Learn how to create invoices from project expenses in QuickBooks Online Plus and Advanced.
Once you set up Projects, you can invoice customers for specific project-related expenses (including timesheets). You can use these steps whether you’re charging customers for time and materials, or a fixed fee.
Step 1: Decide how you’ll charge for projects
If you charge for time and materials, you usually invoice customers for specific project expenses and hours worked. You’ll need to make your project expenses and timesheets billable so you can add them to invoices.
If you charge for a fixed fee, you typically don't invoice for specific project expenses. Instead, you send customers an estimate for the entire project. You can convert the estimate into an invoice when the work begins.
However, there may be times when you need to charge for specific project expenses. A common example is when customers ask for extra work outside the original project plan.
Step 2: Turn on billable expenses
If you haven’t already, turn on billable expenses.
Select the Gear icon, then select Accounts and Settings.
Select the Expenses tab.
Scroll to the Bills and Expenses section and select it to expand it.
Check the Make expenses and items billable box.
Select Save and close your settings.
You can now make any expense or timesheet in QuickBooks billable.