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Chris400
December 12, 2022
Question

GST on pass through expenses?

  • December 12, 2022
  • 1 reply
  • 0 views

I have a client whose work is being done by a subcontractor.  I invoice the client based on the subcontractors time and I pay the subcontractor based on their invoices.

 

The subcontractor has sent me some travel expenses that were authorized by the client.  How do I invoice the client for these?  A new "Other Charge" type called expenses?  What account would I use (my income account related to Consulting Income)?  And would I charge GST on the expense? (I am not marking them up but just passing them through)

 

Thanks

1 reply

A
Amanda-B
December 12, 2022

Hey there Chris400,

 

Thanks for reaching out to us here. Making sure you're recording your transactions properly is an essential step for maintaining clean books. I would be happy to point you in the right direction.

 

To ensure accuracy in your books, I recommend reaching out to an accounting professional for expert advice on creating these types of transactions. They'll be able to guide you in choosing the correct transaction type as well as which accounts to affect so that your accounts can end up with the right balance. To find an accountant near you, click on this link. 

 

If you have any other questions, feel free to reach out here.

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