Entering Time and Expense Codes

Time and expense codes are used to record work in process in the form of time or expense entries. They are also used to control individual rates for each staff member. For example, the bookkeeping work code could have a rate of $50 per hour for Gary Adams and $100 per hour for Dwayne Wilson. Each time Gary enters time to the bookkeeping work code this rate is charged accordingly. Work in process or time journal reports break down the time entries by date, staff member, and work code. The work code represents the hourly profit the firm can recoup for work performed by individual staff members. It is different from the hourly wage paid to staff members or the cost of the firm of paying the staff member.

Expense codes are useful for recording photocopies, courier charges, parking costs, and any other incidentals and are generally the same for all members of the firm.

Work codes for time or expenses can be billable or non-billable. Billable indicates that work performed using a billable work code can be charged to the client in the form of an invoice. Non-billable work codes cannot be billed to clients but are a cost to the firm and should be recorded accordingly. New business developments, meetings with prospective clients, vacation or sick days are all examples of non-billable work codes.

You cannot enter time or expense transactions unless you have completed the list of applicable work codes.

For reporting purposes, it is useful to group work codes. Work code classifications are used to group or classify common work codes for presentation on invoices or work in process reports. An easy way to view all non-chargeable time is to create a work code classification entitled, Non-billable time transactions.

What do you want to do?

• Import Overview
• Create the Work Code Classification List
• Create the list of work codes

Related Topics

• Entering Billing Codes
• Using abbreviations versus full descriptions for work and billing codes