Tracking Employee Time in QuickBooks

Tracking employee time in QuickBooks is essential for accurately calculating payroll and managing labor costs. QuickBooks offers tools and features to help you track employee hours and time worked. Here’s how to do it in both QuickBooks Online and QuickBooks Desktop:

QuickBooks Online:

1. Set Up Time Tracking:
   • In QuickBooks Online, go to the “Gear” icon (Settings) in the upper right corner.
   • Under “Your Company,” select “Account and Settings.”
   • In the left sidebar, click on “Advanced.”
   • Under the “Time tracking” section, click the “Edit” button to enable time tracking.
   • Choose whether you want to track time for employees or vendors or both.
2. Add Employees and Vendors:
   • Go to the “Workers” or “Expenses” tab in QuickBooks Online.
   • Add employees and vendors who need to track their time.
3. Enter Time Data:
   • Employees or vendors can log their time worked by accessing QuickBooks Online or by using a mobile app.
   • They can select the customer, project, service item, and task for which they worked.
   • Enter the date and the hours worked.
4. Review and Approve Time Entries:
   • As the employer or manager, you can review and approve time entries to ensure accuracy.
   • Once approved, the time entries can be used for payroll processing and client billing.

QuickBooks Desktop:

1. Set Up Time Tracking:
   • In QuickBooks Desktop, go to the “Edit” menu and select “Preferences.”
   • In the Preferences window, click on “Time & Expenses” on the left.
   • Go to the “Company Preferences” tab.
   • Check the box for “Time tracking” to enable it.
   • Configure other preferences, such as whether to prompt employees for time data when they clock in or out.
2. Add Employees:
   • In QuickBooks Desktop, go to the “Employees” menu.
   • Select “Employee Center.”
   • Add employees who need to track their time.
3. Enter Time Data:
   • Employees can log their time worked using QuickBooks Desktop’s time tracking feature.
   • They can select the customer, project, service item, and task for which they worked.
   • Enter the date and the hours worked.
4. Review and Approve Time Entries:
   • As the employer or manager, you can review and approve time entries to ensure accuracy.
   • Once approved, the time entries can be used for payroll processing and client billing.
5. Use Time Data for Payroll:
   • When processing payroll, you can pull in the approved time entries to calculate employee pay based on hours worked.

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Both QuickBooks Online and QuickBooks Desktop offer the ability to generate reports based on time data, making it easier to track labor costs, bill clients for time spent on projects, and calculate accurate payroll. Be sure to configure time tracking settings and train your employees or team members on how to use the time tracking feature effectively.