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dawnjohnson
January 8, 2021
Question

We have an engineering consulting business. Sometimes we create an estimate for hourly billing to a maximum amount (say $10,000). How do I account for this?

  • January 8, 2021
  • 6 replies
  • 38 views
My issue is that the hourly billing rates differ depending on the employee bill rate ($200, $175, $125, etc.). I have set up my estimate as Hourly Billing for $10k. But I might have 3 line items (for the 3 employee bill rates) that all should come off the total estimate amount. I'm trying to make sure I don't bill over the $10k. Hoping this makes sense. Thanks!

6 replies

Pabz_L
Pabz_L
January 9, 2021

Let me share some information about the hourly cost rate, @dawnjohnson.

 

Paying your employee's hourly cost rate reflects as an expense on the job. Please know that when you set an hourly cost rate, it calculates the total cost of your employee that works for your business. 

 

 To account for this correctly I suggest getting in touch with your accountant to get the best advice. 

 

 Also, you can use these articles as a reference for the hourly cost rate:

 

 

Just hit the Reply button if you have any other questions. I'm always happy to help. Thanks for dropping by.

 

Fiat Lux - ASIA
Fiat Lux - ASIA
Level 14
January 9, 2021

@dawnjohnson 

Consider having a time tracker app to integrate with your QBO account. You may stay on budget by creating limits on hours billed for tasks.

D
dawnjohnsonAuthor
January 10, 2021

We use TSheets for keeping time.  I don't think I asked my question clearly, though.  Hypothetically, if I have a $10k budget for a project, is there a way in QBO to keep track of how much has been charged against that budget if I am billing the client at different hourly rates depending on the employee who performs the work?   The majority of our projects use progress invoicing.  There is an estimate summary available on the bottom of the invoice.  Not the case if I'm billing hourly.

M
MaryAnn_E
Level 4
January 10, 2021

Hi there, @dawnjohnson.

 

 

It's nice to see your post in the Community today. Allow me to help share some information about using the Projects feature in QuickBooks Online.

 

QuickBooks Online Budgeting feature uses the expense and income. To create a Project budget, you have the option to subdivide the budget per project.

 

Here's how:

  1. In the upper right corner, click the Gear icon.
  2. Under Tools, choose Budgeting.
  3. Select the Add budget button.
  4. In the Name field, enter a budget name.
  5. From the Fiscal Year drop-down, select the fiscal year for the budget.
  6. Use the options on the Interval drop-down menu to specify whether the budget is Monthly, Quarterly, or Yearly basis.
  7. From the Subdivide by drop-down, select Customer then chooses the project. 
  8. Select Next.
  9. Enter the amount per account, then click Save and close.

You can learn more about managing budgets here: https://quickbooks.intuit.com/community/Income-and-expenses/How-to-create-edit-and-manage-budgets/td.

 

If you hav

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