Billable expenses are expenses that a business incurs on behalf of its customers, expecting to be reimbursed later. These expenses might include materials, external services, or travel costs. You can track these expenses and bill the appropriate customer for them.
To enable billable expenses, go to the Settings tab and click Billable Expenses.
Check the Enabled checkbox to activate this feature.
After enabling billable expenses, navigate to the Customers tab and click the Edit Columns button.
Enable the Uninvoiced column to monitor billable expenses that have not yet been invoiced to customers.
When you activate billable expenses, a new Billable expenses account is automatically added to your chart of accounts.
This account becomes available in various transactions including payments, purchase invoices, and expense claims.
To record a billable expense, select the Billable expenses account in your transaction, then choose the Customer to allocate the expense to.
Billable expenses is an asset account on the balance sheet. Recording new billable expenses does not affect your profit and loss statement.
This ensures that expenses to be reimbursed later do not inflate your income and expenses until they are actually invoiced to the customer.