What to do with Time Billing Data Once Entered?
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Hi all --
I've run into a major problem in learning QB2009. I am a photographer and occasionally hire assistants to help me out with photo sessions. In many cases the assistant bills hourly, but for some services I do not change the customer's price for the service just because the assistant stays longer. In other words, I charge the customer for "Photo Session" and would like to track the assistant's time for that same session without it being billed to the customer.
Most of my assistants are sole proprietors and do not provide me with a "bill" of any kind, other than a timesheet showing the time they worked on a particular job. I would like to enter this into the Time Billing pane in QB2009 Mac and use that to create a "bill" once a month for each 1099 vendor so I can issue them a check based on the hours they worked. Is there a way to do this? I feel like I am missing something obvious but have searched and not found an answer yet. Thanks in advance for any help you can provide.
Answer
Scooby:
I've run into this situation with freelance print & web designers. My solution is to enter their hours as a bill that is tracked to them, as a "vendor", and to the specific job. That allows me to pay them and track their 1099's, even if they aren't submitting an invoice (as they really should be doing). Then, when I go to generate my invoice to the client, their "bill" shows up in my TIme/Costs window. I select it and it gets added to the invoice. If they are billing you for more than you are charging the client, you may need to set up a "courtesy discount" account. (Never a bad idea to show the client that you gave them a break, right?) I have run into problems when I have tried to bill my clients for MORE than the freelancer is billing me. (I suppose it should be handled as a mark-up percentage, but I can't figure out how to do that without having to provide that amount to the client. I guess that's honesty at its best policy, though.)
I don't think you can do it all in one swoop. The assistants' bills are the assistants' bills. You need to track them as bills and pay them regardless of the amount you bill your client. If you want to enter their time on an hourly basis, you need to set them up as employees (with hourly rates and whatnot), which could complicate your books and also mean additional tax liabilities. (Don't forget, if you're paying them over $600/year, you need to issue them a 1099 and report their payments.)
Disclosure: I an new to this as well. I am not an accountant. I have been running a small design studio for over ten years and I should probably seek the help, once again, of a professional on the matter. I advise you to do the same. I just wanted you to know that you are not alone.
Isn't business fun?
Answer
Debi:
That is exactly what I was trying to say. Thank you for getting to the point that I obscured in long-winded babble. ;) Do you want to grab a cup of coffee on Tuesday? (Completely kidding.)
Comment
mibadesign, you didn't obscure anything; you informed, and not with "long-winded babble" either! In fact, you were so helpful that there wasn't really anything left to say, which I took as an opportunity to be prissy and opinionated.
Coffee where? ;-)
Long-time QuickBooks for Mac user
Former business owner
NOTE: This is a user-to-user forum and not official Technical Support.
Comment
My two cents (or less): Your "assistants" who are sole proprietors should be invoicing you, not turning in time cards. IMO, turning in time cards is what employees do, not self-employed folks.
Always opinionated...
Debi Calvet
AdvantGroup LLC
www.advantgroup.biz
Long-time QuickBooks for Mac user
Former business owner
NOTE: This is a user-to-user forum and not official Technical Support.