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Cost of Labor - COS vs Payroll Expense

Just started using QBO for a carwash in which at this time i simply need to track my labor costs.


Should i classify labor in the Cost of Labor - COS category so that it show up in the gross profit calculation or as a payroll expense in which it will then show up in the net operating income calculation?


I eventually plan to use QBO for timekeeping / scheduling and doing payroll and would prefer to not have to make changes if this plays a part in where to classify it.

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