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arkvalleyinfo
October 15, 2018
Question

Billable and Reimbursable Expenses

  • October 15, 2018
  • 7 replies
  • 0 views
I work for a company where we have 1099 contractors who do consulting work.  These contractors send my company a monthly invoice and detailed spreadsheet showing any expenses incurred (travel, meals, etc.) for their contracting jobs.  My work then has to pay the contractor and then also bill the firm who hired that contractor.  My question is-  how do I mark an expense as billable and reimbursable if the original expense is not incurred by my company?  I need to take the specific expenses and somehow track them as reimbursable to the contractor as well as billable to the client/firm.

    7 replies

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    arkvalleyinfoAuthor
    October 15, 2018
    As a follow-up, how do I record expenses that I reimburse to employees?  The employees incurred the expenses last year (prior tax year), but submitted for reimbursement this year.  I want to make sure the expense shows as being incurred last year (obviously I use accrual-based accounting).
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      arkvalleyinfoAuthor
      October 15, 2018
      Where is the Company Settings?
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      arkvalleyinfoAuthor
      October 15, 2018
      Where do you set up a reimbursable account in Company Settings
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      username217984
      October 15, 2018
      Did anyone get an answer for this?
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      arkvalleyinfoAuthor
      October 15, 2018
      Hi jessicaferro021!

      You're on the right track - with using billable expense.  Your company essentially is paying for those expenses - as you're righting the check to pay the 1099 contractors back.  That's you're expense - logged in on the vendor bill.

      Then you can mark them billable to your firm to get reimbursed.  There is an area in your Company Settings that you can designate what account you'd like billable/reimbursed expenses to hit.

      Then when it's billed to the firms - you'll record receiving that money back.

      That way you'll be able to track everything.

      Hope this helps!
      A
      arkvalleyinfoAuthor
      October 15, 2018
      Thank you!  I did figure this out and I ended up adding an income account named "Reimburse" and adding sub-accounts to this such as "Hotel, Meals, etc."   Then I added new expense accounts titled "Hotels, Meals, etc." and linked them to the reimburse income accounts.  From there, I did exactly what you stated above.  Thank you!!
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      tory-brogan
      April 11, 2021

      Interesting and looks easy.  Newbie question - how did you link income and expense accounts?  I do this manually and I need to just remember.  Is there a way that you do this more automated?

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      LoveNumbers
      January 6, 2023

      If you want to track that what you bill is what you receive you have to use ITEMS..Since is a pass-through with no income to your company, what you do is after you pay the contractor and check the BILLABLE box when is time to bill your vendor (the company that reimburse you) click on a tab called REPORTS and ITEM LISTING link..Click on all of them related to your contractor...Now you have linked your contractor expenses to the reimbursement you are looking for...That is a great accounting and QB is great!

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      Teri11_2
      May 27, 2023

      Must disagree. I know this is what QB does but disagree with that function since it makes cost disappear.

       

      On your P&L (Income statement), you should see 3 things: 

       

      Revenue/income

      minus

      Cost/expense

      equals

      Profit or loss.

       

      If you start burying cost in revenue accounts, which next to zero you cannot see true total revenue or cost.

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      cmoulton
      May 27, 2023

      Ive been on Chat for 3 hours... I went through minimum 3 different people ( I can tell by their spelling) and nobody can tell me how to reimburse my employee and mark that as billable without having a duplicate expense in my P&L. 

       

      Adrian_A
      Adrian_A
      May 27, 2023

      It isn't the kind of experience we want you to come across with our chat support, cmoulton.

       

      I'm here to share more information about creating a reimbursement.

       

      With QuickBooks, the process of creating a reimbursement is through payroll. If you want to make it billable, you could have created an expense or check transaction. Then, tick the BILLABLE field. 

       

      In your case, it seems you already added a reimbursement. If you still create a check or expense transaction, it will cause a duplicate.

       

      Here's an article for the details of reimbursing an employee: Reimburse an Employee in QuickBooks Online.

       

      I've also added these articles that outline how QuickBooks process your taxes:

       

       

      You can always post in the forum if there's anything that I can help you with.

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