What Does Billable Mean in QuickBooks?
In the world of accounting and bookkeeping, the term “billable” refers to the expenses or time that can be charged to a customer or client. When using QuickBooks, understanding what billable means is crucial to accurately track and invoice your customers. In this article, we will explore the concept of billable in QuickBooks and answer some common questions related to it.
Billable Expenses in QuickBooks:
In QuickBooks, billable expenses are costs that you incur on behalf of a customer and can be reimbursed. For example, if you purchase office supplies for a specific project, you can mark those expenses as billable to the customer. This allows you to pass on the cost to the customer when invoicing them.
To mark an expense as billable in QuickBooks, you need to create a bill or enter the expense directly in the expense form. Make sure to check the “Billable” checkbox and select the customer or project associated with the expense. When you create an invoice for that customer, the billable expenses will automatically be added to the invoice.
Billable Time in QuickBooks:
Apart from expenses, you can also track billable time in QuickBooks. This is particularly useful for service-based businesses that charge clients for the time spent on a project or task. You can create time entries for each employee or contractor, specify the customer or project, and mark it as billable.
To track billable time in QuickBooks, go to the Time Tracking feature and create a new time entry. Enter the details such as the employee, customer, service item, and duration of the work. Make sure to check the “Billable” checkbox to indicate that this time should be invoiced to the customer.
Common Questions and Answers:
1. How can I view billable expenses and time in QuickBooks?
To view billable expenses, go to the Reports tab, select “Expenses and Vendors,” and choose “Unbilled Costs by Job.” To see billable time, go to the Reports tab, select “Jobs, Time & Mileage,” and choose “Unbilled Time.”
2. Can I modify billable expenses or time entries after they have been invoiced?
Yes, you can modify billable expenses or time entries even after they have been invoiced. Simply make the necessary changes to the expense or time entry, and QuickBooks will update the invoice accordingly.
3. How do I apply billable expenses to an invoice?
When creating an invoice, QuickBooks will automatically include any billable expenses associated with that customer or project. You can review and add or remove any expenses before finalizing the invoice.
4. Can I mark a customer as non-billable in QuickBooks?
Yes, you can mark a customer as non-billable if you do not want to charge them for any expenses or time. Simply go to the customer’s profile, edit the details, and uncheck the “Billable” checkbox.
5. Is it possible to track billable mileage in QuickBooks?
Yes, you can track billable mileage in QuickBooks by creating an expense entry for the mileage and marking it as billable. Make sure to enter the customer or project associated with the mileage.
6. How can I set a default billable rate for a service item?
To set a default billable rate for a service item, go to the Item List, find the service item, and edit its details. In the “Sales Information” section, enter the default rate and check the “Billable” checkbox.
7. Can I convert billable time to an invoice in QuickBooks?
Yes, you can easily convert billable time to an invoice in QuickBooks. Go to the Time Tracking feature, select the desired time entries, and click on “Add to Invoice.” QuickBooks will create a new invoice with the billable time included.
8. How do I differentiate between billable and non-billable expenses in reports?
In reports such as the Profit and Loss report, you can differentiate between billable and non-billable expenses by customizing the report. Select the “Customize” button, go to the “Filters” tab, and choose the “Billable” filter to include or exclude billable expenses.
9. Can I track billable expenses for multiple projects under the same customer in QuickBooks?
Yes, you can track billable expenses for multiple projects under the same customer in QuickBooks. Simply create separate project names or job codes for each project, and assign the expenses or time entries to the respective project.
10. How can I mark multiple expenses or time entries as billable at once?
To mark multiple expenses or time entries as billable at once, go to the Expenses or Time Tracking feature, select the desired entries using checkboxes, and choose the “Mark as Billable” option from the Actions menu.
11. Is there a way to track billable expenses without creating an invoice?
Yes, you can track billable expenses without creating an invoice by using the “Billable Expense” feature in QuickBooks. This feature allows you to record billable expenses and later add them to an invoice when needed.
In conclusion, understanding what billable means in QuickBooks is essential for accurate invoicing and tracking of customer-related expenses and time. By utilizing the billable feature effectively, you can ensure that you are properly reimbursed for the costs incurred on behalf of your customers or clients.