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Level 1

In my invoice, how do I enter labor vs. material so that my profit and loss is accurate?

I use the invoices as a means of billing.  When I receive payment I enter the check from the customer and it shows paid.  I would like quickbooks to accurately reflect our profit and loss for taxes.  I was told this info is pulled from my invoices?  I was also told I need to set up my Chart of Account but I was hesitant as it wanted to like my bank account.  Can someone help?

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Level 2

In my invoice, how do I enter labor vs. material so that my profit and loss is accurate?

Hello,

Yes, you need to have the Accounts set up in the Chart Of Accounts.  This includes the Bank Accounts, Fixed Asset (what you own), Liabilities and Credit Card (how much you owe), Income (how much you earned), Cost Of Goods Sold (Items purchased for jobs) and Expnese (what you purchased for your business) Accounts.

Then, you go to the Items List and set up Items.  The Items are what you select  in Create An Invoice and Enter Sales Receipts.  The Items are mapped to Accounts in the Chart Of Accounts, such as Income and Cost Of Goods Sold. 

To get accurate information on the Profit & Loss, you need to have Items mapped correctly so the information shows in the Accounts.

Laura Kaniuk - LJK Bookkeeping Services 

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Level 1

In my invoice, how do I enter labor vs. material so that my profit and loss is accurate?

Wow! Thank you! This info has been spot on and you have been more helpful to me than calling Quickbooks.  Thank you so much. One more question.  Does this mean I have to connect the bank account to QB?  When I went into Chart of Accounts, it asks for login and pass for my bank account.  I would rather not link the two if I can avoid it.
Highlighted
Level 2

In my invoice, how do I enter labor vs. material so that my profit and loss is accurate?

You do not have to use Online Banking.  If it is turned on now and you don't want it, go to the Chart of Accounts, right-click on the Bank Account and select Edit Account.  Click on Online Banking and turn it off.

Glad to help, ariesram7!

Laura Kaniuk - LJK Bookkeeping Services

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