I have the same question and I didn't get comfortable with the answer in this thread. Let's not talk about meals, because it's not about the 50% issues. I travel to my client and I am 100% reimbursed for the airfare. I am overstating my income because I am not properly coding the expense or reimbursement. Will someone please clarify how both are to be coded? Thank you.
I need to match my reimbursable expenses to my AMEX card which I connected to quickbooks. I make all my purchases with that car, airfare, hotel, gas, etc. I charge mileage for driving. How do I code each CC purchase as a reimbursable expense? I use the AMEX for other purchases as well which gets paid differently.
Good Afternoon, @Headruch.
Thanks for joining in on this thread. The best way to code your credit card purchases as a reimbursable expense is by creating a bank rule. When you create a rule, it will automatically categorize the transactions for you. Here's how to create bank rules for downloaded transactions:
It's that easy. If you'd like a more detailed guide about bank rules, check out this link.
I'm only a post away if you have any other questions. Happy Friday!
Hi everyone I'm looking for a clear brain to answer this question....
Reim Exp purchased for a customer
I'm helping an older person to organize his estate by offering consulting services. My invoices include 1 line under services for consulting at X hours for my labor. However, I may have purchased a laptop for my customer and set it up ready for him to do business.
I purchased the laptop for 1000.00. In the past I've always use a current asset account called "Reim Exp pass thru" to tag the expense in when posting my cc register in qbooks. However, now i want to include it on a line item to my customer for 1000 with no markup but when i go to add it i cannot get to my current asset account to tag it as a pass thru.
I'M missing something somewhere in the exchange as what i've read shows listing the expense under reim income account and when doing the P&L it shows it as income and the expense still shows as an in expense so I do not want my reports to be wrong.....ugh.
I can guide you on how to fix this, @QMAN53.
As much as I want to look into further, however, I'm unable to open your account here for security purposes. In this case, I suggest contacting our support team. They have the tool to open your account and help you check your data. This is to make sure it will show the accurate information on your report.
I'll be adding this to guide you with our support hours and types.
Meanwhile, I'll be adding this Community resource if you've got other QuickBooks concerns such as setting up payments, managing your income and expenses, running reports, etc. Please refer to this article for more details: Community help articles.
Please leave a comment below if you have other concerns. I'll get back to you as soon as I can. Have a wonderful day.
By "reimbursable" I presume you mean billable, as in you bill these expenses back to your customers, and your customers pay these bills to reimburse you for expenses you paid out on your customers behalf.
The terminology should help you a bit with the answer. Technically, a "reimbursable expense" usually describes an expense (like cleaning or office supplies) that an employee bought on behalf of an employer. A "billable expense" usually describes an expense that your company paid on behalf of your customer (for job supplies and materials, for instance) that you charge the customer for.
Therefore, to avoid confusion between these two types of expenses, I do NOT recommend that you call that expense account "Reimbursable Expenses". If you use Quickbooks payroll, and add the reimbursable expense category to types of pay for your employees, Quickbooks will get confused since it creates a payroll Reimbursable Expense account. Please call it "Billable Expenses" instead.
You *could* call it prepaid expenses, but the term "prepaid" in accounting usually refers to an expense (like legal or insurance) that is paid for your OWN business in advance in increments, added to an intangible asset, then deducted from the account when used. (I hope this is not too confusing, I do have a degree in accounting.)
To give a more specific example, supposing an auto mechanic repairs your car. They charge not only for labor, but for parts. The parts in this case are a billable expense that they charge to their customers, if it is a specialized part that they do not normally keep in their inventory.
In Quickbooks Online, for every expense you enter, there is a checkbox that you can check off if this is an expense that you will bill to your customer, or receive payment from your customer for, as part of their service deal with you.
This does NOT include inventory, since inventory is accounted for in a completely different way, and can be recorded and tracked inside or outside Quickbooks (if the business doesn't have Quickbooks Plus or Advanced (enterprise) online, it must be tracked outside Quickbooks, usually on a spreadsheet or using other apps). Typically inventory is something you charge your customers for that you would always have a certain quantity of on hand (screws, nails, buttons, clothing, cans, bags).
When you check off the billable expense box, you MUST enter the customer's name. This is the name of the customer that you will receive the money for the expense from.
Next, you would create an invoice, adding the billable expense to it.
Finally, when you receive payment from your customer for the expense, you record the customer's payment.
Now regarding the Travel expenses. Travel expenses do need to be booked separately for tax purposes. (I have been a tax preparer for ten years, a bookkeeper for six years, and assisting clients with their payroll and bookkeeping for three years.) This includes lodging, food while on an overnight trip, and airfare or other travel tickets. Business meals with clients also need to be recorded separately, along with details of which client you met with and general purpose of the meeting (sales, etc).
I have much of the same issue with a twist.
Our small rural homeowners’ association has 6 wells that are shared among 66 members. Well electricity fees are collected annually and are recorded as income and expenses. In addition, General Annual Assessments are collected for road repairs and administrative costs.
However, bills for individual well REPAIRS are sent directly to our bookkeeper for immediate payment to be reimbursed (hopefully) by shared well owners. How is this shown in our Chart of Accounts and Income Statement? Do we show this as Income and Expense?
While this is a well expense for our homeowners, it is not a well expense for the association. Would this be an administrative expense? How do we assign it in the Chart of Accounts? At the end of the year when we prepare our budget for member approval, we have 3 simple areas to report: Road Expenses, Well Expenses (electricity) and Administrative Expenses.
Thanks for any input.
I found the following. What are your thoughts?
https://blog.tallie.com/quickbooks-desktop-manage-billable-expenses-using-service-items/ If you map bill or check line items to a Service Item rather than directly to an account, you can capture the cost and income more effectively and have the billable expenses appear in a clearer, more organized manner on an invoice.