How to record a billable expense

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What’s a billable expense?

A billable expense is a work expense you can bill a customer for.

For example, if your customer reimburses travel expenses, and you take a taxi to meet them, you can record your cab fare as a billable expense and then add it to their next invoice.

To record a billable expense, it’s as easy as setting it, expensing it, and invoicing it.

Step 1: Set it

QuickBooks billable expense settings

  • Click the Gear icon > Company Settings > Expenses > Bills and expenses.2
  • Turn on 01 Track expenses and items by customer and 02 Make expenses and items billable.3

Step 2: Expense it

QuickBooks billable expense

  • Click Create (+) > Expense.2
  • Enter the expense, 03 mark it billable, and 04 specify a customer.
  • (Optional) At the bottom of the expense form, attach the actual taxi receipt!

Step 3: Invoice it

QuickBooks billable expense invoice

  • Click Create (+) > Invoice.2
  • When you enter a customer’s name, 05 related billable items appear on the right.
  • Click 06 Add to move a billable expense to the invoice.

Your invoice will then look like this:

QuickBooks billable expense invoice

  • Click the 07 link icon to view more about a billable item or remove it from the invoice.
  • If you click the 08 trash icon to delete a line, you can choose to unlink its related billable item as well.

Notes

  1. The billable expense feature is available in QuickBooks Plus only.
  2. Don’t know where Create (+) or the gear is? Here’s the basics on getting around.
  3. If you see the old Preferences screen instead of the Settings screen, click Vendors & Purchases in the left column, and then select the “Use billable expenses and products/services” checkbox.
  4. Want to try billable expenses? Enter a sample one at the QuickBooks test drive.
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    • Paige