When customers pay for
your services, they’re really buying your knowledge of how to get the job done
the best and fastest possible way. That’s why an inexperienced carpenter
charges $15 an hour, whereas a master woodworker who hammers faster and
straighter than a nail gun charges $80 an hour. When it comes right down to it,
time is money, so you want to keep track of both with equal accuracy.
Product-based companies track time, too. For example, companies that want to
increase productivity often start by tracking the time that employees work and
what they work on.
There are hordes of
off-the-shelf and homegrown time-tracking programs out there, but if your
time-tracking needs are fairly simple, you can record time directly in QuickBooks
or use its companion program, QuickBooks Pro Timer, which you can provide to
each person whose work hours you want to track. The advantage of tracking time
in QuickBooks is that the hours you record are ready to attach to an invoice
(see page 249) or use in payroll (see online Appendix D). In this chapter,
you’ll learn how to record time in QuickBooks itself. Appendix F (available
from this book’s Missing CD page at www.missingmanuals.com/cds) explains the
ins and outs of the standalone Timer program.
Mileage is another
commodity that many companies track—or should. Whether your business hinges on
driving or merely requires the occasional jaunt, the IRS lets you deduct
vehicle mileage, as long as you can document the miles you deduct. And you
might charge customers for the miles driven in conjunction with the work you do
for them. As you’ll learn in this chapter, QuickBooks can help you track the
mileage of company vehicles; you can then use that info for tax deductions or
to charge customers.
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