expense, or check, it will be based on the accounts you'll be using, so there won't be any duplicate entries.

Check out these articles for more information on projects and billable expenses:

• Set up and create projects in QuickBooks Online
• Enter billable expenses

Check out this post to learn how to record, amend, and delete expenses in QuickBooks Online: Enter and manage expenses in QuickBooks Online. 

If you need any more assistance with your expenses or anything else, I'm always available. Simply let me know in the comments section below. I'm always happy to lend a hand in any way I can. Stay safe and enjoy the remainder of your day!