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malonerepair
April 1, 2024
Question

How to add a billable hourly rate to a quickbooks invoice

  • April 1, 2024
  • 1 reply
  • 0 views

I am a self-employed auto mechanic with no employees. I use QuickBooks Advanced to track everything I do. My question is that I charge a flat rate of 50 dollars per hour for labor. How do I set this up in QuickBooks? Do I add it in QuickBooks as a service? If so, Do I assign it to the Billable Expense Income Account? My last question is that I charge all clients a shop fee of 20 dollars to help cover items like paper towels, gloves, disposal of fluids, etc. How do I set this up in QuickBooks so I can bill the clients properly?

 

Thank you.

1 reply

S
ShangY
April 1, 2024

I appreciate you for dropping by here in the Community, @malonerepair. 
 

Yes, you can create a service item to track billable hourly rate and the shop fee. For guidance, you can follow the instructions in this article: Add product and service items to QuickBooks Online.

 

To add billable hourly rate to an invoice, here's how:

 

  1. Click + New. 
  2. Select Time entry. 
  3. In the Add time panel, select the contractor/vendor's name. 
  4. Enter all the necessary time entries 
  5. Click Save. 
     

Afterwards, add the billable time to your invoice. 

 

Alternatively, you can attach the service item (shop fee) to your customer’s sales receipt or invoice. 

 

Here’s how:  

 

  1. Click + New. 
  2. Select Invoice or Sale’s receipt.
  3. Under Product/Service drop down, click + Add New. 
  4. Then, select Service.
  5. Fill in the Name field and enter the price rate. 
  6. Click Save and close. 

 

Since we’re unable to suggest what specific income account we can use, I recommend reaching out to your accountant.  

 

In addition, you can explore this article to learn more how to record payments and connect it to the invoice ensure your accounts are balanced: Record invoice payments in QuickBooks Online.

 

If you still have questions or concerns in mind about setting up billable hours to your invoice or any other QBO features or processes, feel free to leave a comment below. Our team is ready to back you up. Have a good one.

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