Expenses paid on behalf of client, Small material (typefaces) bought to do the project

Hi ssc2020 Are you using the self employed product or one of our small business products?

Hi John,

I am on the QuickBooks Essentials plan? So I could get multi-currency too. Not sure where to find the answer to your question otherwise. Sorry, I am new to this.

Best,

SSC

Hi ssc2020 We appreciate that you didn't want to upgrade however if you were using the Plus product there is a function called billable expenses. This function enables you to create expenses and make them billable so you can then attach them to the customers invoice. As you have the Essentials product this function isn't available and you'd have to use a workaround. You would have to create product/service and allocate the expense account in the income account field, you will then be able to add the product/service to the customers invoice.

In relation to your second question, any items that you purchase which you then sell on to customers would be classed as Cost of sales.

Hi John,

Super thank you for the reply!

1) I am attaching how I have done this to date. Do you mean that?
So anything I prepay for the client, hardproofs from the printer, or any material samples, etc. would work like this?

2) I am not really reselling the typefaces. I.e. you design a logo or poster, so I buy the typeface to do the work. If I was another business this would be a drill, or tool that I will use for possibly other projects as well. I have classified this now as Material – Cost of Sale. Is that correct? 

Hello Ssc2020, Thanks for your reply, Yes anything you prepay that you want to pass the cost on to would be done this way. For your second point if that is a material you use in order to do the work then you could class it as that, We would always advise confirming with your accountant if they are happy with that.

Hi Emma,

Thanks for the pointer. Sorry I am still not quite sure this is right, attaching the overview from my statement. The expenses paid on behalf of the client show up below (EXPENSES CLIENT), is this correct as I will invoice them back for it?