A client of mine is a staffing company (temp agency) that uses QB Online Plus to record their financial transactions and Avionte (integrated, CRM and ATS system, payroll & billing platform) to invoice clients for the temps and pay temps payroll, withholding taxes, and employer taxes and contributions associated with their temps. Billing and payroll is run weekly and summaries by client are imported (some manually entered) into QB Online.
Payroll costs (gross pay and employer taxes and obligations) are a Cost Of Sales for a staffing business, impacting the gross margin. Gross margin percent is the most relevant financial metric for a staffing business.
Currently their books post temp payroll costs as expenses, such as how you'd do it for internal staff (sales, CRM, recruiters, finance, HR, etc.).
I am new to QuickBooks and would appreciate some direction of how to:
a) Setup QB to post Temp Payroll, Taxes + Employer Taxes/Obligations as COS.
b) reclassify history (i.e.: move booked payroll++ from expenses to COS).
As for your other concern, in QuickBooks Online Accountant, we have the reclassify tool which gives the option to batch edit transactions. Like you can reclassify accounts, classes, and sales tax code in bulk.
However, there are also accounts that you can't move. Some of these are:
You can change the class for invoices, salesreceipts, checks, or bills with items (products or services) on them. However, you can’t change the accounts.
You can’t change the payment account (bank or credit card) for expenses.
You can’t change the account or class for inventory adjustments since they’re connected to your inventory shrinkage and asset accounts.
You can change the expense account for billable expenses, but not the income account for the related income transactions.
You can manage your payroll transactions in the Payroll menu.