QuickBooks software provides a variety of features to help identify and distinguish a reimbursable expense in QuickBooks from other types of expenses. Additionally features are also available to allow business owners to track specific expenses so that they are made aware of the timing of an invoice being sent to customers. This feature is important because it allows business owners to receive payment back from a good or service that they purchased on behalf of a customer but that they expect to receive reimbursement for.
Methods of Recording Expenses in QuickBooks
QuickBooks provides four ways to record business expenses, including reimbursable expenses in QuickBooks. These methods include:
- Using the Vendor/Enter Bills menu to record a bill from a vendor
- Using the Banking/Write Checks option in order to write a check
- Using the Banking/Enter Credit Card Charges option by recording a transaction involving a credit card
- Using the Company/Make General Journal Entries by making a general journal entry
All four of these options allow business owners to establish a relationship between specific transaction line items with a specific customer or job. This process allows business owners to evaluate the revenue that they receive for a specific job and the expenses related to each job.
Making Reimbursable Marks
When business owners use one of the processes described above, QuickBooks automatically inserts a check mark in the field titled “Billable” to show that the transaction is regarding a reimbursable expense that should be invoiced to a specific customer. If business owners do not want the transaction to be associated with a reimbursable expense, they simply click in the box to remove the mark. There is no current method to change the default setting for the Billable field. Having a customer or job associated with a reimbursable mark helps business owners to analyze the profit margin of their business.
QuickBooks uses a variety of user-friendly features to allow business owners to assess the health of their businesses. The features that allow for a business owner to track and distinguish a reimbursable expense in QuickBooks helps business owners easily keep track of expenses that have not yet been repaid to them. For more assistance with your QuickBooks software, contact our QuickBooks ProAdvisor in your area.