Skip to main content
U
userlh_gardenservice
July 5, 2024
Question

Buying supplies for customer expense account to use?

  • July 5, 2024
  • 1 reply
  • 0 views

Hi there, quick one as have just started to buy supplies for customers for their gardens ie compost or bark chippings, plants, all for that specific customer, within the invoice I add a line detailing this. In the background of products and services, I have it detailed as a service (rather than non cost item), but then the income account throws me, I'm thinking one of the income ones, (not strictly an expense as I've purchased it yes, no add on charges, but then the customer has paid me), hence thinking income, not cost of sales, as I've not made it, billable expense income?, sure there is a simple answer, beginning to wish I'd not started this, trying to help, leads to complexity!! Help and thanks for reading......

1 reply

M
Maybelle_S
July 5, 2024

I recognize the challenges you're facing with categorizing expenses and income correctly in QuickBooks Self-Employed (QBSE), userlh. It's crucial to accurately reflect these numbers in your records.

 

If you've paid the expenses on behalf of your customer, you can bill them for those expenses using the Billable Expense feature. However, it's only available in QuickBooks Online (QBO).

 

Since you're using QBSE, I recommend consulting your accountant to help you properly record these expenses. They can help you choose the correct account and bill your customers accordingly.

 

I've added this link about categorising transactions in QuickBooks: Categorise transactions. It also organises your income and expenses so you know what areas of your self-employed business have the biggest impact.

 

Furthermore, visit this article to learn the basics of QBSE: QuickBooks Self-Employed Overview.

 

Please don't hesitate to get back on this thread if you have other concerns about categorising expense transactions. I'm always glad to help in any way I can. 

Terms & ConditionsAccessibility statement