Hello SC97, When you enter time in QuickBooks, you don't need to manually input the hourly rate each time. The system pulls it automatically from your configured settings. There are three different types of rates, Billable, Pay, and Cost and each serves a specific purpose for the time entry.
Before entering time, ensure you have enabled Time Tracking to accurately track and bill customers for hours spent on a project/work. Here are the rates specific purpose and how to set them up:
• Billable Rate is what you charge your customers. To set this up, go to the Gear icon, select Products and Services, and create New product/services or edit a Service item (e.g., "Consulting"). Enter your Price/Rate (e.g., $75) and Save. This rate will appear on customer invoices.
• Pay Rate is what you pay your employees. If you use QuickBooks Payroll, set this under Payroll dropdown > open one of employees to edit. In the Base pay section, enter their hourly rate (e.g., $25).
• Cost Rate is an optional internal rate used to track project profitability. To set this up, go to Projects, select the transaction type (invoice, expense, etc.). This helps you see internal labor costs without affecting payroll or customer billing.
If you use the QuickBooks Time app, employees enter their hours there for manager approval. Once approved, the hours sync to QuickBooks Online, and all three rates are applied automatically. The Billable rate for invoicing, the Cost rate for project tracking, and the Pay rate for payroll. Refer to this article for complete steps: Track and manage QuickBooks Time in QuickBooks Online.
To enter time directly in QuickBooks, click + New and choose Single Time Activity. Select the employee, customer, choose the Service item you configured, and make sure you check the Billable (/hr) box to reveal the rate field. Once you enter the hours, the system will automatically calculate the totals based on your pre-set rates.
Please don't hesitate to leave us a response if you have other questions or concerns.
