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ssc2020
December 22, 2020
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Expenses paid on behalf of client, Small material (typefaces) bought to do the project

  • December 22, 2020
  • 1 reply
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Hi everyone,
I have two questions:

 

1)

I run a small design studio and frequently pay expenses (printing proofs) etc. on behalf of my client. How do I need to put them into the system to be correct for the UK? I'd like to avoid having to upgrade yet again my plan for the few instances it happens a year.

 

2)
I frequently buy typefaces and small assets to produce the project, do I categorise these as goods for sale? In HMRC's categories I would have put them under (Costs of goods bought for resale or Goods used)


Would be very grateful for pointers for both!

Best answer by Ryan_M

Hi Emma,

Thanks for the pointer. Sorry I am still not quite sure this is right, attaching the overview from my statement. The expenses paid on behalf of the client show up below (EXPENSES CLIENT), is this correct as I will invoice them back for it?

 


Hi @ssc2020,

 

Thank you for your prompt reply. 

 

For this specific query, it's best to consult your accountant or bookkeeper. They can check if your QuickBooks Online (QBO) company and ensure it's correct. 

 

You stated above that you're new to QBO, so I suggest you view this page: Get started with QuickBooks Online. It's a list of articles that can help you get up to speed with your new QBO company.

 

Have other questions about QBO, then go ahead and place a comment below. I'll be sure to get back to you. 

1 reply

P
payment after leaving
December 22, 2020

Hi ssc2020 Are you using the self employed product or one of our small business products?

S
ssc2020Author
December 22, 2020

Hi John,

I am on the QuickBooks Essentials plan? So I could get multi-currency too. Not sure where to find the answer to your question otherwise. Sorry, I am new to this.

 

Best,

SSC

 

 

P
payment after leaving
December 22, 2020

Hi ssc2020 We appreciate that you didn't want to upgrade however if you were using the Plus product there is a function called billable expenses. This function enables you to create expenses and make them billable so you can then attach them to the customers invoice. As you have the Essentials product this function isn't available and you'd have to use a workaround. You would have to create product/service and allocate the expense account in the income account field, you will then be able to add the product/service to the customers invoice.

In relation to your second question, any items that you purchase which you then sell on to customers would be classed as Cost of sales.

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