does your law firm bill your clients for the time of the associate attorneys
well then you need to know how to create billable time activities
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if you bill clients for time that your workers or service vendors work on the
job you will mark the time activity as billable when you record it you must enter the rate that
you are billing the client for each billable hour at the moment you enter the time activity
you will see the billable time on the unbilled time report until it is placed on an invoice
and billed to the client but first you need to activate billable time in the account and
settings window so from the top right we click the cog wheel we go over to account and settings
and the bottom category on the left is advanced we click and scroll down to the section of time
tracking now this says make single time activity billable to customer if we click anywhere in the
section we are able to edit the section and it's the bottom button that we're focusing on right now
so just click so it moves to the right acknowledging that we can now bill uh
clients for time then we click save then in the bottom right click done how do we know we change
the settings well if we click new and go to single time activity now you see the billable box is here
for you to indicate if you are billing this time activity to a client for example let's imagine
on june 25th lana the lawyer did 12 hours of work that was billable to alan rb the client
lana's hourly rate is a hundred fifty dollars per hour after we record this
we will see the results in the unbilled time report so we go to the top left and we click new
and we go single time activity and we know it's lana the lawyer and the date is june 25th so we go
i'm using 2021 for our little story and the client was alan arby let's double check that yes and
it was a hundred and fifty dollars an hour notice by default automatically
the billable box is checked which is what we want and we want to put
150 dollars an hour now when we click save and close oh we want to put the number of hours here
so we put 12 12 hours of work on that one day billed at 150 dollars an hour to the client
and when we click save save and close we can then click reports and go down to
unbilled time double click and you see the only unbilled time we have was that single
time activity that we just made for june 25th for lana the lawyer we can double click and
go back to the time activity and edit anything you need or read the description more clearly
and now let's bill allen for the hours that lana worked let's imagine on june 28th we build alan
for the 12 hours that lana worked on june 25th so we click in the top left new invoice
we advance the date to june of 2021 it's june 28 and as soon as we choose the customer allen
you will notice in the right panel the times activity that we just recorded
for lana shows up here in the total amount and we click add
the hours rate and quantity show up on the invoice and all we have to do is click save and close and
now the unbilled time report has nothing because we have just billed allen for the time slip
that we just created and if you want to see the result you can click reports
profit and loss by client and you can see in the column of allen we now have billable hours in
the income section for 1 800 increasing our gross profit and our net income with alan the client now
you probably noticed when we checked the profit and loss that income from billable hours by lana
was recorded into the default income account called billable hours hours is an item that
quickbooks online put on the list of products and services it is connected to the income account
called billable hours it's the same result as putting the hours item directly on an invoice
hours is the default item for billable time slips and timesheets and the following video
shows how you can make your own items and use those for billable hours
in the meantime let's do example two let's imagine on june 30th andy the attorney
worked eight hours for the client betty boop we bill him at a 135 dollars an hour
so let's go ahead and do that we click new single time activity
the date was june 30th the associate was andy the attorney and it's work for betty boop and this
time it's billable so make sure the green check mark is there billable at 135 dollars an hour
and we will enter the time directly and we said it was eight hours of work
we click save and close and now we can click reports and go down to um unbilled time
that the only unbilled time we have now is the one single time activity from andy the attorney
for the client betty boop now let's see what happens
on july 2nd we build betty for the hours that andy worked on june 30th so let's take a look
we click new invoice and this time we're up to july 2nd
and at the moment that we choose betty boop you see on the right the billable time that we can
just click add and those hours automatically get added to the invoice on july 2nd of 2021
now we could add other things the way we learned in prior videos but at the moment
we click save and close you notice it disappears from the unbilled time report and it is no longer
unbilled where will the results show if you click reports and you click profit and loss
by client you can see that billable hours billable hours for betty boop in the column of betty boop
that andy just did the work for on july 2nd now increases that income to 1080 dollars