Skip to main content
D
deltabird
July 1, 2021
Question

QuickBooks Desktop Projects Hourly Cost Rates

  • July 1, 2021
  • 1 reply
  • 0 views

Is there a way to enter hourly cost rates (burden rates) for projects (for employees and contractors) in QuickBooks Desktop.  I know that in Quickbooks Online, you can enter these hourly cost rates and tack the cost of emplolyee/contract time in Projects (without posting entries as payroll expense).  I have used these rates to see the profitability of projects.  I don't see this option in Desktop (2021).  Can these hourly cost rates be reported in project reporting in QB Desktop without having to enter a payroll expense?

    1 reply

    R
    RCV
    July 1, 2021

    Thanks for checking in with us, deltabird.

     

    In QuickBooks Desktop, we can enter hourly cost rates (burden rates) for projects (for employees and contractors) as job costs. Job costing means tracking the expenses for a job and comparing those expenses to your revenue. You can see how much money you spend and make for each job with QuickBooks Desktop's job costing tools. Let's make sure we set up each item with enough information. The level of detail in your Item List will determine the preciseness of your job cost reports. See the Learn how to add, edit and delete items in QuickBooks Desktop article for more details. 

     

    First, set up a Customer:Job for each of your job. This enables you to keep track of your income and expenses on a job-by-job basis and can simplify your bookkeeping if you add another job for that customer in the future. For the next steps, just check out the Tracking job costs in the QuickBooks Desktop article. To track your sales and expenses using predefined customer, job, and sales reports, you can check out the Customize customer, job, and sales reports in the QuickBooks Desktop article. 

     

    Visit our Help Articles page for more insights about managing your business in your software.

     

    Feel free to update us after performing the solutions, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. You have a good one. 

    D
    deltabirdAuthor
    July 1, 2021

    Hi RCV- Thank you for the reply. I have a follow-up question.  I created a project in QuickBooks Desktop. I also created an Item for the service performed. However, when you create an item, you have to assign an account to it. This is not what I am referring to because I want to capture the cost of time incurred whether or not the cost has been posted to an account.

     

    In QuickBooks Online, you can create cost rates for employees and track their costs without posting the cost to an account.

     

    Is there a function in QuickBooks Desktop that allows you to track the cost (hourly cost rates) of work performed on a project without having to post to an expense account?

      Tori B
      Tori B
      July 1, 2021

      Hey there, @deltabird. 

       

      Thanks for following up with us. I hope you're enjoying the day so far.

       

      In QuickBooks Desktop, you do have the option to set custom rates or prices for employees. Such as a Billing rate level. Billing rate level lets you set custom service item rates for different employees. You can use them if you find that one standard rate for a given service is not always sufficient. 

       

      Let me walk you through the steps to set up the billing rate level for employees.

       

      To create:

      1. From the Lists menu, select Billing Rate Level List.
      2. Click on the Billing Rate Level drop-down then choose New.
      3. Enter the billing rate level name then pick the billing rate type.

      For additional details about how to use our billing rate level feature, check out Set up custom rates or prices for employees, vendors, or customers. 

       

      Please know that this feature is only available in our Contractor, Professional Services, and Accountant editions of QuickBooks Desktop. If you don't use one of these editions, I'm happy to submit a feedback request to our Product Development Team. Our product developers review each request and consider them for future updates. 

       

      Please let me know if you have further questions or concerns. Take care and have a wonderful weekend! 

       

      Terms & ConditionsAccessibility statement