How to create invoices from billable expenses in QuickBooks Online
In this blog post, we will share how to create invoices from billable expenses in QuickBooks Online. So if you're looking for help figuring out how to create an invoice from your billable expenses, read on!
To invoice your customers for their billable invoicing expenses and/or time, first click on Sales within QuickBooks and choose Customers. You can filter customer records by Unbilled Activities. Turning that on will show you all of your customers who need to have something charged, billed or invoiced. Unbilled activities can be both time and expenses that are marked as billable.
We can see that Amy's Bird Sanctuary has an unbilled amount of $3,550. That would make the "current balance" $0 because they still need to have an invoice created for them that brings all of those transactions together onto one invoice and sent to the client.
To start doing this, open the Create menu and select Invoice. Then enter "Amy's Bird Sanctuary" in the customer field. And over on the right-hand side a drawer pops out, detailing all the various time and billable expenses that we've assigned to this customer. Notice that each box represents a single transaction that has been entered in the past, and what was marked as billed. The days with billable times show up as individual boxes, including the date it was done for a customer and the amount. You can choose to either not group the time into different columns (so the charge will appear on totally separate lines) or you can group it by service instead. Grouping an invoice is often preferred for legibility purposes because it makes billing simpler and easier to follow. These items can be added individually by clicking on Add. Notice that QuickBooks uses gardening as the product or service. This is the same product or service that was used on the time entered for the employee. And then you have the time period as well as the description that was also on the time period. There's a quantity and total amount right here as well.
On the second line is a billable expense described as rented a backhoe for landscaping, and then also a 10% markup. The customer, by default, will not see this. Instead, they'll see one line for $550 with a description of rented a backhoe for landscaping.
If you want to see the transactions that have been used to calculate this invoice, click on Linked Transactions at the top left of the page. Also, if there are any other changes that you need to make to any of the products and services, quantity rates or amounts, or you just want to include something else that wasn't on the original billable expenses and time, you can click on the detail line and continue to add more and more products and services.
Your invoice options are the same for any other invoice right at the bottom. Let's save this by clicking on Save and Send it to our client. You can change the Subject and Body of this email which will be sent to the customer. As well as editing the PDF preview, which they will receive once they open it. After making your changes, press Send and close.
Looking at the list of customers, we can see that Amy's Bird Sanctuary now has an open balance, with no unpaid bills.
We can see how easy it is to generate invoices for billable expenses in QuickBooks Online.
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