A QuickBooks tip for creating a job cost report that displays hours worked.
Creating a job cost report displaying the hours worked by an employee, on a specific job or on all jobs, for a specific week or at the end of a job can provide a contractor with vital job costing information so you can see if you correctly bid the number of man hours required for a job.
We use QuickBooks and it will provide you with this information through the Time by Job Summary or Time by Job Detail Reports, this article will teach you how to modify the reports for your business needs, however, in order for these reports to be useful, you must enter employee hours using the QuickBooks Enter Time function.
The Time by Job Summary Report
This initial report will provide you with summarized information about the total number of hours worked for each QuickBooks Item/Cost Code/or section totaled by job.
The Time by Job Detail Report
This initial report will provide you with detailed information about the total number of hours worked by each employee under each QuickBooks Item/Cost Code/or section; subtotaled by each cost code and totaled by job.
While this can provide you with useful information, perhaps you would like to filter the report to include the total time spent on a single, completed job, by employee and cost code.
These reports will help you to see how accurately you bid your man hours on a job, however, they will NOT include payroll dollars. You could export the modified time by job detail report to Excel, add a column for Rate (the rate being the hourly wage PLUS the hourly labor burden), add some simple formulas to the spreadsheet and also get the total cost.
NOTE: Always check the Time by Job Detail Report for a No Item Assigned section, hours that appear in this section have been assigned to a job, but not assigned to a QuickBooks item or cost code and this will make your job costing reports inaccurate.
We highly recommend that you run the Time by Job Detail Report each week after entering employee hours, but BEFORE you issue payroll to make sure that everything has been correctly costed to your jobs.
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