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matthewcz
February 13, 2023
Question

Reimbursable expenses

  • February 13, 2023
  • 1 reply
  • 0 views

Hello.

 

I sometimes have reimbursable expenses on invoices and I don't know how to categorize and manage them so that they do not look like income. For example, I will purchase a gym membership for a client, add it to the their monthly invoice along with my billable time. The same invoice contains billable time, sometimes, reimbursable expenses.

 

How should I categorize those reimbursable expenses?

 

Thanks so much for your help.

1 reply

LeithG
LeithG
February 13, 2023

Hi matthewcz

 

At the end of the day, whether you record it as revenue (less the expense of the purchase) or a pass-thru (reimbursable) expense, it won't really impact your taxes owing, but it will impact your 'revenue/expenses' in terms of business activity.

 

That said, if you create additional item(s) from Invoicing > Products and Services, and create the 'gym membership' tying the item to a balance sheet account 'expenses to be reimbursed' that would do what you're after.

 

Hope this helps!

Leith.

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