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Billable expenses should not be considered revenue

Forum|Forum|4 years ago
December 10, 2021
2 replies
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I have a consulting business and each month my consultants send me invoices and expense reports that I then invoice my clients for services provided and expenses incurred. I'm struggling with creating expense reports for my clients. I've tried a couple different ways (Vendor expense as billlable. Also Vendor Bill as billable) but the invoices always show up in my sales numbers. Expenses aren't considered revenue so I'm confused as to why they're showing up in my sales numbers.

How can I send expenses to clients without it being considered revenue?

QuickBooks Online

Best answer by MJoy_D

Thank you for your response. Are you saying that quickbooks does not handle the processing of pass through expenses? I have an accountant and have been running our consulting business for years. I wanted a system for all my processing instead of the manual processes I have in place today. The more I hear from all the responses it seems that your system cannot really handle what a large consulting company needs to do. I am very surprised at this and disappointed. Please confirm that you cannot process pass through expenses.

Thank you for getting back to us, @TerriSR.

The function to track specific pass-through expenses is currently unavailable. That would be a great addition to the current features that we have, so I’ll take note of it.

In the meantime, I suggest reaching out to an accountant on how to handle these expenses.

I also encourage you to leave feedback from within the product. Here are the steps:

Go to the Gear icon and select Feedback.
Provide your product suggestion.
Click on Next to submit feedback.

You can check out this article for more information about providing feedback to make the program better: How do I submit feedback?.

Here's an article that can help you in recording, editing, and deleting expenses: Enter and manage expenses in QuickBooks Online.

Let me know if you need further help with managing your transactions. I'm always glad to help in any way I can. Have a wonderful day!

KimMcCPA

Gear > Account and settings > Expenses

You may already see Make expenses and items billable toggled to On

Click on that line to expand that section

More settings should appear... and one of them is:

"Track billable expenses and items as income"

Remove the check in the box and Save.

T

TerriSRAuthor

We have not checked the track expenses as income.

Adrian_A

Hi there, TerriSR.

Once you've checked the Track billable expenses and items as income option, the system will automatically give you an option to make the invoice billable. Afterward, you can run the Income by Customer Summary report to show the billable expense without reflecting it as income.

Let me guide you with these steps:

Click the Reports tab.
Enter and select Income by Customer Summary.
Filter the Report period.
You can Customize it to add or delete some data on the report.
Click Run report.

I've also added this article for more information about Billable Expense: Enter billable expenses.

I'm just around if there's anything that I can help with. Keep safe!

B

barb15

This is an old thread but you should use the COGS account to bill pass-through items. Hope you were able to get your issue resolved before now.

L

LukeNurn

Barb, are you meaning the "payment account"? Or are you recommending choosing "Cost of Goods Sold" Category when editing an expense (doesn't look like an account)? If that's the case, why is this better than what may be a more accurate category such as "Travel: Airfare".

I have this exact same issue with my consulting company that involves a lot of travel and would like to save time/work up front.

I appreciate it!

C

Chris_Accounting_2023

@MJoy_D can you respond to the last question? I'd like to know as well.

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