Adjusting accounting to include direct labour in COGS for a construction company
So far in QuickBooks Desktop Premier Contractor Edition we've been recording all payroll as expenses. After some research and testing I think we should be recording direct labour (on jobsites) as COGS and indirect labour (office/admin etc) as an expense.
I've created a Direct Labour COGS account and have adjusted our direct labour service items to reflect that account as the cost account, however this change isn't reflected in historical transactions. I'd like it to be reflected historically so that all our reporting for this year is consistent.