Billable Time-Expenses
Starting Balances
Billable Time - Expenses Starting Balances
Billable Time
Billable time records work for a customer who will be invoiced on an hourly basis at a defined rate. It is suitable for a wide range of business applications, such as:
- Consultants who bill by the hour rather than the project
- Lawyers who charge different rates for research than for courtroom time
- Repair technicians billing for time and materials
Billable expenses
Billable expenses are expenses incurred on behalf of a customer. They do not initially appear on your Profit and Loss Statement, because they are not expenses of your business. Instead, they will reside temporarily as assets on your Balance Sheet and be passed through to the customer by invoicing. Only after invoicing do they show up on your Profit and Loss Statement. In this respect, they are treated much like inventory items.
Accrual Basis
For those migrating from another accounting system and going to use the accrual basis of accounting follow the instructions below.
Enter your billed but unpaid invoices
- Create a Non-inventory item named CustomerExpenses
- Enter your invoices by selecting the Sales Invoices tab
- Enter the customer, actual invoice number, actual invoice date (prior to your starting date), amount and select the Non-inventory item CustomerExpense from the drop-down item listing.
All the invoices entered will be a part of your starting Accounts Receivable Balance.
For new transactions (after the starting date), use Manager's Billable Time and Billable Expenses Instructions.
Cash Basis
For those going to use the cash basis the easiest way to get started is for you to use your old method for your billed and unbilled transactions prior to your starting date and for new transactions (after the starting date), use Manager's Billable Time and Billable Expenses Instructions.
For addition information check out Billable Time and Billable Expenses.