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 

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. 

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!