The Intuit Quickbooks Desktop accounting software is used by many small businesses to track expenses, cash flow, invoice clients, process accounts receivables, process payroll and balance bank as well as credit card statements. One of Quickbook’s weaknesses was tracking and invoicing employee time for professional services such as lawyers, contractors and IT professionals who charge for their services by the hour. External or manual systems are often used to keep track of time billable to a customer. This data is then entered manually into Quickbooks when an invoice is created.
In December of 2017, Intuit announced its intent to acquire TSheets, a web-based Employee Time Tracking solution that works seamlessly with Quickbooks to track their time, streamline invoicing of clients and measure profitability by project. Tsheets takes advantage of the Quickbooks Web Connector, a Desktop Add-on that enables integration between web-based applications and the Quickbooks financial software for a small business.
Let’s work through an example where the Meadowlands Regional Chamber will be charged for services associated with building content for its Meadowlands USA magazine by imaginary Acme Media Company.
An administrative account is established with Tsheets which is a cloud-based service accessible from the Internet. Administrative users can connect to Quickbooks via the web connector utility invoked by Tsheets. Tsheets then retrieves customer account and employee information (e.g. Meadowlands Regional Chamber) as well as pushing employee time card information from Tsheets back to Quickbooks.
Once customer account, service item (e.g. professional consulting, repair) and employee information is populated in Tsheets. Tsheet users can then clock into an account (or project), select a service item, determine whether the activity is billable to a customer and then provide a short description of the activity. T
There are several ways to view timesheet entries within Tsheets, including a manual one-time entry, weekly entry and timelists view where all time for a user is displayed for a specified time interval.
All time needs to be approved by an administrator before being submitted back into the Quickbooks Time Management database. Tsheets transfers the approved time entries via the Web Connector back to the Quickbooks Time Management Database based on specified update intervals or manually.
Once Tsheets and Quickbooks have synchronized their datasets, Tsheet timesheet entries will appear in the Quickbooks Timesheet account. To pull these timesheet entries into an invoice, select the customer account associated with these entries when creating an invoice. Quickbooks will present a list of billable time and costs for the account. Select those entries to be used for the invoice in question. Quickbooks will automatically populate the invoice with the billable items.
Tsheets is continually adding new capabilities that allows managers to track paid time off and time clock kiosk functionality, which authorizes any computer or tablet as a kiosk to allow multiple employees to quickly clock in or out from one device.
There are also Payroll and Project Reports available that simplify resource planning and payroll processing. Professionals such as accountants, lawyers and contractors, who previously tracked time in external systems and imported summaries into Quickbooks for invoicing, should take a close look at Tsheets for simplifying their internal bookkeeping and accounting.
By Peter Krautle, Managing Partner, Louisa Voice