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Rafter23
December 5, 2024
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How do I track expenses before they've actually been paid?

  • December 5, 2024
  • 1 reply
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We are a service business. Currently, purchases are made with a debit card so the expense incurred comes through within a day or two to my QBO account and I categorize it as needed. From there I can directly put together my invoice for the customer and invoice them. We are considering transitioning to charging expenses to our vendors who typically offer 30 day payable accounts to alleviate the transaction fees from all the debit purchases. My question is how do I account for the expenses incurred, if we go this route, before they transactions are processed through with actual money moved? If paying those vendor accounts monthly, I 1) do not want to over-extend myself and 2) would like to have the ability to track each expense still to invoice my customers soon after the job is done, not waiting until I get the bill from the vendor. 

Additionally, my process for tracking what COG's or time spent on jobs that is yet to be billed out is to utilize the 'Unbilled Charges' report. It would be ideal if the expenses that are charged to the vendor account but not yet paid for are able to be marked as 'billable' and found within the report.

    Best answer by AnneMariee

    It's great to hear you're considering optimizing your expense tracking process, Rafter23. Let's manage your expenses together and keep accurate financial records to invoice your customers promptly.

     

    In QuickBooks Online, you can record an expense as a bill. Here's how to do this:

     

    1. Go to the +New button and then choose Bill.
    2. Select the appropriate vendor in the Vendor dropdown.
    3. Choose the payment terms for the bill in the Terms dropdown.
    4. Enter the necessary details like Bill and Due dates.
    5. Fill out the details in the Category details section. You may also add specific products and services.
    6. Enter the Amount and applicable tax.
    7. Check the Billable box and enter the customer's name.
    8. When finished, click Save and close.

     

     

    Furthermore, utilizing the Unbilled Charges report is a good way to get a summary of all billable expenses that haven't yet been invoiced to your customers, helping you keep track of what needs to be billed out.

     

    Once it's time to pay your vendor bills, you can follow the steps under the Record payments toward bills section of this article: Enter and manage bills and bill payments in QuickBooks Online.

     

    This process enables efficient tracking of expenses and invoicing your customers, even before you disburse payments to your vendors. This allows you to invoice customers once a job is complete before any money transfers occur.

     

    To further assist you in tracking expenses efficiently, here are some guides on generating and customizing reports in QuickBooks:

     

     

    Thanks for taking the initiative to enhance your expense tracking process, Rafter23. Remember, we're here to support you every step of the way. Whether you're entering expenses, managing bills, or utilizing insightful reports, QuickBooks has the tools to streamline your financial operations seamlessly, and we're here to help you achieve that.

    1 reply

    A
    AnneMarieeAnswer
    December 5, 2024

    It's great to hear you're considering optimizing your expense tracking process, Rafter23. Let's manage your expenses together and keep accurate financial records to invoice your customers promptly.

     

    In QuickBooks Online, you can record an expense as a bill. Here's how to do this:

     

    1. Go to the +New button and then choose Bill.
    2. Select the appropriate vendor in the Vendor dropdown.
    3. Choose the payment terms for the bill in the Terms dropdown.
    4. Enter the necessary details like Bill and Due dates.
    5. Fill out the details in the Category details section. You may also add specific products and services.
    6. Enter the Amount and applicable tax.
    7. Check the Billable box and enter the customer's name.
    8. When finished, click Save and close.

     

     

    Furthermore, utilizing the Unbilled Charges report is a good way to get a summary of all billable expenses that haven't yet been invoiced to your customers, helping you keep track of what needs to be billed out.

     

    Once it's time to pay your vendor bills, you can follow the steps under the Record payments toward bills section of this article: Enter and manage bills and bill payments in QuickBooks Online.

     

    This process enables efficient tracking of expenses and invoicing your customers, even before you disburse payments to your vendors. This allows you to invoice customers once a job is complete before any money transfers occur.

     

    To further assist you in tracking expenses efficiently, here are some guides on generating and customizing reports in QuickBooks:

     

     

    Thanks for taking the initiative to enhance your expense tracking process, Rafter23. Remember, we're here to support you every step of the way. Whether you're entering expenses, managing bills, or utilizing insightful reports, QuickBooks has the tools to streamline your financial operations seamlessly, and we're here to help you achieve that.

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