and now we will learn something that attorneys are required to do as part of their books and
records tracking expenses and costs per client attorneys are required to track costs per client
this is especially important if you are billing the client for the job related costs the profit
and loss by job report is what most companies would use to track their income and expenses
for a particular customer or a particular job with attorneys we can call this report profit
and loss by client but it's basically the same report and it does the same thing however even
though writing checks and entering bills for an attorney would be the same as writing checks and
entering bills for any other company the only additional step that you need to take when you
write checks and enter bills is input the client name in the window when you enter the check or the
bill it's that simple and you will usually put the client name in the bottom right of the window it's
so so simple for example let's imagine on March 20 Ross wrote check number 1 for $200 to the intern
research team for work done on the Alen RB client case let's take a look at how we would record this
check from the icon bar click check make sure that you bring the day forward to March 20 of 2017 now
the company whom we paid was the intern research team and the money amount was 200 ok now because
this is a handwritten check we remove the print later and we leave the check number one which is
what QuickBooks suggests now obviously this check is for the expense of research but this is not
general research expense this recent research expense is specific to this particular client
Allen RV now in this video we are not going to Bill Allen yet we're just going to record what
we paid and make sure we know it's for Allen so in this video we will remove the check mark where
it says billable and in a future video I will talk all about billable expenses when we click
Save and close at the bottom of the window we can open up the trial balance and see that research
expense showed up as a general expense for $200 however the most important report in this video
is the profit and loss by client when we open it up we can see that even though we earned a
thousand dollars from Allen RB and income we had to pay $200 for the Allen RV case in order
to earn that income because we needed to do the research so right now our profit from the Allen
RB case has been reduced down to $800 let's take a look at a second example let's imagine on March 21
Ross wrote check number 2 for $400 to the intern research team for work done on the candy Charles
case same company same service but meant for a different client basically it's the same thing
click to open the check window QuickBooks remembers we left off a check number to the
date of the check is the 21st the company we wrote the check to was in turn research team the money
amount of the check was $400 QuickBooks happens to remember the particular expense that's associated
with that vendor and it's very convenient to write the check only extra step is coming to the
bottom right and clicking directly under the word customer job just to bring the arrow then click on
the arrow and choose which particular customer or client in this case in this case the client
is candy Charles and again there will be a later video teaching about how to build the client so
for now we'll remove the checkmark when we click Save and close we can notice on the trial balance
that research expense in general went up and we could always double click this total and look at
every check for research expense and we can even see which client it's for however the best report
in this case is the profit and loss by client and now you can see even though you earned $5,200 from
candy you needed to spend $400 in research to be able to earn that 5,200 so right now your profit
from candy has been reduced down to four thousand eight hundred now this third example illustrates
a couple of important points imagine March 22 we received bill number 8 472 from Verizon for seven
hundred dollars for international phone calls for the Allan RB client case well let's take a look at
what happens when we record this from the icon bar click bill ok the company that sent us the
bill was Verizon the date of the bill was March 22nd the reference number on the bill was eight
four seven two and the amount of the bill was seven hundred dollars now you can click on the
bottom left to choose the specific expense in this case the expense was international phone
call expense but this particular bill was for the Allen RV client case and again for now let's
just remove the billable and I will explain about billable expenses in a later video now
we click save and close and we open the trial balance you see the Accounts Payable feature has
been activated because we now owe to a vendor 700 dollars and in the profit and loss by client you
can see that your profit for Allen has decreased so far you have only earned a thousand from Allen
or at least only recorded a thousand dollars worth of invoices for Allen however you have
two expenses that relate to the Allen RB case the international phone calls as well as the
research expense so so far you only build Allen for a thousand so QuickBooks only acknowledges a
thousand dollars in income for that client but you have a total of nine hundred dollars of expenses
for that same client and so far with all the work you did you only made a hundred dollars that's why
you need both the trial balance for the general totals as well as the profit and loss by job