Using QuickBooks For Job Costing - Establishing Payroll

A lot of companies think that establishing payroll in QuickBooks for job costing is frustrating and hard. So you will find several steps that should be taken to ensure that payroll circulation correctly towards the job costing reviews, especially if you wish to include payroll taxes and benefits, however the step-by-step instructions below can help show you with the setup.

Since labor is often the greatest expense for many companies who're doing job costing, it's very important it be incorporated inside your job cost reviews. If you do not, then jobs will appear more lucrative than they are really. A whole lot worse, a number of them could even be taking a loss without you realizing it. This not just affects your current situation, but can lead to create inaccurate estimations for future jobs.

Here would be the steps for establishing payroll for job costing in QuickBooks:

Setup Preferences:

1. Visit Edit > Preferences > Company Preferences and choose Payroll &lifier Employees

2. Choose "Full Payroll" or "Complete Payroll Clients"

3. Check "Job Costing, Class and Item monitoring for salary expenses"

4. Visit Time &lifier Expenses

5. Choose Yes under "Would you track time?"

6. May should also check "Create bills from a listing of your time &lifier expenses"

Setup Payroll Products:

1. Visit Lists > Payroll Products

2. Edit every Addition and Company Contribution item to make sure that "Track expenses by job" is checked

3. Payroll products are only able to map to 1 expense account, so you might want to setup separate ones for COGS and overhead payroll expense

Setup Worker Records:

1. Visit the Worker Center and double-click worker title

2. Change Tab to Payroll &lifier Compensation Info

3. Check "Use time data to produce income"

Setup Default for brand new Employees:

1. Visit the Worker Center and choose Manage Worker Information > Change Worker Default Configurations

2. Check "Use time data to produce income

Setup Employees Comp:

1. Setup employees comp at Employees > Employees Compensation > Setup Employees Comp

2. Setup your employees comp codes at Employees > Employees Compensation > Employees Comp List

3. Visit Lists > Payroll Products to double-make sure that the Employees Comp payroll item has "Track expenses by job" checked

Using Timesheets

1. Visit Employees > Enter Time > Use Weekly Timesheet

2. Complete information including both a payroll item &lifier something item (they are different) - mark as billable should you choose time &lifier material billing

3. You might want to give a customer:project for overhead

4. Think about using Time Tracker or WorkTrack Time Card so employees can enter their very own time