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Yes, QBO can create an invoice for hours worked and recorded in a weekly timesheet.
Transitioning from QB Desktop to QBO was a huge effort. I spent at least 40 hours cleaning-up the data (unbilled charges) and about 10 hours on the support line and eventually had to figure it out in my own. In a nutshell, I had to: 1) activate all of the inactive accounts in the chart of accounts; 2) create invoices for all of the unbilled charges (which were previously billed), 3) void the new invoices; 4) re-inactivate the accounts in the chart of accounts; 5) re-inactivate customers, vendors, and employees. After you get on the backside of that; there will be many more quirks and gotchas.
I have regretted the transition to QBO but can't turn back now. The next move will be to a different system. Having used QB Desktop for 20 years, I never had one issue or one complaint. Since the transition, I have had one hurdle after another. Although support tries to be helpful, many are not sufficiently trained to solve problems so it turns into a group research project.
Two areas to watch out for -- 1) Syncing bank account transactions in unreliable, at least with TD Bank; 2) Using service items in QB Time and syncing data back to QBO.