Skip to main content
March 22, 2024
Question

I’m a mobile hairdresser. When my clients pay me for my service does that go under billable income and then deposit ?

  • March 22, 2024
  • 1 reply
  • 0 views
I’m not sure what income to put it under ?

1 reply

March 22, 2024

Hi there, strawberry. I'm here to shed some light on your concern.

 

Billable expense income refers to the revenue a business generates by making purchases on behalf of a client. This income is generated when a company incurs costs related to a customer's project or service and then charges them for these expenses in addition to the fees for the services provided.

 

If you want to record a real-time payment from a service that you've made for them, consider creating a sales receipt. From there on, you can make a new service line item or add one. Then post it in the Undeposited funds account and make a bank deposit to move the funds to their appropriate bank account. 

 

Moreover, if you want to record the payments as deposits, I suggest using the bank deposit and selecting the correct income account. I can guide you on creating one.

 

  1. Go to + New, then select Bank deposit.
  2. On the Account dropdown, choose the account where you would like to deposit the money.
  3. Select the payments included in this deposit section, then check all the payments you want to add.
  4. Go to the Add funds to this deposit dropdown, then add the necessary details needed.
  5. Click Save and close.

 

Refer to this article for more information about recording transactions to match your real-time bank deposits: Record and make bank deposits in QuickBooks Online.

 

Furthermore, I recommend talking to an accountant for further guidance on what income to put it under.

 

Moreover, you can visit this article for guidance on creating and recording billable expenses in QBO: Enter billable expenses in QuickBooks Online.

 

Feel free to get back to this post if you have further concerns about where your payment services go in QBO. I'll be happy to lend you a hand.