Travel expenses do need to be booked separately for tax purposes. Next, you would create an invoice, adding the billable expense to it.įinally, when you receive payment from your customer for the expense, you record the customer's payment. This is the name of the customer that you will receive the money for the expense from. When you check off the billable expense box, you MUST enter the customer's name. Typically inventory is something you charge your customers for that you would always have a certain quantity of on hand (screws, nails, buttons, clothing, cans, bags). This does NOT include inventory, since inventory is accounted for in a completely different way, and can be recorded and tracked inside or outside Quickbooks (if the business doesn't have Quickbooks Plus or Advanced (enterprise) online, it must be tracked outside Quickbooks, usually on a spreadsheet or using other apps). In Quickbooks Online, for every expense you enter, there is a checkbox that you can check off if this is an expense that you will bill to your customer, or receive payment from your customer for, as part of their service deal with you. The parts in this case are a billable expense that they charge to their customers, if it is a specialized part that they do not normally keep in their inventory. They charge not only for labor, but for parts. To give a more specific example, supposing an auto mechanic repairs your car. (I hope this is not too confusing, I do have a degree in accounting.) You *could* call it prepaid expenses, but the term "prepaid" in accounting usually refers to an expense (like legal or insurance) that is paid for your OWN business in advance in increments, added to an intangible asset, then deducted from the account when used. Please call it "Billable Expenses" instead. If you use Quickbooks payroll, and add the reimbursable expense category to types of pay for your employees, Quickbooks will get confused since it creates a payroll Reimbursable Expense account. Therefore, to avoid confusion between these two types of expenses, I do NOT recommend that you call that expense account "Reimbursable Expenses". A "billable expense" usually describes an expense that your company paid on behalf of your customer (for job supplies and materials, for instance) that you charge the customer for. Technically, a "reimbursable expense" usually describes an expense (like cleaning or office supplies) that an employee bought on behalf of an employer. The terminology should help you a bit with the answer. Have a wonderful day.īy "reimbursable" I presume you mean billable, as in you bill these expenses back to your customers, and your customers pay these bills to reimburse you for expenses you paid out on your customers behalf. Please leave a comment below if you have other concerns. Please refer to this article for more details: Community help articles. Meanwhile, I'll be adding this Community resource if you've got other QuickBooks concerns such as setting up payments, managing your income and expenses, running reports, etc. I'll be adding this to guide you with our support hours and types. Choose Start a chat or Get a callback to connect with us.Click Contact Us to connect with a live support agent.Enter a brief description of your concern, and then select Let's talk.Go to the Help (?) menu at the top right.Sign in to your QuickBooks Online company.This is to make sure it will show the accurate information on your report. They have the tool to open your account and help you check your data. In this case, I suggest contacting our support team. I can guide you on how to fix this, much as I want to look into further, however, I'm unable to open your account here for security purposes.
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