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uzairrock
Level 1

Record income from services

Hello Everyone!

 

Happy Holidays!

 

Hope ya'll are doing great. I need some assistance on how do I record transactions under my scenario. I have a digital marketing company providing services such as social media marketing, mail marketing, website design, etc.

 

I incur marketing expenses (google, facebook, etc) on behalf of my customer using my bank account which is also synced with QBO. At the end of the month, i sent my customer a sales invoice i.e. cost incurred+my margin. Customer then pays me through check, which I deposit to the same bank account.

 

Now when I go into Banking section in QBO to review all the transactions, how would I record:

 

- the payments i made throughout the month on behalf of the customer for the marketing services I provided and

- the payment received by the customer at the end of the month against the above transactions.

 

Any help would be greatly appreciated. 

3 Comments
JenoP
QuickBooks Team

Record income from services

You can use the Billable Expense feature in QBO to record the expenses you've incurred on behalf of the customer, uzairrock. 

 

I'd be glad to share the steps on how you can activate it and how to use it was well. Here's how: 

 

  1. Go to the Gear icon ⚙ and select Account and Settings.
  2. Proceed to the Expenses tab.
  3. Go to the Bills and expenses section, then click Edit ✎.
  4. Turn on the following:
    • Show Items table on expense and purchase forms
    • Track expenses and items by customer.
    • Make expenses and items billable.
  5. (Optional) Set up the following details:
    • Markup rate
    • Billable expense tracking
  6. Select a Bill payment terms.
  7. Select Save.

Once done, you can now record the payments made on behalf of your customers and mark them as billable. 

 

  1. Click the + New button.
  2. Select between Bill, Expense, or Check.
  3. Select the name of the vendor or payee.
  4. In the Category column, select the expense account for transaction.
  5. Enter the description and amount of the expense, then check the Billable checkbox.
  6. In the Customer column, select the customer you want to bill for this expense.
  7. (Optional) Enter or make sure the markup % is correct, then select the Tax checkbox or choose a tax agency if you want to charge tax.
  8. Select Save and close.

Then, you can create an invoice using the data from the billable expense and receive the payments as well. Here's how:

 

  1. Go back to the + New button and select Invoice.
  2. Select the name of the customer you created a billable expense for. This opens the Add to invoice window.
  3. Click Add on the billable expense you want to charge to your customer.
  4. Select Save and close.

After downloading these transactions from your bank, you can then follow the steps in this article on how you can match and assign categories to them: Categorize And Match Online Bank Transactions In QuickBooks Online

 

You can also add a reply or visit us again in the Community if you need more help. 

 

billbale.PNG billbale2.PNG

 

uzairrock
Level 1

Record income from services

Hi, 

 

Thanks for your reply, but when I click the gear icon and go into Account and Settings, under Expenses tab. 

 

When I go to the Bills and expenses section, then click Edit ✎, I only see Default bill payment terms option and nothing else. What could I be missing here?

 

p.s. I am using QBO Essentials.

Ryan_M
QuickBooks Team

Record income from services

Hi @uzairrock,

 

Thank you for your prompt reply, as well. I'll answer this query for you. 

 

The billable expense feature stated by my peer @JenoP above is exclusive to the QuickBooks Online (QBO) Plus and Advanced versions. You'll have to upgrade to at least the Plus version to use this feature.

 

If you wish to proceed, follow these steps:

 

  1. Go to the Gear icon.
  2. Select Account and Settings.
  3. Click the Billing & Subscription tab.
  4. Choose Upgrade your plan.
  5. Go for the Plus version, then tap Choose plan.
  6. Follow the on-screen tips to proceed.

So you'll have an overview of the different features available for each plan, see this page: QBO Plans and Pricing.

 

Please know that we always have your back here in the Community. Drop a comment if you need further assistance, and I'll get back to you. 

 

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