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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?

5 Comments
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 

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.
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
Level 1

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

I know this is old. But i need a lot of help!! To piggy back on this question. On invoices, i have two lines, Labor and 2nd line materials. What account should the "materials" line be? Right now it automatically went into COGS. Which is making my P&L sheet look weird. Please please help! I have spend HOURS with quickbooks and turbo tax on the phone for the past Three weeks!! Thank you. 

Level 1

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

Ok. So, you have COA Great! Which Account do you use to invoice labor? I just lost all my previous invoices and can't find them trying to switch to the proper account. AHHHHHH! Be specific! Not just oh Income or payables. Is Construction income, Account receivable, Accounts payable, I know it's not COG's. But 2020 contractor edition desktop screwed everything up. the last version was way more simple. Not to mention in preferences there is not a heading for invoices. REALLY!

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