Hi there, @MizMary.
You are on the right track on entering your donors as vendors and your clients as customers. This way, you can easily track transactions from them.
Also, you can enter a billable expense and apply it to an invoice to show both expenses and income on the Profit and Loss report. Let me guide you how.
First off, let's turn on the billable expense feature in your QuickBooks Online. Here's how:
- Click the Gear icon, then select Account and Settings.
- Go to the Expenses menu and click the edit icon in the Bills and expenses section.
- Put a checkmark in the Make expenses and items billable checkbox.
- Click Save, then Done.
Once done, you can now enter a billable expense. Please follow the steps below:
- Click the + New button, then select Expense.
- Choose the payee from the drop-down.
- In the Item details section, select the service from the drop-down.
- Enter the necessary information and put a checkmark in the Billable column checkbox.
- In the Customer/Project column, select the customer you want to pay the bill.
- Click Save and close once done.
Once you're ready to add it to an invoice, feel free to follow the steps below:
- Click the + New button, then select Invoice.
- Choose the customer from the drop-down.
- In the Add to Invoice window, click Add on the billable expense.
- Click Save and close.
Here's an article you can read for more details: Enter billable expenses.
After following the steps above, you can now run the Profit and Loss Detail report to show both expenses and income. For more guidance, feel free to check out this article: Run reports.
As always, you can visit our QuickBooks Community help website if you need tips and related articles in the future.
Please let me know if you need further clarification about this, or if there's anything else I can do for you. I'll be standing by for your response. Have a great day.
