Setup

One of my clients required a QuickBooks Desktop file setup that included job costing and payroll functions.

I set up an entire service and non-inventory item list to be used to track specific job costs that could be applied to all vendor payments and employee paychecks. These items would also have to meet the specific invoicing needs of each customer for the type of work that was to be accomplished (inspections, service, contract work) as well as specifically what was to be accomplished (or purchased or even invoiced) within these types of work.

The payroll system was tailored specifically to meet the needs for the various hourly/salary, direct labor, managerial and office employees. The system required differing payroll schedules replete with 401k, child support deductions, and tracking for the occasional employee advances. This was a timesheet-based system, and required employees to submit timesheets that covered a payroll period and included the specific days and hours worked, the job worked on, and the specific tasks that had been accomplished.

This system was NOT a billable system, however, meaning that all job materials and labor costs were not directly billed to the clients. Instead, a system of comparing estimates vs. actual costs and processing job profitability reports on a continuous basis ensured that there were no cost overruns and no underbidding. Using this system, the client was able to accomplish a healthy profit margin (within typical parameters) for each job.

I maintained all the bank accounts manually in order to make sure that all check payments and deposits were applied properly to all vendor bills and customer invoices. The credit card system was set to automatically download and we set up auto-naming rules for ease of processing. The auto-download feature was a good fit for this client because their charges were typical, and allowed for these auto-naming rules to assist the bookkeeper in easily processing the card statements. The credit card account was reconciled once a month, but the charges were maintained on a continuous basis. Because the business was growing very quickly, the main checking account had to be reconciled twice a week so that cash flows for bill payments could be maintained properly.

This client’s business has been very successful and has evolved into two split full-time businesses.

Want to know more? Still have questions? Email help@accurabooks.com. We are happy to help!

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