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mushahidlatif
Level 1

Can a account be used for expense and income both?

we received money from our customers for vehicle registration.We earn from this as service provider how can we enter these entries in quick books.

Solved
Best answer January 01, 2019

Best Answers
qbteachmt
Level 15

Can a account be used for expense and income both?

You either have Gross Expense and Gross Revenue; or this is Liability accounting as a Trust. Never wash data through one income account or one expense account, as you asked to do.

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2 Comments 2
AldrinS
QuickBooks Team

Can a account be used for expense and income both?

Hi there, mushahidlatif.

 

It's a pleasure to have you join us here in the Community. I'm by no means an accounting professional, but I do have some insight to provide that can help get you on the right track to recording this.

 

In the situation you've explained, you could enter these entries as billable expenses. With this, you'll be to use the right account when you enter a bill/check (expense) for the registration and when you invoice (income) them as the service provider.

 

To show you how this works in QuickBooks, allow me to walk you through the steps on how to create a billable expense:

  1. From the Banking menu, select Write Checks.
    - Just to clarify, you can also enter a bill if you want. I'm just using checks for now to avoid any confusion.
  2. Fill in the appropriate details on the following fields:
    - Pay to the order of: Choose the correct vendor.
    - Date: Enter the date when the transaction happened.
    - Account: Make sure to enter the correct account.
    - Amount: The total amount you paid.
    - Customer:Job: Enter the name of the customer.
    - Billable: Check the billable checkbox.
  3. Click Save & Close.

Once the expense transaction has been created, here's how we can invoice the customer:

  1. Click the Customers menu, then select Create Invoices.
  2. From the Customer:Job drop-down menu, choose the customer you entered on the bill.
  3. On the Billable Time/Costs pop-up window, choose Select the outstanding billable time and costs to add to this invoice.
  4. Go to the Expenses tab.
  5. Select the right expense.
  6. In the Markup Amount or % field, make sure the correct amount or percentage is entered.
  7. In the Markup Account field, make sure the right account is selected.
  8. Click OK, then Save & Close.

Just a heads up, this method can impact your books and you may wish to seek additional guidance from an accounting professional. Every business is unique and they can make suggestions on how to handle this. If you're not affiliated with one, then our Intuit Find-A-ProAdvisor site can help you to find certified professionals in your area.

 

That should do it! I'm confident that with these resources you'll be able to enter billable expenses like a pro in no time.

 

You're always in good hands here in the Community. If you need more help with your expenses please don't hesitate to reach out to me again. Wishing you a lovely day.

qbteachmt
Level 15

Can a account be used for expense and income both?

You either have Gross Expense and Gross Revenue; or this is Liability accounting as a Trust. Never wash data through one income account or one expense account, as you asked to do.

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