What is a Billable Expense
Billable expenses are the reimbursement from your customers via billing. You incur those expenses on behalf of your customers for some work, services, or supplies. You can later mark these bills, cheques, and expenses as billable and can add to invoices later. Doing this task could be troublesome and requires a lot of effort if the expenses are recurring. Keeping a stack of bills could be problematic for a business or a person. Whether you are an individual or an organization, paying on behalf of your clients or bosses or organizations is a common practice. And keeping a record of all this could be a tiring job. There are chances that you might skip certain bills or payments. Doing all this manually is next to impossible. QuickBooks Billable Expense manager makes it easy for you. Via this feature of QuickBooks, you can easily track your billable expenses and encash them later.
About QuickBooks Billable Expenses
In QuickBooks Billable Expenses, you can mark all your expenses whether entered as a bill, check, or expense, as billable. Check off the billable box and enter the name of the customer for whom the payment was made. Save the transaction and expenses get recorded as usual. A non-posted transaction is also get recorded which can be referred to as a billable expense.
See the following picture for reference
How to Create Billable Expenses in QuickBooks
To create Billable Expenses in QuickBooks, follow these simple steps-
- Go to the Gear icon at the upper right of your QuickBooks Online screen. Then click on Accounts and Settings. Please ensure to turn on the “track expenses and items by customer” option. Also, check the tab for “markup with a default rate of x percentage”. Leave the default percentage as zero.
- Stay in the invoicing window, when you try to create an invoice for XYZ, a reminder will remind you to add unbilled billable expenses. The reminder could be in the form of a pop-up or the expenses will just appear to the right side in a ‘drawer’ depending upon the QuickBooks version you are using. QuickBooks keep track of expenses you marked billable which is yet to bill out to clients no matter irrespective of the version you are using.
Also Read: How to Enter Expenses in QuickBooks
Adding billable expenses to Invoice
Whatever description you have given to the expense, it will show in your invoice once you add it to the invoice. All you need to do is add the billable expenses to your invoice. Your markups will be shown separately. You will the markups separately only before you send it to your customer or get it printed not after that. You can also select these items and post them to a different income account called Billable Expense income on the Profit & Loss. It makes your reporting more informative and optimized
How to create Recurring Expenses
In the case of the business or individual who sells the same product at the same price to their clients or in the case of IT professionals, the process becomes faster. You need to set up a product or service for the expense. After that, whenever you purchase the same item, just type the name of it, all related information will be auto typed. You can also save the purchase as a recurring or a memorized transaction. It gets automatically posted every time you need to enter it. It possesses all the required information including the amount and account of the expense, transaction amount, percentage marked-up, and the client for whom it is due.
How to turn off Billable Expense Setting
You can always turn off the billable setting, but existing billable expenses will still be applied to an invoice. Here is how you can turn off the billable expense in QuickBooks-
- Go to the Gear icon.
- Jump to Accounts & Settings.
- Click Expenses.
- Jump on to the pencil icon under the Bills & Expenses section.
- Uncheck the option ‘Track billable expenses and items as income.
- Click Save and the settings are now changed
QuickBooks Billable Expense is a great feature of QuickBooks if you find it difficult to manage your billable expenses. Its automated features make it easier to manage expenses. And the reminder keeps you reminding if you miss an entry. And if you do not use the QuickBooks Billable Expense feature, you can choose to disable it anytime you want.
What if I forget to mark a payment as billable?
QuickBooks Billable Expense will ask you to enter the details of the payment every time you make an entry, so you will get to know whether it is billable or not.
What if I do not like Billable Expense working?
You can always choose to skip the feature and can disable it.
Enabling and Disabling both happens from the Gear icon?
Yes, you can enable QuickBooks Billable Expense from the Gear icon and disable the same from the same. But the set of steps are different.
What if I have accidentally marked a non-billable amount as billable?
QuickBooks always ask you to cross-check, do a cross-check whether a payment is billable or not.
Is there any way I can re-enable the Billable Expense?
Yes, you can do the same from the Gear icon.