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Level 1

Business expenses vs. billing expences

So when I go to the store to buy $100 of materials for a job, that amount comes out of my account and shows up as an expense. Now, I go bill out the customer for a job that cost me $200 in labor and that original $100 for materials. When that money comes back into my account, $300 is showing up as income. How do I differentiate/separate those amounts on my quick books account to show that I only made $200 (taxable amount) and not $300 which I already paid tax on that $100 in materials in the first place? Thanks in advance. 

1 Comment
Joesem M
QuickBooks Team

Business expenses vs. billing expences

A pleasant day to you, @RCSPROPERTYMAINTENANCE.


When you record a business expense, QuickBooks tries to assign it to the correct category. You can review the transactions created, so you can separate those amounts in QuickBooks. Just click on the drop-down arrow on the Date option on the Transactions page and enter the date of the transaction.  Don't forget to hit on the Apply button after entering the date range.

Also, I'd recommend consulting an accountant for the assistance advice needed in case you need to choose another category. Your accountant can provide more expert advice in dealing with this concern. If you haven't yet, I've got you here a link to use so you can find a bookkeeper near you: Business is better with a ProAdvisor.


This article will serve as your reference in categorizing transactions to review from your bank or credit card: Categorize and edit transactions in QuickBooks Self-Employed.


Additionally, you can also visit the following articles to learn how you can help you record your self-employed income and expenses transactions, and prepare your Schedule C in QBSE:


I'll be around to help if you have further question about this or with QBSE. Have a lovely day!

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