Hello information1,
Billable Expense Income account is automatically used when you create an expense transaction and mark it billable to the customer. Billable expenses are reimbursed by billing your customer. They are the expenses that are incurred by you on behalf of your customer in performing some work, services or supplies.
You can mark bills, checks, expenses, etc. as billable, and can later be applied to invoices. They will show up as an expense on your register. Then, it will also show as income when invoiced. which varies significantly from product income. You can use this link for more information about the billable expense: Enter billable expenses.
Meanwhile, Service Income account is usually used for items when you provide a service to your customer instead of products.
Your accountant will be able to provide a much more accurate explanation of their differences. They can also suggest which account would be suitable to use for your business setup.
Feel free to get back to us if you need help in setting this up in QuickBooks Online. Have a great day!
