Connect an App to QuickBooks to Do the Job
QuickBooks Online lets you track employee hours working for a client, but only to a point. For more complex work situations, you will do better with an app that integrates with QBO. More and more companies these days sell services by the hour. If your business does this, you know how true it is that “time is money.” Accurate time-tracking down to the minute is critical for the success of your business. And, you need to be able to differentiate between hours worked and hours worked for customers (and which customers). QuickBooks Online has tools for such tasks.
But, QuickBooks Online has some limitations in this area and those limitations could be costing you money. If you need more versatile and robust time-tracking than you are getting from QuickBooks Online, you will be able to use an application (app) that integrates smoothly with QuickBooks online and does exactly the job that you need. Several time management tools are available. If you need help deciding which will be best for your business, contact us for help choosing and starting to use the right one.
It is easy to set up QuickBooks Online time-tracking tools. And, they are easy to use. (Just make sure that they are turned on!) Simply click the gear icon on the upper-right of the screen. Then click Account and Settings under Your Company. Click the Advanced tab. The go to the Time Tracking area. Click the top two check boxes to Add Service field time to timesheets and Make Single-Time Activity Billable to Customer. Unless you want employees to know how much you are billing customers, leave the box unchecked for Show billing rate to users entering time. If you want, you can change the First day of work week on this form. Save and you are all set.
After you have enabled time-tracking, you can fill in timesheets and mark them as billable as appropriate or enter timed activities one at a time. Employees can put their hours on the timesheets and later the billable hours will be transferable to customer invoices.
Although QuickBooks only does just so much for time-tracking, it has numerous add-on apps for excellent time-tracking. These integrate smoothly with QBO using built-in tools and they are programmed to identify the necessary data and for identification and synchronization. These apps capture the necessary hours and related information and put in timesheets that are inserted promptly into QuickBooks Online. At that point QuickBooks Online is able to transfer these billable hours to customer invoices (automatically). Furthermore, QuickBooks Online can then use this same information for payroll and job costing tasks.
Here is an example. This shows you how the setup process works for TSheets which is one of the more popular time-tracking apps that integrate with QuickBooks Online. After you have created an account (or are using the 14-day free trial), simply click the Feature Add-ons link (lower left of the screen). Then click Manage Add-ons.
Choose QuickBooks Online on the list. Then click Connect to QuickBooks. Then click Connect one more time to create the link. You will answer a few questions about import preferences and then click Start Import. What TSheets does is import from QuickBooks your customers, employees, service items, and other information which you have specified.
One task may require help. This is when you set up the Payroll Item Mapping Tool. This tool makes sure that pay types used in TSheets matches the salary, overtime, and others that you use in QuickBooks Online. There are also a number of internal setting that you will need to attend to before you can begin to use TSheets.
The various time-tracking tools that integrate with QuickBooks Online each have their unique aspects. But, they all do the same thing. They make sure that your employees are paid for work done for clients and that the clients are properly billed for that time. And they do it smoothly and efficiently with precise documentation.
The prices for these products vary. However, they typically charge a base fee for each month and then a fee per extra user.
• Can use a virtual time clock to “punch” into and out of individual jobs, using both desktop and mobile. Facial recognition may be available for added security.
• Timers and time cards for recording work hours
• Ability to record time off and breaks as required by company policy.
• Can track time even when Wi-Fi or cellphone service isn’t available.
• Use mobile app to check and approve timesheets
• Scheduling of shifts and assigning of employees
• Identify who is currently working and find them using GPS
• Generate live, real-time reports
If your business charges lots of work done for customers by the hour, you need a modern and efficient time-tracking tool. There are several of these that integrate well with QuickBooks Online. However, you will need to choose the best one for you without having actually used it. And, when you have it, you will need to learn to use a brand new software tool. Because these QuickBooks Online time-tracking apps affect both customer billing and payroll, you need to get it right from the beginning. If you would like some help choosing the most appropriate add-on for your QuickBooks Online and also with using it correctly, please contact us so that we can help.