Hi, this may be a basic question but thank you in advance.
I am a freelancer and my client asked me to add my reimbursements to my service invoice as a separate line stating that it’s an reimbursement.
I’ve heard before that service and reimbursement shouldn’t be on the same check as it may cause tax issues.
Will it be ok as long as it’s clearly stated that a portion of my check is an reimbursement, or should they be on separate checks?
In other words, what is the most appropriate response to my client who requested to have my service and reimbursement on one invoice?
Refunds are not included in tax calculations so there’s no need to record it in QuickBooks Self-employed. Though, if the payment was recorded, you can delete or exclude a transaction. Here’s how:
Please drop by again if you require further assistance.
Hi there, Donuts123.
I'd like to add to this discussion and ensure you're able to record these transactions properly in QBSE.
Yes, it won't be a problem to have both of your service and reimbursement on one invoice. Since invoices recorded in QBSE are mainly for recording purposes.
However, to add them to the calculation of your Estimated taxes, you'll need to enter them manually as separate transactions. Here's how you can do it:
If you're unsure as to what category you should select, then you can reach out to our AnswerXchange Community forum. They can help you select the category that will best match your transactions.
That should get you going in the right direction. Please let me know if there's anything else I can do for you. Wishing you all the best!