Ask the Accountant…
Question: What are Billable Expenses in QBO?
Answer: You will see a billable expense income account and a billable expense asset account in QuickBooks Online.
These accounts allow for a pass-through transaction where you purchase something for your client for which they will be reimbursing you. Use of these accounts allows you to record the transaction without impacting your profit and loss statement. This is not something you see often, if at all, in our industry.
To avoid confusion, you can turn off the “Billable” feature in your QBO. To do this, go to the gear icon in the top right of the Home Page in QBO, and click “Account and Settings” in the left column of the drop-down. Click “Expenses,” and make sure that “Make expenses and items billable” is turned to “Off.”
Please email accounting questions you would like considered for the column to [email protected] with the subject line of “Ask the Accountant”.
