The way you set up your Item list depends on the services you provide and
the information you want to show customers on an invoice. You should create a
QuickBooks service item for each type of work you do for a customer, whether a
partner, associate, subcontractor, or hourly employee does it. You can then use
these items when filling in time entries and creating invoices in QuickBooks.
You'll also be able to see reports that show your revenue for each accounting
service (or item) you perform.
Accountants typically work from a list of job/project codes when they bill
their time. You can model the organization of your QuickBooks Item list on the
list of job codes your firm already uses. For example, suppose your firm uses a
list that organizes services according to several main headings:
Within each of these headings are specific services your firm provides to
customers. For example, services underneath Audit Svcs could be: certified
annual audit of books of accounts, certified audit of pension plan,
compensation insurance audit, and county tax audit. (Of course, the way you
organize your services may differ from these examples.)
If you want your invoices to show each main heading, as well as the time
spent on individual services underneath that heading, you can use a combination
of QuickBooks items and subitems—use items for each main heading and
subitems for tasks underneath that heading.
Create a service item for each main service. Do not enter a Rate for the
Create the necessary subitems for a main service:
Click the Type drop-down list and choose Service.
In the Name/Number field, enter the item's name.
Click the Subitem of checkbox and click the main service item
from the drop-down list.
Enter a description that you want to appear on your invoices.
Enter a rate for the new subitem.
Click OK. Repeat Step 2 for each subitem needed.
Set up service items to track