QuickBooks Online Certification Practice Test 2025 – Complete Exam Prep

Tracking billable hours in QuickBooks Online can be effectively accomplished through the "Time Tracking" feature. This tool allows users to log the time they spend on various projects or tasks, and it can be directly linked to customer invoices. When you utilize this feature, you can specify which hours are billable, ensuring that these hours are properly accounted for in financial records and invoiced to clients without duplication of efforts.

Using the Time Tracking feature also provides accuracy and efficiency, as it integrates seamlessly with the invoicing system, making it easy to apply billed hours directly on invoices. The ability to report on billable vs. non-billable hours further supports management and decision-making processes for businesses that charge clients for time-based services.

The other choices do not offer the same level of integration, accuracy, or practicality in managing billable hours effectively. Creating a separate invoice for each hour would be cumbersome and could lead to confusion, while recording hours in a physical logbook would require additional manual entry into QuickBooks, increasing the potential for errors. Generating a random billing cycle does not align with the systematic tracking of time spent on projects and could disrupt proper billing practices.