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Level 2

QBO Project Profitability Report, Not Reporting Accurate Payroll Expenses

We use Time to enter hours spent on projects for both hourly and salary personnel. I've noticed if a salary employee is only working on one project for the pay period, the entire paycheck gets coded to that particular project. For example, employee A works 8 hours on Project 1 but the full 80 hour paycheck for $3,000.00 gets posted to Project 1. This causes the Project Profitability report to be way off, showing the project losing money. Any way to fix this?

Thank you!


6 Comments 6
QuickBooks Team

QBO Project Profitability Report, Not Reporting Accurate Payroll Expenses

Let me help to sort this out , mrushing54.

To get accurate report, we' don't need to enter hours on the same row to customer/project if 1 specific date of employee is working. You can simply edit your timesheet to separate hours and choose the correct employee or vendor from the first drop-down menu. Under the Details section, choose the correct project or customer. The Qty column is the number of hours, and the Rate is the billable rate per hour. The Amount column shows the total billable amount per day. Check out this article for more information about this process: Track and manage timesheets in QuickBooks Online


To know more about how Project feature works in QBO, check these articles:



Drop me a comment below if you have further questions about reports. I'll always have your back.

Level 2

QBO Project Profitability Report, Not Reporting Accurate Payroll Expenses

We actually clock in/out using the QB Time app, and we choose the project we're working on. I assume the issue is that I don't have a pay rate noted for these particular employees in TSheets. Could that be the resolution? I assumed QB Time and QBO communicated with each other.


QBO Project Profitability Report, Not Reporting Accurate Payroll Expenses

I can provide you with additional information about how information syncs in QuickBooks Online (QBO), @mrushing54.


Once you've integrated QuickBooks Time and QuickBooks Online, you must set the Use QuickBooks Online for payroll box in the QuickBooks Online Integration Preferences. This way, it'll be mapped automatically to your payroll items in QBO. 


You can go to your settings to check or make some adjustments. Check out this article for detailed guidance: Map QuickBooks payroll items to QuickBooks Time.


Also, the payroll expenses will only post to your project after you've run payroll. Once you've set up your payroll expenses and your hourly costs, you can use either one to see your project's labor costs.


Refer to this article for more information about payroll expenses and hourly cost estimates: Track hourly labor costs and profitability by project in QuickBooks Online. This will guide you further in setting up payroll expenses in the chart of accounts, adding project timesheets, and many more. 


For further guidance on how to run and customize reports in QBO to get the most out of it, see this article: Customize reports in QuickBooks Online


I'm always here to answer any questions that you have with your report. Just let me know in the Reply section below. Have a great rest of the day!

Level 2

QBO Project Profitability Report, Not Reporting Accurate Payroll Expenses

Unfortunately, this does not answer my question. We integrated over a year ago. I've been running payroll and syncing TSheets for years now, so I'm pretty familiar with that process. We have hourly and salary workers that strictly use Time for all of their hours, and our project profitability reports reflect their hours accurately. However, we have 1-2 employees who occasionally work on a project and will charge some hours to a project by clocking in on the Time app or entering hours via TSheets online prior to payroll. I think the issue may have been that we did not have their salary entered on Time, so I will troubleshoot on my own....unless someone can provide an answer that relates to my original question. Thank you!

Level 4

QBO Project Profitability Report, Not Reporting Accurate Payroll Expenses

It still isn't accurate. I have commented on this several times. The report is 100% useless. Most of the time, the actual amounts don't even get downloaded like costs and the project will show 100% profit. The time accounted for on projects is also not accurate. I was just looking at this today and to see if it was better and I literally have time that is accurately assigned in Time and checked on their timesheets as one project but the time is showing for the same pay period on a completely different project. I don't trust the project costing at all.


QBO Project Profitability Report, Not Reporting Accurate Payroll Expenses

Hi lmoorecalvarydevsvcs,


I understand how it feels when certain reports are not showing the right amounts. However, it's hard to agree without checking your records.


Have you tried doing some steps like signing in to QBO using a private browser and clearing your cached files? This is to check if the wrong information is caused by random browser issues.


Alternatively, you can contact our QBO Support so they can use a screen-sharing tool to view your transactions. In this way, they can create a report if they find discrepancies on your records.


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