One of the great strengths of QuickBooks is it’s ability to include payroll, payroll, burden, employee benefits, and even workers compensation in costs associated with products and services.
The first step is to set up products and services you want to track profitability as two sided, i.e., having both a cost and revenue component. This will allow you to automatically allocate labor cost, not only to customers and jobs but to individual products and services.
Whether you enter payroll hours though timesheets or directly to the payroll checks you can assign hours at a customer/job and an item level. For hourly employees QuickBooks will allocate payroll burden on a pro-rata basis based on hours worked. This will work even for salaried employees. Just make sure hours total out to 40 per week by assigning hours not assigned to a particular customer/job to a “G&A” customer. QuickBooks bases the allocation by dividing line item hours by the total of the line item hours so you want to include all hours worked.
Robert Guild is Advanced Certified QuickBooks ProAdvisor in Austin, TX who conducts CPE courses for CPAs and individual training and group classes to QuickBooks users. His company at www.QBCoach.biz, maintains a sixteen-station QuickBooks lab, providing hands-on training. You can contact him directly at rguild@QBCoach.biz or follow him on twitter at QBPro