Recording Reimbursable Expenses with Wave Accounting and QuickBooks

[@NaveedGhalib]

Thank you! This is really helpful.

[@michellenewberry]

You’re welcome!

[@patricelaurence5535]

This was absolutely amazing! Thank you so much for explaining the two methods and two accounting systems. You are so clear and easy to understand!

[@michellenewberry]

You are welcome!

[@Joshua-vl2hc]

Hi. I am actually a bookkeeper in a Law Firm, your video is so helpful it gives my idea to decide weather that's treated as expense or current asset. Now is there a way that we can track this cost for a specific firm's client? For example the Firm has 3 clients how can we tract this?

[@michellenewberry]

Many law firms have law based software programs that allow them to track their matter expenses. If using QuickBooks, there is a feature that allows you to mark any expenses as billable to a specific customer. Wave doesn't have that capability. A spreadsheet could be used if you don't have a software with the capability.

[@HDTVReviewsnRatings]

Thanks a lot this is great. How about if we want to markup the expenses? I noticed in QB the option is there. Is there way to do it in Wave? Or just manually adjust the sales price?

[@michellenewberry]

There isn't a way to do that in Wave.

[@TobyMiller1970]

Hi Michell, I pay for my client's QBO Subscription. I created the expense and clicked on the Billable field and assigned it to the client. I did NOT mark it up. I created an invoice and then added the expense. I do NOT want the reimbursement to show up as income or expense on my Profit and Loss. What step(s) should I take to set that up correctly? Should I uncheck or remove the check mark next to "Track billable expenses and items as income" Thanks in advance!

[@michellenewberry]

If you don't want it to show up on the Profit & Loss, I suggest creating a current asset account for reimbursable expenses. Then create an item under Products & Services for reimbursable expenses and map it to the asset account you created. Make sure you use your reimbursable expense category on the expense itself, and then when you bill it to the customer use your product & services item that maps to the same asset account.

[@TobyMiller1970]

@@michellenewberry, thank you so much! Should I also go to Company Settings and then Expenses and then uncheck the box next to "Track billable expenses and items as income" ?

[@michellenewberry]

@@TobyMiller1970 Yes. When you pull the item onto the invoice you may have to change the line item to your new product & service item. That's what I usually do.

[@TobyMiller1970]

@@michellenewberry Thanks again! :)

[@michaelgreen7484]

Questiion: When you set up the Reimbursable expenses account, what type of accoount did you choose? I am buying materials for doing home repair for clients. thanks

[@michellenewberry]

In your case with that type of business, I think setting it up as a Cost of Goods Sold account would be appropriate.