Question

Billable Expenses In Simple Start

Forum|Forum|4 years ago
April 2, 2022
1 reply
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Hello. If my limited accounting knowledge is correct, Billable Expenses can only be categorized as "Income and Expense" or "Invoicing or Payments" within QuickBooks. Both of those categories are fully included in Quickbooks Online Simple Start. So, how can that feature not be included in Simple Start? Someone please help me understand.

QuickBooks Online

R

ReymondO

Good day, @RyanC3PO.

Let me share with you some insights about the Chart of Accounts in QuickBooks Online.

Before we proceed, can you verify with me if you're referring to the Billable Expense Income account in QuickBooks?

If so, this account is one of the default accounts in the program. This is categorized as Income in Account Type and Sales of Product Income in Detail Type.

If you're trying to create a new account for Billable Expenses, then you can freely select its account type and detail type. To ensure everything is properly set up, reach out to your accountant for further guidance.

In case you're referring to categorizing Billable Expenses as income and expense, then this option isn't available. You can't use both of these categories as an account type.

You can use an Income account for transactions and payments you get from your normal day-to-day business, such as sales revenue or income for services rendered. On the other hand, use the Expenses account to track transactions of money you spend on expenses related to normal business operations. Examples are advertising and promotion, office supplies, and rent.

For more details, you can refer to this article: What the chart of accounts is and why it’s important to set up correctly in QuickBooks Online.

To find out how to use account types and detail types in your chart of accounts, you can check it out here: Learn about account types and detail types in QBO.

If you're referring to something else, feel free to add them on this thread. I'll be more than happy to help you out, @RyanC3PO. Have a good one.

R

RyanC3POAuthor

Thanks for the reply. Not sure I follow your response but those examples don’t seem to explain what I’m referring to. I’m asking about a company cost that will be billed to customer on a invoice. For example, I purchase a thingamabob to complete a task for a customer. When entering my expense for that item, I mark that expense as billable. Then when creating an invoice for that work, I see the billable expenses I have marked for that job and include that in the new invoice. So, I’m referring to action of marking the expense billable and then being able to see that expense when doing an invoice. Hope that clarifies my question. Thanks.

DivinaMercy_N

Thanks for the clarifications, @RyanC3PO.

Let me go over and discuss further details about the billable expense feature in QuickBooks Online (QBO).

The billable expense feature is only available in QBO Plus and Advanced versions. To make the expense billable to your customers, you'll want to consider upgrading your subscription.

If you don't want to, you can manually create the transactions (expense and invoice) and use the Memo (Expense form) and Message on invoice (Invoice form) fields to indicate that this is an expense you've incurred on your customers behalf. Please see the snips below for your reference:

Also, when creating a QBO company, the lists of accounts in your Chart of Accounts (COA) depends on your company type. To learn more about this, feel free to visit this link: Learn about the chart of accounts in QuickBooks Online.

QBO also offers a ton of great customer reports that you can access to track your income. Here's how you can open one:

In your QBO account, go to the Reports menu.
Next, scroll down to the Who owes you section.
From there, select whichever report you'd like to run.

Please know you can always find me here if you have any other QuickBooks concerns. Thanks for dropping by. I look forward to hearing from you again. Take care.

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