What is Billable Expense in QuickBooks
In QuickBooks, a billable expense is an expense that you incur on behalf of a customer or client and can be billed to that customer or client for reimbursement. Examples of billable expenses include travel expenses, mileage, supplies, or other expenses that you incur while working on a project for a customer.
When you mark an expense as billable in QuickBooks, you can assign it to a specific customer or project, and then include it on an invoice for that customer. This allows you to track and bill your expenses accurately and efficiently, while also ensuring that you are reimbursed for any expenses that you incur while working on behalf of your customers.
QuickBooks makes it easy to track and manage billable expenses, allowing you to categorize expenses by customer, project, or type of expense, and generate invoices that include all billable expenses for a particular customer or project. This can save you time and streamline your billing process, while also helping you to accurately track your expenses and ensure that you are getting paid for all of the work that you do.
Enter Billable Expense in QuickBooks
To enter a billable expense in QuickBooks, you can follow these steps:
- Go to the Plus icon (+) located in the top center of the screen and select “Expense” from the drop-down menu.
- Enter the vendor or supplier name in the “Payee” field and select the appropriate account from the “Account” field.
- Enter the amount of the expense in the “Amount” field.
- Check the “Billable” checkbox to mark the expense as billable to a customer.
- In the “Customer” field, select the customer who will be billed for the expense.
- If applicable, enter a description for the expense in the “Description” field.
- Save the expense by clicking on “Save and Close” or “Save and New”.
Once the billable expense has been entered, it can be included on an invoice for the customer. To do this, create a new invoice for the customer, and the billable expense will appear in the “Add to Invoice” section.
The Advantages and Disadvantages of Billable Expense in QuickBooks
Advantages of Billable Expenses in QuickBooks:
- Accurate tracking of expenses: QuickBooks makes it easy to track and categorize expenses, allowing you to accurately bill customers for expenses that are related to a specific project or job.
- Increased revenue: By billing customers for expenses that you incur on their behalf, you can increase your revenue and ensure that you are reimbursed for any expenses that you incur while working on a project.
- Streamlined billing process: With billable expenses in QuickBooks, you can create invoices that include all billable expenses for a particular customer or project, saving time and streamlining your billing process.
- Improved cash flow: Billing customers for expenses in a timely manner can improve your cash flow and help you to manage your finances more effectively.
Disadvantages of Billable Expenses in QuickBooks:
- Time-consuming: Entering and tracking billable expenses in QuickBooks can be time-consuming and may require additional administrative work.
- Possible disputes: Customers may dispute some expenses, which can create conflict and require additional time and resources to resolve.
- Complexity: Managing billable expenses in QuickBooks can be complex, particularly if you have multiple projects or customers, which can make it difficult to accurately track and bill expenses.
- Additional Costs: QuickBooks charges an additional fee for billable expenses functionality which may add to the overall cost of using the software.
Overall, the advantages of using billable expenses in QuickBooks often outweigh the disadvantages, particularly for businesses that frequently incur expenses on behalf of customers. However, it is important to carefully consider the potential drawbacks and determine whether billable expenses are the right solution for your business. Learn More