Time Tracking for Project

QuickBooks Online requires an employee or vendor profile set up in the system to track hours for project management, NIPPAERO. Let me explain how time entry works in this platform.

Time entries in QBO are considered non-posting transactions. This means that simply tracking time doesn't automatically impact your financial reports or payroll. Even if you've set yourself up as an employee, these time entries won't appear on payroll reports by default.

For time entries to be reflected in your payroll reporting, they need to be specifically included in paychecks. This gives you more control over how time data is used and ensures that only relevant, compensated hours are factored into your payroll calculations.

Additional details about tracking hours are discussed in these articles:

• Enter billable time by job in QuickBooks Online
• Track hourly labor costs and profitability by project in QuickBooks Online

Now, let me share these steps on how to set up yourself as an employee:

1. Go to the Payroll menu, then proceed to the Employees tab.
2. Click Add an employee, then add all required details. 
3. When finished adding all details, select Save.

Once everything is set, follow these steps on how to track your time:

1. Go to the Projects menu and select a project.
2. Click Add to project and choose Time.
3. Enter all required details about the time and click Save.

After that, it will appear in the Hourly Time Cost section of the project, but it will not be counted as part of your expenses yet.

From there, you can add the time when invoicing your client for the work completed. For guidance on this process, let me share this article with you: Invoice customers for project expenses in QuickBooks Online.

Don't hesitate to reach out to out again if you encounter any challenges or have additional questions about time tracking, project management, or invoicing in QuickBooks Online. Our network of users and experts is always ready to assist you in maximizing the potential of QBO.

So as an “Admin” I can add myself as an employee and track my time. What happens when I run payroll? Do I have to run it for my time as well? Do the hours bulked to the customer have to also be paid to the employee (me)?

Ok. I read through your solution and tried it ion Quickbooks. It worked. Thank you so much.

Your detailed response is valued, NIPPAERO.

I appreciate you getting back to us and confirming that the suggestions have fixed the issue. On behalf of my colleague, you're always welcome. Please know that it's our pleasure to address any questions or concerns using QuickBooks.

Additionally, you can run various payroll reports (Standard or Advanced) to ensure you pay yourself accordingly or pull up financial reports to gain a comprehensive insight into your business and bookkeeping.

If you need additional assistance paying yourself in QuickBooks, tick the Reply button. I'll ensure to take care of you accordingly.

Does this also work if my hourly employees clock in and out using the work force app?

I was told by the QBTime Rep that the only way was to have the employee toggle from project to project using the timer, which does not work for our situation. Before I cancel QB Time and Payroll I would like to know if this will work? Currently employees clock in and out 8 hours, then they also log the project specific billable time for each project, this is causing a problem with payroll because it is adding the billable hours and time clocked hours to payroll. 

Hey there, @Rightoway. 

Thanks for chiming in on this thread. 

Yes, QuickBooks Workforce allows employees to clock in/out for the day while separately tracking project time, but you must configure settings to prevent double-counting hours in payroll. Employees can clock in, and separately log project hours, which QuickBooks Time handles.

How to Fix the Double-Counting Issue
 

• Use "Project" Toggle Only: Instead of a total hours clock-in and separate project logs, configure the app to require project selection at clock-in. Employees clock in, select a job, then "switch" jobs, ensuring total time equals project time.
• Disable "Allow Time Entry without Clocking": Ensure that employees are not adding manual hours in addition to their clocked time.
• Review Timesheets: Admins can edit timesheets in QuickBooks Time to ensure total hours equal the sum of project hours before approving for payroll.

By having employees change projects in the app, rather than just clocking in, the hours will align, preventing payroll, which relies on QuickBooks Time, from doubling them.

Feel free to reach back out if you have any other questions. I'm only a post away. Take care! 

Thank you Candace. The toggle between jobs did not work for our team. There are times when our team holds meeting that needs to be divided among different projects. Also, our team often forgets to toggle and switch projects  leading to many corrections. My perfect solution would be only time clocked in /out maps to Payroll. Anything marked billable or directly input into the project time would not Map to Payroll. Currently there is no role option for my team to set them up so the can be added as time tracking only in the project as a project manager. Is there an option to request customization for our company or a work around without having to cancel QBTime and payroll and handle payroll outside the QBO app?

Hello there, Rightoway.

One of my colleagues has already shared a solution to address your concern.

For your convenience, click on this link to access their suggestion: https://quickbooks.intuit.com/learn-support/en-us/employees-and-payroll/qbo-posting-billable-time-wi...

If you have any additional questions, click the Reply button below.