I've purchased some products a the request of my client, but I ended up paying for it on my personal credit card. I've entered this item as an expense that I will claim back from the company but this expense needs to be passed on to my client, and I am not sure how to record it. I'm not sure if these are billable expenses or reimbursable expenses.
I've seen some guides on adding Billable expenses in the account settings but I don't have those options available in QB Essentials.
On the invoice to my client I've got to have a "Product/Service" on the expense line item which requires an Income account.
I want to make sure I'm passing on this expense to my client, not paying tax on it as business income. Does anyone have experience with recording these kinds of transactions?
Good day, lilbizmarketing.
The Billable Expense feature is currently available in the QBO Plus and Advanced versions. You might want to upgrade to these versions so you can bill the expense to your client.
Let me share these articles for more details:
I would also recommend reaching out to your accountant to check if the transactions should be recorded as a billable or a reimbursable expense.
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