do you bill your clients for the time that the workers spend on the job well then you need to
be able to record billable time activities if you have any questions about this topic
you can leave them in the comment section below and I'll do my best to help you and of course
if you feel the video helped you I hope you will click like and don't forget to subscribe to get
updates on new videos that come out all the time if you build clients for time that your
workers or service vendors work on a 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 bill of
unbilled time report until it is placed on an invoice and billed to the client for example
let's imagine on May 15 lonna the lawyer did five billable hours for the South Woods Road
job under Kirschbaum the rate that we bill her for is a hundred and forty-five dollars per hour and
after we record this you will see the results on the unbilled time report so again how many
145 and five billable hours ok so we click new single time activity the date was May 15th the
name was lana the lawyer the customer or job that it relates to would be the Kirschbaum south woods
road job and we leave the check mark billable at a hundred and forty-five dollars per hour
good now we'll only put in the number five if she works from home we don't need the start time the
ending time and the amount of break time so that would be the easier way to put it in now when
we click Save and close we can check the report called unbuild time and you can see that nothing
happened okay click on build time and you can see right now the only time that we recorded that's
billable that we have not yet billed are these five hours from Lana the lawyer we should take
a quick look at the other report the regular one time activities by employee to see that the only
one that says yes in the billable column is this May 15th one hundred and forty-five dollars per
hour five dollars for Lana and now continuing with the same example let's imagine on May 17th
we billed Kirschbaum for another twenty percent of the South Woods Road job and added to that invoice
the billable hours by Lana from May fifteenth so we come here and we click new invoice and I
believe the date was May seventeenth yes it was May 17 and your billing not just Kirschbaum but
specifically for the South Woods Road job now both the estimate and the billable time will
show up here in the right panel first we add the estimate and QuickBooks remembers that for this
job we usually build 20% at a time and we click copy to invoice just like we did before and 20
percent of each line of the original estimate gets billed on this invoice just like we learn and the
last step is to click ad for the billable time and now you can see that another 725 dollars was
added to the invoice for Lana's hours remember you will have to type up a description on the
invoice if you feel your client needs to see that because there's nothing that you can put on the
time slip or timesheet that will carry over to this invoice when you put the billable hours
on the invoice so you'll just have to have some documentation if you want to add a description
there now when we click Save and close we can check reports and if you look at unbilled time
there is nothing because we now billed for the time that was billable so this report should be
empty but the most important report in this case is the profit and loss by customer when we open
it and we go across to the Kirschbaum southwards row job you can see South Woods Road has another
income in the income section of the profit and loss by customer another 725 dollars in income
and the income account that this gets recorded into by default is this account the account
that QuickBooks created billable hours and this increases our income and therefore our bottom
line for the South Woods Road Kirschbaum job now after checking the profit and loss by job you
probably noticed that the income from the billable hours by lana was recorded into the default income
account called billable hours you can change the default income account for income from billable
hours unfortunately you cannot have more than one account for any billable hour income that
you have and that's because hours use a default item on the products and service list and this
default item is called hours you cannot use any other item but this default item when you put
billable hours on an invoice let's take a look at that item if you come to the top right and
click the cogwheel you can come over to products and services and you'll notice quickbooks online
already included this item this is the special magic item that you are required to use whenever
you put billable hours from a time activity on to a client's invoice income from Bob the Builder can
be a different income account that we use so let's make another income account to put the
billable hours income into and then we'll connect the hours item to that account you see this way
when we build for Bob the Builder the income will go into that account instead of the billable hours
income account so basically all we have to do is use this special item that QuickBooks includes
by default but if we want the income for this to go into a different account not the default
account we click Edit and notice for hours the default item that QuickBooks set up for us the
income account is the default income account billable hours but we can click this pulldown
scroll all the way up and click add new and this income account can be you know service
income and the name of it can be what thing their income from Bill the Builder or we can just put
now we have created another income account in the chart of accounts and after we save it we
can make sure that that is the income account that the billable hours gets recorded in to save
and close now let's try an example with that May 20 the Builder worked for hours on the Kirschbaum
South Woods Road job we bill him at $65 per hour and ok so let's just do that let's on May 20th
four hours 65 an hour bill bill the Builder so we click new single time activity May 20th it
was Bill the Builder bill the independent builder anyway and the customer was the South Woods Road
Kirschbaum job its billable to Kirschbaum at the rate of $65 an hour and we only have to put 4 here
and again in a case with bill you might want to put the start time the finish time and the break
just so that bill can see that you recorded it properly but since we know the summary we're
just going to put the number here and again when we click Save and close we can check the
report that shows unbilled time and right now the only unbuild time is from Bill the Builder
but on May 20th excuse me on May 22nd couple of days later we're going to build Kirschbaum for
the rest of the South Woods Road job and add bill's hours so we click new invoice and we
know that this is May 20th or actually it's may 22nd whatever and it's for the South Woods Road
job under Kirschbaum notice the estimate and the billable time show up in the right panel just like
we learned before we click Add to the estimate and copy to the invoice because there's only
16% of the job left because we've done so many invoices now we will add bill the Builder and his
hours to this invoice just like we did with Lana a moment ago $260 for bill save and close and now
let's click reports profit and loss by customer notice we have a new income account called bill
the Builder income and when I scroll across the $725 excuse me the $260 specifically for Bill
the Builder went into the bill the Builder income and not the billable hours income you